President Bola Tinubu is set to sign four major tax reform bills into law on Thursday, marking a significant milestone in Nigeria’s efforts to modernize its complex tax system and improve revenue generation. The signing ceremony will take place at the Presidential Villa in Abuja and will be attended by top government officials, including the Senate President, Speaker of the House of Representatives, finance committee leaders, and key ministers.
The four bills are the;
- Nigeria Tax Bill (Ease of Doing Business).
- Nigeria Tax Administration Bill.
- Nigeria Revenue Service (Establishment) Bill.
- Joint Revenue Board (Establishment) Bill.
These bills were passed by the National Assembly after months of consultations with business groups, tax experts, and other stakeholders.
Simplifying Tax Laws and Boosting Compliance
One of the main goals of the Nigeria Tax Bill is to consolidate Nigeria’s fragmented tax laws into a single, harmonized statute. By reducing the multiplicity of taxes and eliminating duplication, the bill will make it easier for businesses to comply with tax regulations and create a more predictable fiscal environment.
This simplification is expected to improve Nigeria’s investment climate by reducing bureaucratic hurdles and making the tax process more transparent and efficient.
Uniform Tax Administration Across All Levels
The Nigeria Tax Administration Bill will establish a uniform legal and operational framework for tax collection and administration across federal, state, and local governments. This is aimed at addressing the frequent disputes and overlapping mandates between different tax authorities, which have long hindered effective revenue collection.
By creating clear roles and responsibilities, the bill seeks to improve coordination and reduce conflicts among tax agencies, ultimately leading to better compliance and increased government revenue.
Creating a More Autonomous Revenue Agency
The Nigeria Revenue Service (Establishment) Bill repeals the existing Federal Inland Revenue Service Act and proposes the creation of a more autonomous and performance-driven national revenue agency called the Nigeria Revenue Service (NRS). The new agency will have an expanded mandate that includes collecting both tax and non-tax revenues.
The bill also introduces stricter rules on transparency, accountability, and efficiency to ensure the agency operates with professionalism and integrity, reducing corruption and leakages in revenue collection.
Strengthening Cooperation and Oversight
The Joint Revenue Board (Establishment) Bill establishes a formal structure for cooperation between revenue authorities at all levels of government. It also introduces important oversight mechanisms, including the creation of a Tax Appeal Tribunal and an Office of the Tax Ombudsman, which will handle taxpayer complaints and resolve disputes.
These measures are expected to build trust between taxpayers and authorities, encouraging voluntary compliance and reducing litigation.
A Turning Point for Nigeria’s Economy
According to the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the bills represent a transformative step for Nigeria’s fiscal and revenue framework.
“When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments,” Onanuga said.
This overhaul is part of President Tinubu’s broader economic reforms, which include subsidy removal and exchange rate liberalization, aimed at stabilizing the economy and rebuilding public finances.
High-Profile Attendees for the Signing Ceremony
The signing event will be witnessed by key figures from the executive and legislative branches, including:
- Senate President
- Speaker of the House of Representatives
- Senate Majority Leader
- House Majority Leader
- Chairpersons of the Senate and House Finance Committees
- Chairman of the Nigeria Governors Forum
- Chairman of the Progressive Governors Forum
- Minister of Finance and Coordinating Minister of the Economy, Wale Edun
- Attorney General of the Federation, Lateef Fagbemi
Their presence underscores the national importance of these reforms.
Conclusion
The signing of these four tax reform bills marks a historic moment in Nigeria’s fiscal policy. By simplifying tax laws, creating a unified administration system, establishing a more autonomous revenue agency, and enhancing cooperation and oversight, the government aims to increase revenue, improve the ease of doing business, and attract investment.
If implemented effectively, these reforms could transform Nigeria’s tax landscape, helping to stabilize the economy and support sustainable development. The success of this ambitious agenda will depend on strong enforcement, continued stakeholder engagement, and public trust in the new system.
