Senate Passes Tax Reform Bills For Second Reading

President Bola Tinubu had transmitted the bills to the National Assembly for consideration on October 3, sparking controversy, particularly among Northern governors and other stakeholders who voiced opposition to the reforms.

In response, the Presidency clarified that the bills were not intended to target any specific region but were part of a broader effort to promote national development.

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The Senate’s second reading included a Bill to Establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud, all key components of Tinubu’s comprehensive tax reform agenda.

The legislation aims to streamline and coordinate revenue administration, as well as address disputes within Nigeria’s tax system.

During the session, lawmakers discussed the general principles of the reform bills. Prior to the open debate, the Senate held a closed-door meeting to review the four bills, which were initially transmitted by President Tinubu on September 3, 2024, in line with recommendations from the Tax Reforms Committee chaired by Taiwo Oyedele.

While the reforms were largely recognized as crucial for modernizing Nigeria’s tax system and alleviating the tax burden on citizens, Senator Ali Ndume raised concerns about the timing and certain provisions.

He suggested that, with amendments, the bills could be passed “in less than 24 hours” if withdrawn and reintroduced.

However, the Chief Whip strongly disagreed, advocating for the bills to proceed to the public hearing stage as part of the legislative process.

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The bills include the Nigeria Tax Bill 2024, which aims to establish a comprehensive fiscal framework for taxation in the country, and the Tax Administration Bill, designed to create a clear and concise legal framework for all taxes, thereby reducing disputes.

Additionally, there is the Nigeria Revenue Service Establishment Bill, which seeks to repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which proposes the creation of a tax tribunal and a tax ombudsman.

In his submission, the president emphasized that these bills are intended to strengthen Nigeria’s fiscal institutions and align with his administration’s broader development objectives.