Breaking: Senate Passes Tinubu's Tax Reform Bills, Akpabio Speaks

• The Senate has passed two out of four major tax reform bills, marking a significant milestone in the ongoing overhaul of the nation’s tax administration framework
• The bills seek to repeal the Federal Inland Revenue Service (Establishment) Act and to establish the Joint Revenue Board (Establishment) Bill 2025 along with the Nigeria Revenue Service Bill 2025
• Both were passed following a clause-by-clause consideration during the Committee of the Whole and their subsequent third reading on the Senate floor

Legit.ng journalist Ridwan Adeola Yusuf has over 9 years of experience covering public affairs and governance.

FCT, Abuja - The Senate on Wednesday, May 7, passed two out of four major tax reform bills proposed by President Bola Tinubu.

As reported by The Cable, the upper chamber, meanwhile, rejected a proposal to increase the value-added tax (VAT) to 10 percent, opting to retain the current rate at 7.5 percent.

Premium Times also noted the update.

The bill allows VAT input claims on fixed assets, overhead costs, and administrative services.

Senator Mohammed Sani Musa (APC – Niger East), the Chairman of the Senate Committee on Finance, presented the report.

The four Bills are: Joint Revenue Board (Establishment) Bill, 2025; Nigeria Revenue Service (Establishment) Bill, 2025; Nigeria Tax Administration Bill, 2025; and Nigeria Tax Bill, 2025.

However, the two Tax Reform Bills passed by the Senate are: the Nigeria Revenue Service (Establishment) Bill, 2025, and the Nigeria Tax Administration Bill, 2025.

The four bills were referred to the Senate Committee on Finance for further legislative action after their second reading by the Senate on Thursday, November 28, 2024.

Widespread controversy surrounding the Bills prompted the Senate to suspend legislative proceedings, including a planned public hearing. However, after extensive consultations with key stakeholders and the Nigeria Governors' Forum, the Senate amended the contentious clauses related to Value Added Tax (VAT) collection and administration, addressing concerns that had sparked intense debate.

Tax reform bills' passage: Akpabio speaks

Meanwhile, Senate President Godswill Akpabio commended the progress and said the reforms would strengthen governance and improve revenue collection.

Akpabio said:

“These bills will add immense value to governance and transform how taxes are collected and shared in Nigeria."

He also said the senate is ready to extend its sitting to conclude work on the remaining bills.

He added:

“We are committed to concluding the outstanding bills tomorrow, even if we have to stay here until 10 pm."

Tax reform bills: CSOs praise Senate, Reps leadership

Earlier, Legit.ng reported that the Situation Room on Economic Reforms, a coalition of 100 civil society organisations in Nigeria, commended the National Assembly Committees on Finance for conducting what it described as a fair and transparent public hearing on tax reform bills.

Barrister Johnson Alli, a representative of the coalition, said the inclusive approach adopted by the committees demonstrated their commitment to ensuring that Nigerians’ voices were heard.

Alli specifically lauded Senate Finance Committee Chairman Senator Musa and House of Representatives Finance Committee Chairman James Faleke for their leadership, highlighting their efforts in fostering constructive dialogue between stakeholders and lawmakers.

Source: Legit.ng