The Nigerian Senate has passed two of President Bola Tinubu’s four proposed tax reform bills, marking a significant milestone in the country’s efforts to overhaul its tax administration system. According to a 9am News report, the approved bills include the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill.
The Senate’s decision followed Tuesday’s postponed session, which allowed lawmakers time to address contentious provisions in the bills. Notably, the Senate rejected a proposal to increase the Value-Added Tax (VAT) rate from 7.5% to 10%, citing concerns about the rising cost of living in the country.
President Tinubu had submitted the four tax reform bills to the National Assembly in October 2024 as part of his broader fiscal reform agenda aimed at boosting revenue collection and improving public finance management.
The bills were adopted after a two-hour review of the ad hoc committee report led by Senator Sani Musa (Niger East). The Senate session concluded around 5:30 p.m. with a majority voice vote.
Senate President Godswill Akpabio praised lawmakers for their cooperation and commitment, stating:
“These bills will add immense value to governance and transform the way taxes are collected and distributed in Nigeria. We hope they will revolutionize tax administration. I thank all senators for their sacrifices in producing a document that will stand the test of time for the collective good of Nigerians.”
Akpabio added that the Senate would complete deliberations on the remaining two tax bills on Thursday, even if it requires extended hours.
Deputy Senate President Barau Jibrin also commended his colleagues for resolving disagreements over sensitive issues, highlighting the importance of stakeholder engagement.
“It’s normal to disagree to agree, especially on such sensitive matters. The Committee on Finance and the Committee of Elders deserve special commendation,” Jibrin said.
The House of Representatives had earlier passed all four tax bills. With the Senate’s concurrence on two, the stage is set for the remaining bills to be finalized and all legislation transmitted to President Tinubu for assent.
This legislative progress is seen as critical for Nigeria’s efforts to improve fiscal discipline, widen the tax base, and strengthen revenue generation.
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