House of Representatives passes Tinubu’s tax reform bills

Kunle Sanni

The House of Representatives has approved four key tax reform bills proposed by President Bola Ahmed Tinubu, marking a significant step in the administration’s efforts to overhaul Nigeria’s tax system.

The bills, adopted following the consideration of a report by the House’s special committee, aim to streamline tax collection, enhance revenue administration, and establish new regulatory structures.

One of the bills seeks to establish a legal framework for the assessment, collection, and accounting of revenue at federal, state, and local government levels while defining the powers of tax authorities. Another bill repeals the Federal Inland Revenue Service (Establishment) Act, 2007, and replaces it with the Nigeria Revenue Service (Establishment) Bill, which will oversee tax assessment and collection nationwide.

In addition, the House approved a bill to create a Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud to resolve tax disputes and improve coordination among revenue agencies.

The fourth bill consolidates existing tax laws into the Nigeria Tax Act, covering the taxation of income, transactions, and financial instruments.

President Tinubu’s tax bills are part of a broader effort to modernize Nigeria’s tax system, improve revenue generation, and simplify tax administration.

The reforms stem from recommendations by the Presidential Committee on Fiscal Policy and Tax Reforms, established in 2023 to address inefficiencies in the tax system, reduce multiple taxation, and enhance compliance.