February 12, 2025
By Adedoja Adesoji
The House of Representatives has taken a significant step towards overhauling Nigeria’s tax system, passing four tax reform bills for second reading.
The bills, which were initially submitted by President Bola Tinubu last year, aim to harmonize tax administration, eliminate multiple taxation, expand the tax base, and establish an ombudsman for resolving tax disputes.
The four bills, namely the Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill, were merged into a single bill for streamlined consideration. After a lengthy debate, the House Leader, Prof. Julius Ihonvbere, emphasized the urgent need to modernize Nigeria’s outdated tax system
Lawmakers widely supported the bills, highlighting their potential to simplify taxes, reduce payroll taxes, remove taxes from basic necessities, and provide incentives for low-income earners.
However, some raised concerns about inconsistencies and ambiguities in certain clauses, warning they could lead to misinterpretation or abuse.
The House Speaker, Mr. Tajudeen Abbas, referred the bill to the Finance Committee for further legislative work, including a public hearing. Taiwo Oyedele, who leads Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms, expressed gratitude to the lawmakers for their robust debates and diligent consideration of the bills.
Oyedele stated, “We are grateful to the lawmakers for their robust debates and diligent consideration of the bills and look forward to continued engagement with the National Assembly and active participation in the public hearing process.”
The passage of the tax reform bills marks a significant milestone in Nigeria’s efforts to reform its tax system and promote economic growth.
