The Nigerian House of Representatives has approved four major tax reform bills, marking a significant step toward overhauling the country’s tax administration. The bills successfully passed their third reading on Tuesday after rigorous legislative scrutiny.
Legislative Process and Public Input
Initially presented to the National Assembly by the Executive in October 2024, these bills underwent thorough clause-by-clause evaluation during the Committee of the Whole session last Thursday.
The House Committee on Finance also organized a public hearing to gather feedback from key stakeholders, tax experts, and business representatives. This consultative process played a crucial role in shaping the final versions of the bills.
Next Steps: Senate Approval and Presidential Assent
With the House of Representatives’ approval secured, the focus now shifts to the Senate. The upper chamber must review and pass the bills before they are sent to President Bola Tinubu for assent.
Once signed into law, these reforms are expected to streamline tax collection, improve compliance, and strengthen Nigeria’s fiscal framework.
Breaking: Tax Reforms Vital for Economic Growth in West Africa
Breakdown of the Four Tax Bills
- Nigeria Tax Administration Bill (HB.1756) – Establishes comprehensive guidelines for the assessment, collection, and management of tax revenues across federal, state, and local governments. It also defines the powers and functions of tax authorities.
- Nigeria Revenue Service (Establishment) Bill (HB.1757) – Repeals the Federal Inland Revenue Service (FIRS) Act of 2007 and establishes the Nigeria Revenue Service (NRS), a restructured agency with enhanced powers to assess, collect, and account for government revenues.
- Joint Revenue Board Bill (HB.1758) – Forms a Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman. These institutions will oversee tax harmonization, coordination, and dispute resolution across the country.
- Nigeria Tax Bill (HB.1759) – Repeals outdated tax laws and consolidates Nigeria’s taxation framework into a single, modernized legal structure. It provides clarity on the taxation of income, transactions, and financial instruments.
Public Debate and Adjustments
The proposed reforms sparked nationwide debate, with concerns raised over their potential impact on businesses and taxpayers. To address these issues, the House Committee on Finance incorporated extensive amendments, ensuring the bills reflect a balanced and inclusive tax policy.
During the final reading, the bills were presented by House Leader Prof. Julius Ihonvbere, while Speaker Tajudeen Abbas led the voting process. The overwhelming support from lawmakers confirmed the legislative backing for tax reforms.
A New Era for Nigeria’s Tax System
The passage of these bills marks a crucial milestone in Nigeria’s tax modernization efforts. If enacted, they will enhance tax compliance, reduce bureaucratic bottlenecks, and create a more transparent tax regime.
Senate President Godswill Akpabio has emphasized the importance of these reforms, urging Nigerians to embrace the new tax framework.
“A reformed tax system is essential for Nigeria’s economic growth. We must eliminate inefficiencies and build a structure that supports businesses and drives national development,” he stated.
As Nigeria moves closer to implementing these transformative tax policies, all eyes remain on the Senate and the President’s final decision.
