Senate Approves Final Tax Reform Bills, Completes Comprehensive Overhaul of Nigeria’s Tax System
Abuja, Nigeria – May 8, 2025
The Nigerian Senate on Thursday passed the final two tax reform bills submitted by President Bola Ahmed Tinubu, completing a major four-bill legislative package aimed at overhauling the country’s tax system.
The newly approved bills—the Nigeria Tax Administration Bill, 2025 and the Nigeria Tax Bill, 2025—follow the passage on Wednesday of the Nigeria Revenue Service (Establishment) Bill, 2025 and the Joint Revenue Board (Establishment) Bill, 2025.
Together, the four bills represent a sweeping reform of Nigeria’s tax architecture. They repeal outdated laws, streamline tax administration across federal, state, and local governments, and establish critical institutions including a Joint Revenue Board, a Tax Appeal Tribunal, and the Office of the Tax Ombud.
The legislation aims to enhance transparency, boost compliance, and improve tax collection nationwide.
Senator Sani Musa, Chairman of the Senate Committee on Finance, presented detailed reports on each bill. The committee carried out extensive consultations and addressed contentious issues, most notably proposals to increase the Value Added Tax (VAT) rate. The Senate ultimately voted to retain the current 7.5% VAT rate, rejecting a proposed hike to 10%.
Following the passage, Senate President Godswill Akpabio applauded lawmakers for their “rigorous engagement and commitment to national development.” He also called for continued observation and input to refine the tax framework further.
A harmonization committee chaired by Senator Yahaya Abdullahi has been tasked with aligning the newly passed bills with existing tax legislation to ensure a smooth implementation process.
Analysts expect the reforms to significantly strengthen Nigeria’s tax institutions and foster economic growth by broadening the tax base and increasing government revenue.