Nigeria’s House of Representatives has passed the four tax reform bills presented by President Bola Ahmed Tinubu for a third reading. This development follows the House’s consideration and approval of the report from the House Committee on Finance, which worked on the bills and reviewed submissions from Nigerians. The bills were initially submitted to the National Assembly in October 2024.
The tax reform package includes the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These bills have generated significant controversy, particularly over the proposed value-added tax (VAT) increase. The House Committee decided to retain the VAT rate at 7.5 percent, a decision that countered the proposed increase to 15 percent.
The bills had faced opposition from various groups, notably the Northern Nigeria Governors’ Forum, which objected to the value-added tax derivation model in the Nigeria Tax Bill. Additionally, the National Economic Council had also voiced concerns over the tax derivation model. Despite this opposition, the bills are now one step closer to becoming law.