Second Reading of Tax Reform Bills Approved by Reps
On February 12, 2025, the Nigerian House of Representatives advanced four significant tax reform bills to their second reading. These bills, transmitted by President Bola Tinubu in 2024, aim to overhaul the nation’s tax system.
The four bills under consideration are:
- Nigeria Tax Bill 2024
- Tax Administration Bill
- Nigeria Revenue Service Establishment Bill
- Joint Revenue Board Establishment Bill
The session, presided over by Speaker Tajudeen Abbas, featured an extensive debate lasting over four hours. Lawmakers expressed both support and reservations regarding various aspects of the proposed legislation. Concerns were raised about potential conflicts with the 1999 Constitution and the implications for state-level taxation.
The Majority Leader, Julius Ihonvbere, addressed these concerns by highlighting consultations with the Nigerian Governors’ Forum and other stakeholders. He emphasized that the bills include provisions such as tax exemptions for low-income earners, aiming to create a more equitable tax system.
Following the debate, the House consolidated the four bills and unanimously passed them for a second reading. The legislation has been referred to the House Committee on Finance for further scrutiny and will be subjected to a public hearing to gather input from various stakeholders.