The Nigerian Senate has passed two of President Bola Tinubu’s four proposed tax reform bills while rejecting an increase in the Value Added Tax (VAT) rate. The approved bills—the Nigeria Revenue Service (Establishment) Bill and the Joint Revenue Board (Establishment) Bill—were passed after extensive deliberations.
Senate President Godswill Akpabio announced the passage following a majority voice vote. He emphasized that the reforms would enhance tax administration and governance in Nigeria. The remaining two bills, the Nigeria Tax Administration Bill and the Nigeria Tax Bill, are expected to be considered on Thursday.
During the session, lawmakers debated a proposal to raise VAT from 7.5% to 10%, ultimately deciding to retain the current rate. The Senate also amended provisions allowing states to establish their own revenue tax boards and adjusted the percentage of total revenue allocated to the Nigeria Revenue Service.
Senator Sani Musa, Chairman of the Senate Committee on Finance, highlighted that the reforms aim to simplify tax compliance, stimulate economic growth, and boost investor confidence. He noted that over 64 organizations, including civil society groups, participated in public hearings and largely supported the changes.
The passage of these bills marks a significant step in Nigeria’s ongoing tax reform efforts, with lawmakers committed to finalizing the remaining legislation without delay. The harmonized versions will be forwarded to the President for assent.
