The tax reform bills proposed by President Bola Tinubu have passed the second reading in the House of Representatives.
The four bills—the Nigeria Tax Bill, the Tax Administration Bill, the Joint Revenue Board Establishment Bill, and the Nigeria Revenue Service Bill—advanced on Wednesday following extensive debate among lawmakers.
On October 3, Tinubu urged the National Assembly to approve the tax reform bills, which the Senate passed for a second reading in November.
Leading Wednesday’s debate, Majority Leader Julius Ihonvbere said the bills aim to modernise Nigeria’s outdated tax laws. He assured the public that the reforms would benefit ordinary Nigerians without overburdening the poor with additional taxes.
Senator Ali Isa from Gombe State noted that government consultations had increased awareness and gained broad support for the reforms. However, he raised concerns about Section 146, which proposes a gradual increase in value-added tax (VAT), warning that it could lead to higher prices for essential goods.
Bamidele Salam from Osun State acknowledged that reforms can be difficult but are necessary for national development. He commended Tinubu for pushing the reforms, describing them as crucial to resolving overlapping and conflicting tax laws.
Adedeji Olajide from Oyo State emphasised the importance of modernising Nigeria’s tax system, stating, “Reforming our taxation law is the right way to go. This is what we need to move our country to the next level.”
However, Sada Soli from Katsina State raised concerns about ambiguity in the Tax Administration Bill, particularly regarding VAT derivation. In response, Babajimi Benson from Lagos State argued that the issue had already been resolved through proposals from the governors.
Nnolim Nnaji from Enugu State stressed the need for transparency in utilising tax revenues, insisting they should be directed towards social amenities for Nigerians.
Ademorin Kuye from Lagos State highlighted the necessity of supporting the reforms to enhance Nigeria’s global competitiveness, while George Ozodinobi from Anambra State praised Tinubu’s determination in advancing the bills despite opposition.
