In a significant move aimed at overhauling Nigeria’s tax system, President Bola Tinubu has submitted four comprehensive tax reform bills to the National Assembly for consideration and approval. The bills, which were presented to both the Senate and House of Representatives, seek to restructure the country’s tax administration and enhance revenue collection.
The first of the proposed legislations, titled “The Nigeria Revenue Service (Establishment) Bill”, recommends the renaming of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS). In his letter, read by Senate President Godswill Akpabio during the plenary session, President Tinubu stated that the bill aims to establish a new legal framework for tax administration by repealing the existing Federal Inland Revenue Service Act of 2007. According to him, the new Nigeria Revenue Service will be responsible for assessing, collecting, and accounting for revenue generated for the federal government.
Another bill presented is “The Nigeria Tax Bill”, which seeks to create a consolidated fiscal framework for all taxation activities in Nigeria. This proposed legislation is expected to streamline the tax system, providing clarity and coherence in tax administration.
Additionally, the President submitted “The Nigeria Tax Administration Bill,” which aims to establish a clear and consistent legal framework for administering all tax laws in Nigeria. The bill is designed to facilitate ease of tax compliance, reduce disputes, and enhance revenue generation for the government.
The fourth bill, titled “The Joint Revenue Board (Establishment) Bill,” seeks to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman. This bill is intended to harmonize revenue administration, coordinate tax-related activities across various agencies, and provide an effective platform for resolving disputes arising from tax administration.
In his message to the National Assembly, President Tinubu emphasized that the proposed reforms are critical to Nigeria’s economic growth. He noted that if passed, the bills would improve taxpayer compliance, strengthen fiscal institutions, and promote a transparent fiscal regime. Tinubu also expressed confidence that the reform measures would attract investments, boost consumer spending, and ultimately stimulate economic growth in the country.
“The benefits of these bills to Nigeria’s economic landscape are substantial. They will encourage investments, boost consumer spending, and contribute to the overall growth of the Nigerian economy,” Tinubu stated in his communication to the federal parliament.
The proposed reforms, which underscore the administration’s commitment to revamping Nigeria’s tax system, are expected to undergo detailed legislative scrutiny in the coming weeks as the National Assembly reviews and deliberates on their provisions. If enacted, these bills will represent one of the most significant tax reforms in Nigeria’s recent history, positioning the country for a more efficient and transparent revenue administration system.
