Governors back revised tax reform bills, Senate to pass after recess
Governors across Nigeria have endorsed the revised tax reform bills recently passed by the House of Representatives, confirming alignment with the Federal Government on the matter.
Nasarawa State Governor, Abdullahi Sule, disclosed this during a media parley in Abuja, stating that the bills passed on March 18 reflect the adjustments proposed by the governors after raising concerns about initial provisions—particularly the planned increase in Value Added Tax (VAT) from 7.5% to 15% over five years.
Governor Sule revealed that President Bola Tinubu demonstrated leadership by listening to governors’ grievances and allowed them to submit amendments. “The adjustments made by the governors are exactly what is now contained in the bills passed by the House,” Sule noted.
Initially, some northern governors opposed the original bills and had requested their withdrawal. However, the President urged them to present their concerns at the public hearing instead.
Senate Leader Opeyemi Bamidele, speaking in Ado-Ekiti, announced that the Senate would consider and likely pass the bills after its recess, adding that the legislation will transform Nigeria’s fiscal landscape. Bamidele emphasized that the reforms aim to correct inequality in the current tax structure and provide relief for low-income earners and small businesses.
Under the proposed changes:
Individuals earning N1 million or less annually will be exempt from income tax.
Businesses with a capital base of N50 million or less will enjoy tax exemptions.
VAT will no longer apply to essential items such as food, education, healthcare, and transport.
The tax-to-GDP ratio is projected to increase to 27.5% in 2025 and 25% in 2026, aligning with international standards.
Bamidele also hinted at an impending constitutional amendment aimed at enhancing governance, promoting social equity, and boosting foreign investment. He highlighted recent legislative efforts such as the amended National Social Investment Programme Agency Act, which now ensures more coordinated and sustainable poverty alleviation efforts.
He reaffirmed the Senate’s commitment to deepening reforms that encourage inclusive economic growth and improve the quality of life for all Nigerians.
