Strong indications suggest that the Tax Reform Bills currently before the Senate and the House of Representatives are on track for passage.
Progress in Deliberations
Senator Abba Moro, Minority Leader and Chairman of the Senate Ad-hoc Committee on Tax Reforms, confirmed after a closed-door meeting on Monday that the bills would soon be presented for public hearing and third reading. The meeting included critical stakeholders, such as the Attorney-General of the Federation, Lateef Fagbemi (SAN); Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji; Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele; and Revenue Mobilization Allocation and Fiscal Commission (RMAFC) Chairman, Dr. Mohammed Bello Shehu.
Senator Moro highlighted that agreements had been reached on previously contentious provisions. “We are committed to giving Nigerians tax laws that serve the nation’s interests. With all issues synthesized and resolutions reached, we expect a final framework soon,” he stated.
Stakeholder Consensus
FIRS Chairman Zacch Adedeji expressed optimism, noting that the “grey areas” had been addressed. “Discussions were constructive, and resolutions were made. With this progress, the bills are set for smooth passage into law,” Adedeji said.
Background on the Tax Reform Bills
The bills were initiated following President Bola Tinubu’s October 2024 submission of four tax reform proposals to the National Assembly. These include:
- Nigeria Tax Bill 2024: Establishing a comprehensive fiscal framework for taxation.
- Tax Administration Bill: Introducing a legal structure to streamline tax administration and reduce disputes.
- Nigeria Revenue Service Establishment Bill: Repealing the Federal Inland Revenue Service Act to establish the Nigeria Revenue Service.
- Joint Revenue Board Establishment Bill: Establishing a tax tribunal and ombudsman.
The reforms are based on recommendations by the Presidential Committee on Fiscal and Tax Reforms, chaired by Taiwo Oyedele.
Consultation and Legislative Process
Despite initial calls by the National Economic Council for broader consultations, President Tinubu insisted that the legislative process would provide sufficient avenues for public input, particularly during the public hearing stage. The bills passed their second reading in the Senate on November 28, 2024.
Conclusion
With substantial progress achieved in resolving disputes and gaining stakeholder support, the Tax Reform Bills are poised to usher in a new era of fiscal management in Nigeria, pending final legislative approval.
