FCT, Abuja – The Nigerian Senate will pass President Bola Ahmed Tinubu’s tax reform bills on Wednesday, May 7, 2025.
President Tinubu forwarded the four bills, the Nigerian Tax Bill, Tax Administration Bill, Revenue Tax Board Bill, and Nigerian Revenue Service Establishment Bill to the senate months ago.
As reported by The Punch, Senator Godswill Akpabio-led senate postponed the passage for proper scrutiny and debate.
The tax bills were part of Tinubu’s efforts to reform the country’s fiscal policies and boost revenue generation.
The Senate has been put under pressure to approve the bill after the House of Representatives approved them two weeks ago.
According to Arise News, following the reps committee recommendations on VAT revenue distribution, the states’ share was increased to 55%, reducing the federal government’s share to 10%, while local governments retained 35%.
The committee also reversed one of the most contentious elements of the Nigeria Tax Bill – Section 146.
The section proposed a gradual increase in Value-Added Tax (VAT) from 7.5% to 12.5% between 2026 and 2029, with a further increase to 15% by 2030.
This proposal was later revised by the committee, keeping VAT at 7.5%—a decision the House approved.
The delay in the passage of the bills had raised concerns across the country.
After the passage of the bills at the Senate, a harmonised version will be transmitted to President Tinubu for final assent.
If signed into law, the reforms could significantly reshape Nigeria’s tax structure, revenue distribution, and fiscal policies.
Tinubu sends message to governors over tax reform.
Recall that President Tinubu commended the Nigerian Governors’ Forum (NGF) for throwing its weight behind the proposed tax reform bills currently at the national assembly.
After the NGF met with the presidential tax reform committee on Thursday, January 16, the governors announced their support for the bills and called for an “equitable” sharing formula for value-added tax (VAT).
The forum endorsed a VAT sharing formula of 50 percent based on equality, 30 percent on derivation, and 20 percent on population as opposed to the one proposed by the federal government.
Tinubu fires back at critics of tax reform bills.
President Tinubu reiterated his position on reforming the current tax system in Nigeria as he explained the importance of his tax reform bills.
The president explained that there is no going back on the proposed tax reform bills before the National Assembly.
Recall that there has been criticism against the bills, particularly from the northern elites, including the governors of the region.