Reps Finally Pass Tinubu’s Tax Reform Bills After Intense Opposition
Written by SpringNewsNG Media Limited, March 18, 2025.
After months of opposition and heated debates, the House of Representatives has finally passed the four tax reform bills transmitted by President Bola Tinubu to the National Assembly in October 2024. The bills were read for the third time during plenary on Tuesday, marking a significant step towards tax reform in Nigeria.
Last week, the House adopted its report, which contained several amendments, particularly to the contentious areas of the bills. The legislative process saw intense scrutiny and revisions to address concerns raised by stakeholders and lawmakers.
The four bills, aimed at enhancing government revenue, streamlining tax collection, and adjusting tax rates across various sectors, will now be transmitted to the Senate for concurrence. Upon Senate approval, they will be sent to the President for assent, officially enacting them into law.
The first bill, titled 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 (HB.1756), seeks to establish a more efficient framework for tax administration across all levels of government.
The second bill, The Nigeria Revenue Service (Establishment) Bill (HB.1757), proposes the repeal of the Federal Inland Revenue Service (Establishment) Act, No.13, 2007, and the creation of the Nigeria Revenue Service. This new entity will be charged with the assessment, collection, and accounting of revenue accruable to the federal government.
The third bill, The Joint Revenue Board, Tax Appeal Tribunal, and Tax Ombud Bill (HB.1758), aims to establish a Joint Revenue Board, a Tax Appeal Tribunal, and the Office of the Tax Ombud. These bodies will harmonize, coordinate, and settle disputes arising from revenue administration in Nigeria.
The final bill, The Nigeria Tax Act (HB.1759), seeks to repeal certain existing tax laws, consolidate the legal framework for taxation, and provide clear guidelines for the taxation of income, transactions, and instruments.
With the passage of these bills, the Tinubu administration moves closer to implementing its tax reform agenda, which is expected to boost government revenue, reduce tax leakages, and improve the overall business climate in Nigeria. However, the bills will still require Senate approval and presidential assent before becoming law.
