The Federal Government of Nigeria has commended the House of Representatives for the passage of four tax reform bills for a second reading on Wednesday.
The four tax reform bills—the Joint Revenue Board of Nigeria (Establishment) Bill 2024, the Nigeria Revenue Service (Establishment) Bill 2024, the Nigeria Tax Administration Bill 2024, and the Nigeria Tax Bill 2024— have been referred to the Finance Committee of the House for further legislative work.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, expressed his gratitude to the lawmakers for their robust debates and diligent consideration of the bills.
“The House of Representatives has today passed the four tax reform bills for Second Reading and referred them to the Finance Committee of the House for further legislative work, including public hearing.
“We are grateful to the lawmakers for their robust debates and diligent consideration of the bills and look forward to continued engagement with the National Assembly and active participation in the public hearing process. May Nigeria win!” Oyedele wrote on X.
Robust debate
The Nigerian House of Representatives passed for a second reading the four tax reform bills proposed by President Bola Tinubu, following an extensive debate on the House floor.
- Collectively aimed at overhauling the Nigerian tax system, these bills were transmitted to the National Assembly by President Bola Tinubu last year.
- Leading the debate on Wednesday, the Majority Leader, Julius Ihonvbere, addressed many of the concerns raised about the bills, noting that issues had been resolved through the Nigerian Governors’ Forum (NGF).
Ihonvbere stated that the House had held several meetings with different caucuses to address their concerns. He also highlighted some of the benefits of the bills, including tax exemptions for low-income earners.
What you should know
After a debate lasting over four hours, the bill was passed for a second reading when it was put to a vote by Speaker Abbas Tajudeen. The bills were subsequently referred to the House Committee on Finance for further legislative action.
- The tax reform bills, drafted by the Presidential Committee on Tax Reforms and Fiscal Policy, aim to overhaul the existing tax laws in Nigeria.
- However, the bills have faced stiff opposition, mainly from the northern parts of the country, particularly from northern governors who have described them as “anti-North.” The debates on the bills have escalated into a North vs. South issue, particularly over the VAT sharing formula.
The National Economic Council (NEC), a body composed of governors and chaired by Vice President Kashim Shettima, urged the president to withdraw the bills for further consultations. However, the president refused, stating that all concerns should be addressed in the National Assembly.
