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Tax Reform Bill Advance to Second Reading

Kehinde Fajobi

The Senate has approved the second reading of four tax reform bills submitted by President Bola Tinubu for legislative consideration.

Following the debate during Thursday’s plenary, Senate President Godswill Akpabio referred the bills to the Finance Committee, chaired by Senator Sani Musa (APC, Niger East), for further legislative scrutiny. The committee has six weeks to present its findings.

Before the debate began, the Senate held a closed-door session from 11:55 a.m. to 12:42 p.m.

Leading the debate, Senate Leader Opeyemi Bamidele (APC, Ekiti Central) outlined the principles of the bills.

He explained their significance in modernising Nigeria’s tax framework.

The bills include:

  1. The Joint Revenue Board Establishment Bill (SB. 583): This seeks to create the Joint Revenue Board, Tax Appeal Tribunal, and Tax Ombud to harmonise revenue administration and resolve disputes.
  2. The Nigeria Revenue Service Establishment Bill (SB. 584): This will replace the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service to oversee revenue assessment, collection, and accountability.
  3. The Tax Administration Bill (SB. 585): This bill defines the powers and responsibilities of tax authorities across federal, state, and local governments.
  4. The Nigeria Tax Bill (SB. 586): This proposes repealing outdated tax laws and consolidating legal frameworks to simplify income and transaction taxation.

Senate President Akpabio assured Nigerians of a thorough legislative process, promising that public hearings will involve experts, governors under the Nigeria Governors Forum (NGF), traditional rulers, and other stakeholders.

“During the public hearing, we will invite experts, governors, and other stakeholders. At the end of the day, we will give Nigerians and the country what is good,” Akpabio stated.

President Tinubu initially forwarded the bills on September 3, 2024, based on recommendations from the Presidential Committee on Fiscal and Tax Reforms, chaired by Taiwo Oyedele.

The aim is to review existing tax laws and establish a more efficient fiscal framework.

The National Economic Council (NEC), led by Vice President Kashim Shettima, had earlier suggested withdrawing the bills for wider consultation.

However, President Tinubu, on October 31, urged lawmakers to proceed with the legislative process, noting that public hearings would provide Nigerians an opportunity to review the bills and contribute input.

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