The Senate on Thursday approved the second reading of tax reform bills submitted by President Bola Tinubu in October 2024.
The approval came after a debate among lawmakers, followed by the referral of the bills to the Committee on Finance, which was tasked to report back within six weeks.
Before the debate, the senators held a closed-door session lasting about an hour. Upon their return, Senate Leader Opeyemi Bamidele (APC, Ekiti Central) introduced the bills and led the discussion.
The proposed tax reforms include four bills: the Nigeria Tax Bill 2024, aimed at providing a fiscal framework for taxation; the Tax Administration Bill, designed to establish a legal framework for all taxes and reduce disputes; the Nigeria Revenue Service Establishment Bill, which seeks to replace the Federal Inland Revenue Service Act with the Nigeria Revenue Service; and the Joint Revenue Board Establishment Bill, which proposes creating a tax tribunal and ombudsman.
Bamidele described the reforms as a significant overhaul of Nigeria’s tax system, aiming to simplify tax processes, reduce burdens on small businesses, and streamline tax collection.
“The bills are designed to ensure uniformity in tax administration across the country, eliminate double taxation, encourage private sector investment in critical industries, and increase individual disposable incomes through targeted tax exemptions,” he said.
Key proposals include exempting individuals earning at or below the minimum wage from P.A.Y.E. deductions, exempting small businesses with annual turnovers of ₦50 million or less from taxes, and reducing company income tax from 30% to 25% by 2026.
The bills gained support from lawmakers such as Senators Sani Musa (APC, Niger East), Seriake Dickson (PDP, Bayelsa West), and Tahir Mongunu (APC, Borno North). However, Senator Ali Ndume (APC, Borno South) raised concerns about the timing and issues related to derivation and VAT, suggesting the bills be temporarily shelved for further consultation.
Despite Ndume’s reservations, Senate President Godswill Akpabio put the matter to a voice vote, and the majority supported the bills, prompting Akpabio to affirm their passage with his gavel.
