The Nigerian House of Representatives has passed four key tax reform bills aimed at propelling Nigeria’s economy, completing their third reading on Tuesday following detailed deliberations.
The bills, initially submitted to the National Assembly by the Executive in October 2024, underwent a clause-by-clause review at the Committee of the Whole last Thursday.
This followed a public hearing organized by the House Committee on Finance, where various opinions and interests were presented.
After securing approval from the House of Representatives, the focus now turns to the Senate, which must also approve the proposed reforms before they can be forwarded to President Tinubu for assent. Once signed into law, these reforms are expected to enhance Nigeria’s fiscal policies and improve revenue collection.
The four tax reform bills
1. Nigeria Tax Administration Bill (HB.1756) – “A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments; Prescribe the Powers and Functions of Tax Authorities; and for Related Matters.”
2. Nigeria Revenue Service (Establishment) Bill (HB.1757) – “A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007 and Enact the Nigeria Revenue Service (Establishment) Bill to Establish Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation and for Related Matters.”
3. Joint Revenue Board Bill (HB.1758) – “A Bill for an Act to Establish Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombudsman, for the Harmonization, Coordination and Settlement of Disputes arising from Revenue Administration in Nigeria and for Related Matters.”
4. Nigeria Tax Bill (HB.1759) – “A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide for Taxation of Income, Transactions and Instruments, and for Related Matters.”
What you should know
The tax bills generated significant public debate and skepticism across various groups and regions in the country. In response, extensive consultations were held to incorporate diverse opinions into the legislative process.
As a result, the bills were fine-tuned through a series of amendments, deletions, and the inclusion of new sections and subsections recommended by the House Committee on Finance before their final adoption.
- During the session, the bills were presented by the House Leader, Prof. Julius Ihonvbere. Speaker of the House, Mr. Tajudeen Abbas, conducted the voting process, with the “yeas” prevailing to approve each bill.
- The passage of these bills puts an end to speculation over whether the reforms would be enacted. The legislation is expected to modernize Nigeria’s tax system, making it more efficient and transparent.
Highlighting the importance of the reforms, Senate President Godswill Akpabio previously urged Nigerians to support the tax reform agenda. “Reforming Nigeria’s tax administration is key to the nation’s future prosperity,” he stated, emphasizing that outdated tax practices and bureaucratic hurdles must give way to a robust, business-friendly framework.
