The Nigerian Senate has passed the contentious Tax Reform Bills proposed by President Bola Tinubu during a plenary session on Thursday.
The bills, presented by Senate Leader Opeyemi Bamidele, aim to overhaul the country’s tax system and stimulate economic growth.
Before the passage, lawmakers convened a closed-door session starting at 11:43 AM and lasting over an hour. This measure was taken to prevent a repeat of the discord witnessed during Wednesday’s session, when some senators protested against the entry of the President’s Tax Team, led by Federal Inland Revenue Service (FIRS) Chairman Zacch Adedeji and presidential tax consultants, to address the Senate.
In his lead debate, Bamidele explained that the bill consists of 43 clauses across six parts. He highlighted provisions to protect small businesses, exempt the poor from tax payments, and reduce corporate tax from 30% to 25%. Urging support from his colleagues, Bamidele described the legislation as critical for driving Nigeria’s economic growth.
“This bill should be seen as the necessary legislation needed to propel the Nigerian economy forward,” Bamidele emphasized, advocating for the second reading.
The session’s order paper included four distinct Tax Reform Bills, all sponsored by Senate Leader Opeyemi Bamidele of the All Progressives Congress (APC), Ekiti Central. The bills are:
- A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud: This bill aims to harmonize, coordinate, and resolve disputes in revenue administration across Nigeria (SB. 583).
- A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, 2007, and Enact the Nigeria Revenue Service (Establishment) Act: The proposed legislation seeks to establish the Nigeria Revenue Service with enhanced powers for revenue collection and accountability (SB. 584).
- A Bill for an Act to Provide for the Assessment, Collection, and Accounting of Revenue Across Federal, State, and Local Governments: This bill defines the powers and responsibilities of tax authorities nationwide (SB. 585).
- A Bill for an Act to Repeal Certain Taxation Laws and Consolidate the Legal Frameworks Relating to Taxation: This bill proposes a comprehensive Nigeria Tax Act covering income, transactions, and instruments taxation (SB. 586).
Despite its eventual approval, the bills sparked debate. Senator Ali Ndume (APC, Borno South) opposed the legislation, citing insufficient consultations and unresolved issues with Value Added Tax (VAT) and derivation.
“I am not against reforms, but the timing is wrong. There are constitutional issues, including derivation, that need to be addressed first,” Ndume argued, calling for the withdrawal of the bill until further input is gathered from governors, the National Executive Council, and traditional rulers.
Conversely, Senators Seraike Dickson and the Chairman of the Senate Committee on Finance endorsed the bills, urging swift action to advance the reforms.
The Tax Reform Bills were eventually passed for a second reading after Senate President Godswill Akpabio ruled in favor of the majority vote.
