Nigeria eyes Pakistan’s revenue reforms

November 20, 2025 (MLN): Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is studying Pakistan’s revenue administration and fiscal frameworks as part of its ongoing review of the country’s national revenue distribution system.

A 13-member delegation, led by RMAFC Federal Commissioner Barrister Imo Effiong Akpan, visited Islamabad to engage with Pakistani authorities on best practices in taxation, customs, and federal revenue sharing.

The delegation met Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, alongside senior officials from the Finance and Revenue Division.

During the discussions, the Finance Minister briefed the Nigerian team on Pakistan’s macroeconomic progress and ongoing reform agenda under the Prime Minister’s leadership.

 He highlighted improvements over the past 18 months, including external account stability, moderation in inflation, strengthened fiscal discipline, and growing market confidence.

Barrister Akpan explained that the visit is part of a study tour designed to inform Nigeria’s national policy review, allowing officials to learn from Pakistan’s experience in tax administration, resource management, and fiscal governance.

The delegation also engaged with the Federal Board of Revenue (FBR) and other government institutions to examine reforms in digitization, compliance enforcement, and customs modernization.

Senator Aurangzeb detailed major structural reforms, including broadening the tax base, real-time risk-based compliance, improved documentation, and steps toward a Pakistan Revenue Authority model.

He also outlined energy sector reforms aimed at tackling circular debt, implementing cost-reflective tariffs, and promoting market-based operations.

State-owned enterprise reforms were also discussed, with Aurangzeb noting the transition to a holding company structure and accelerated privatization.

He highlighted that 24 enterprises have already been transferred to the Privatization Commission and emphasized the modernization of pension frameworks to enhance long-term fiscal sustainability.

The Finance Minister explained Pakistan’s bi-monthly federal revenue distribution process, governed by constitutional frameworks and executed by the Ministry of Finance.

He also described mechanisms for determining public officeholder remuneration through autonomous bodies, parliamentary forums, and Cabinet approval.

Highlighting Pakistan’s shift toward private-sector-led growth, Aurangzeb said sectors such as banking have already seen strong private participation.

He added that regulatory reforms are being pursued to reduce unnecessary state intervention in agriculture and industrial markets.

The Minister reaffirmed Pakistan’s commitment to knowledge exchange and institutional collaboration, noting potential B2B cooperation in mining, renewable energy, and industrial development.

Barrister Akpan thanked Pakistani authorities for their hospitality and indicated that insights gained during the visit will inform Nigeria’s fiscal reform policies.

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