The Chairman of the Senate Committee on Finance, Senator Sani Musa, says that the newly signed tax reform laws reflect the true aspirations of Nigerians and are the product of broad consultations, especially with stakeholders who initially opposed the reforms.
Addressing journalists at the signing, Sen. Musa acknowledged the initial public backlash—particularly from the northern part of Nigeria—but said the National Assembly approached the task with balance and diligence.
“When he brought these bills to the National Assembly, we know the uproar that those bills attracted all over the country, especially in the northern part of the country; and we looked at those bills carefully.
We had stakeholder consultations even with those who were really kicking against these bills. We sat with them; we listened to them; we took what they brought, and we also gave them what we think about as a nation so that this country can get something out of what we have done.
With the consultations and the painstaking nature of the legislative processes that we’ve taken, I believe we brought out bills that seek the aspirations of Nigerians.
And what are those aspirations? Just as has been highlighted by the Chairman of the Presidential Task Force, we consider the less privileged in terms of earnings and see that we don’t add burdens on them,” Sen. Musa explained.
The senator noted that one of the significant breakthroughs of the legislative process was the harmonisation of Nigeria’s fragmented and duplicative tax system.
“You will also recall that in this country, sometimes we have more than about 72 or three different kinds of taxes; and all those taxes have been harmonised right from the local government, state, and national levels,” he said.
According to the Chairman of the Senate Committee on Finance, the review also extended to vital sectors, such as oil and gas and the Export Processing Zones, ensuring the laws supported industrial growth and competitiveness.
“We also looked at how the Export Processing Zones operate, especially where it will add comparative advantage to our local industrialists,” Sen. Musa added.
Mission Once Impossible
For his part, the Chairman of the House of Representatives’ Committee on Finance, Hon. James Abiodun Faleke, described the passage of the bills as a “mission once impossible” made successful through national cooperation.
Hon. Faleke commended the efforts of lawmakers, governors, and the Nigerian public for what he described as a united effort to overhaul the country’s tax regime.
“When a tax reform was brought in the House, it was like a mission impossible. But we thank God for the cooperation of all Nigerians, including the governors and, of course, particularly the House of Representatives.
I want to express appreciation to Mr Speaker for allowing us to take our time to do the needful,” said Hon. Faleke, stressing that the reforms do not introduce new tax burdens but rather expand the efficiency of collection and plug leakages.
…And then, of course, it gives the Nigerian Revenue Service the capacity to use software, ICT, so that all of us will be in the tax net—the majority of us—so that we can have a GDP to tax [ratio] higher than what it is now,” he said.
The presidential assent to the bills was witnessed by the Senate President, the Speaker of the House of Representatives, the Senate Majority Leader, the House of Representatives’ Majority Leader, the Chairman of the Senate Committee on Finance, and his House of Representatives’ counterpart.
The Chairman of the Governors’ Forum, Abdulrahman Abdulrazaq of Kwara State; the Chairman of the Progressive Governors’ Forum, Gov. Hope Uzodinma of Imo State; the Finance Minister and Coordinating Minister of the Economy, Mr Wale Edun; and the Attorney General of the Federation, Lateef Fagbemi, were also at the ceremony.
A Breakdown of the 4 Bills
1️⃣ The Nigerian Tax Bill (Ease of Doing Business) aims to consolidate Nigeria’s fragmented tax laws into a harmonised statute.
“By reducing the multiplicity of taxes and eliminating duplication, the bill will enhance the ease of doing business, reduce taxpayer compliance burdens, and create a more predictable fiscal environment,” said the Presidency in a statement.
2️⃣ The Nigerian Tax Administration Bill will establish a uniform legal and operational framework for tax administration across federal, state, and local governments.
3️⃣ The Nigerian Revenue Service (Establishment) Bill repeals the current Federal Inland Revenue Service Act and creates a more autonomous and performance-driven national revenue agency— the Nigerian Revenue Service (NRS).
It defines the NRS’s expanded mandate, including non-tax revenue collection, and lays out transparency, accountability, and efficiency mechanisms.
4️⃣ The Joint Revenue Board (Establishment) Bill establishes a formal governance structure to facilitate cooperation among revenue authorities at all levels of government. It introduces essential oversight mechanisms, including establishing a Tax Appeal Tribunal and an Office of the Tax Ombudsman.