The Senate on Wednesday approved two out of the four tax reform bills submitted by President Bola Tinubu, marking a significant step in Nigeria’s tax administration overhaul.
The passed bills are the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill. Their approval followed a delayed session on Tuesday to resolve contentious provisions.
However, the Senate rejected a proposal to increase the Value-Added Tax (VAT) from 7.5% to 10%, citing public concern over Nigeria’s rising cost of living. The decision reflects a move to balance fiscal reforms with economic realities.
The four tax bills were originally transmitted to the National Assembly by President Tinubu in October 2024 as part of broader fiscal reforms to boost revenue and improve public finance management.
The Senate’s approval came after a two-hour review of the report submitted by the ad hoc committee led by Senator Sani Musa (Niger East), and the session wrapped up around 5:30 p.m.
Senate President Godswill Akpabio, announcing the passage through a majority voice vote, praised lawmakers for addressing the controversial aspects of the bills.
“These bills will transform tax collection and distribution in Nigeria,” Akpabio said. “They will revolutionize tax administration. I commend all senators for their sacrifices in producing legislation that will stand the test of time.”
He also noted that work on the remaining two bills would be completed the next day (Thursday), even if it required extended sitting hours.
Deputy Senate President Barau Jibrin also acknowledged the Senate's progress, emphasizing the value of dialogue in reaching consensus.
“It’s normal to have disagreements on sensitive matters. The Finance Committee and the Committee of Elders showed great leadership. Engagements with stakeholders—including religious leaders, regional groups, and the Nigerian Governors’ Forum—helped resolve all issues. This is the strength of democracy,” he said.
The House of Representatives had earlier passed all four tax bills. The Senate's concurrence on the first two paves the way for a new tax regime once the bills are transmitted to and signed by President Tinubu.
