The Nigerian Senate, during its plenary on Thursday, approved the second reading of four tax reform bills aimed at overhauling the nation’s tax system.
Senate President Godswill Akpabio directed the Finance Committee, chaired by Senator Sani Musa, to review the bills further and present its findings within six weeks.
Senate Leader Opeyemi Bamidele, who presented the bills, explained their purpose was to streamline tax collection, address disputes, and enhance the efficiency of Nigeria’s tax system.
“These bills aim to establish a Joint Revenue Board, a Tax Appeal Tribunal, and a Tax Ombud,” Bamidele stated. “They also provide a framework for assessing, collecting, and accounting for revenue at all government levels, and consolidate existing tax laws.”
The reform package includes:
1. The Joint Revenue Board, Tax Appeal Tribunal, and Tax Ombud Establishment Bill
2. The Nigeria Revenue Service Establishment Bill, replacing the Federal Inland Revenue Service Act.
3. The Revenue Administration and Tax Authorities Powers Bill
4. The Nigeria Tax Act, which consolidates income and transaction tax laws.
President Akpabio underscored the importance of public input during the legislative process.
He said, “The public hearing will involve experts, governors, traditional rulers, and other stakeholders. At the end of the process, the Senate will ensure these reforms benefit Nigerians and strengthen the nation’s economy.”
The bills were originally submitted to the National Assembly by President Bola Tinubu on September 3, following recommendations from the Presidential Committee on Fiscal and Tax Reforms led by Taiwo Oyedele. While some stakeholders had earlier called for wider consultation, Tinubu encouraged the legislative process to move forward, ensuring public participation would occur during the hearing stage.
The proposed reforms are seen as a critical step towards addressing Nigeria’s fiscal challenges and creating a more sustainable revenue generation framework.