The House of Representatives has passed President Bola Tinubu’s four tax reform bills on third reading, marking a significant milestone in Nigeria’s efforts to overhaul its tax administration system.
The bills, originally transmitted to the National Assembly in October 2024, faced months of scrutiny, including public hearings and input from stakeholders. However, after renewed deliberations, the House Committee on Finance recommended their passage, which was finalized during Tuesday’s plenary.
House Leader Julius Ihonvbere led the motion, emphasizing the importance of modernizing tax assessment, revenue collection, and the powers of tax authorities. Key provisions of the bills include:
- The repeal of the Federal Inland Revenue Service (FIRS) Act and the establishment of the Nigeria Revenue Service, granting it authority over tax administration.
- The creation of the Joint Revenue Board, Tax Appeal Tribunal, and Office of the Tax Ombudsman, aimed at streamlining tax disputes and enforcement.
- The repeal and consolidation of multiple tax laws into the Nigeria Tax Act, unifying the legal framework for income, transaction, and instrument taxation.
Despite broad legislative support, opposition emerged from lawmakers in northern Nigeria, aligning with their governors’ calls for further consultation before implementation.
With Speaker Tajudeen Abbas presiding, the bills were passed and will now proceed to the Senate for approval before being sent to President Tinubu for assent. If necessary, harmonization between both legislative chambers will follow.
If signed into law, these reforms are expected to reshape Nigeria’s tax landscape, enhancing revenue generation and streamlining tax processes nationwide.
