In a significant step towards overhauling Nigeria’s fiscal framework, the National Assembly has transmitted the landmark tax reform bills to President Bola Tinubu for assent, marking a critical phase in the implementation of the administration’s Renewed Hope economic agenda.
Chairman of the Senate Committee on Media and Public Affairs, Senator YemiAdaramodu, confirmed the transmission during a press briefing at the National Assembly complex yesterday.
He disclosed that the harmonisation process between the Senate and the House of Representatives had been concluded, paving the way for the final legislative action.
“Yes, the bill has now been transmitted. It is out of our hands and on its way to the executive,” Adaramodu stated.
The legislative package comprises four key bills: the Joint Revenue Board (Establishment) Bill, the Nigeria Revenue Service (Establishment) Bill, the Nigeria Tax Administration Bill, and the Nigeria Tax Bill. Collectively, they aim to modernise tax collection processes, broaden the tax base, and enhance coordination across all levels of government.
Originally submitted in November 2024, the bills underwent scrutiny, multiple revisions, and intense negotiations before being passed by both chambers. Adaramoduemphasised the necessity of the extended legislative process.
He said: “Tax legislation of this magnitude requires detailed examination. Our legal departments had to ensure alignment with existing statutes before the final transmission to the Presidency. It’s not something that happens in two or three days,” he explained.
He noted the role of joint committees, legal review teams, and document aggregation in shaping the final drafts.
Following the harmonisation, the final documents were signed by the Senate President and the Speaker of the House before being sent to the Presidency.
Just last week, Senate President GodswillAkpabio credited the eventual passage of the bills to what he described as “national interest, inclusive legislative engagement, and strategic leadership.”
Among the more contentious provisions was an initial proposal allowing tax-generating states to retain 60 per cent of Value Added Tax (VAT) revenue. The clause triggered fierce opposition, especially from lawmakers representing Northern states who raised concerns over regional economic disparities.
A compromise was later reached, reducing the retention rate to 30 per cent and replacing the term “derivation” with the more neutral “place of consumption.”
The reform process also faced pushback from state governors and divisions within the legislature. Nonetheless, Akpabio lauded the eventual consensus and praised House Speaker Tajudeen Abbas for uniting younger legislators around the national cause.
He said, “We must commend the courage of our governors who, despite initial resistance, accepted the revised framework in the spirit of unity.”
If signed into law, the bills will usher in one of the most sweeping overhauls of Nigeria’s tax and revenue administration systems in decades—streamlining tax oversight, promoting fiscal federalism, and plugging longstanding leakages across government revenue channels.
