The Nigerian Senate has passed four key tax reform bills for second reading, with the President of the Senate, Senator Godswill Akpabio, referring them to the Senate Committee on Finance, led by Senator Sani Musa, for further legislative action. The bills, which were debated during Thursday’s plenary, aim to overhaul the country’s tax framework and address existing challenges in revenue administration.
The bills include the establishment of the Joint Revenue Board, the Tax Appeal Tribunal, and the Tax Ombud office, designed to harmonize and settle disputes related to revenue matters in Nigeria. Additionally, one bill seeks to repeal the Federal Inland Revenue Service (FIRS) Act and create the Nigeria Revenue Service to handle tax assessment, collection, and accountability. Another bill is focused on improving the assessment and collection of taxes across federal, state, and local government levels, while the fourth bill aims to consolidate various tax laws and introduce the Nigeria Tax Act for clearer regulations on taxation of income and transactions.
The Senate’s decision follows a presentation by Senate Leader, Senator Opeyemi Bamidele, on the general principles of the bills. The bills were initially submitted by President Bola Tinubu on September 3, 2024, as part of a broader effort to reform the country’s tax system based on recommendations from the Presidential Committee on Fiscal and Tax Reforms.
The Senate has set a six-week deadline for the Committee on Finance to report back, and during this period, experts, governors, and other stakeholders will be invited to contribute to the discussions. Despite initial calls from the National Economic Council for wider consultations, President Tinubu has insisted that the bills go through the legislative process to ensure transparency and allow for public input.