𝐀𝐥𝐥 𝐭𝐡𝐞 𝐭𝐚𝐱 𝐫𝐞𝐟𝐨𝐫𝐦 𝐛𝐢𝐥𝐥𝐬 𝐡𝐚𝐯𝐞 𝐧𝐨𝐰 𝐛𝐞𝐞𝐧 𝐩𝐚𝐬𝐬𝐞𝐝 𝐛𝐲 𝐭𝐡𝐞 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐬𝐬𝐞𝐦𝐛𝐥𝐲

As of May 8, 2025, the Nigerian National Assembly has passed all four major tax reform bills proposed by President Bola Tinubu. These bills aim to overhaul Nigeria’s tax system to enhance revenue generation and economic growth.

Key Provisions of the Tax Reform Bills

1. Nigeria Tax Administration Bill (HB.1756)
   Establishes a comprehensive framework for the assessment, collection, and accounting of revenue accruing to the Federation, Federal, States, and Local Governments. It also prescribes the powers and functions of tax authorities.
2. Nigeria Revenue Service Establishment Bill (HB.1757)
   Repeals the Federal Inland Revenue Service (Establishment) Act, No.13, 2007, and enacts the Nigeria Revenue Service (NRS), charged with powers of assessment, collection, and accounting for revenue accruable to the Government of the Federation.
3. Joint Revenue Board and Tax Appeal Tribunal Bill (HB.1758)
   Establishes the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman for the harmonization, coordination, and settlement of disputes arising from revenue administration in Nigeria.
4. Nigeria Tax Act (HB.1759)
   Repeals certain acts on taxation and consolidates the legal frameworks relating to taxation, providing for the taxation of income, transactions, and instruments.

Legislative Process and Amendments

The House of Representatives passed the bills after extensive consultations and deliberations. The Committee on Finance conducted public hearings with over 80 key stakeholders and held an eight-day retreat to debate each clause. The bills underwent several amendments, including:

• Value Added Tax (VAT): The proposed increase to 12.5% was rejected; instead, the current rate of 7.5% was maintained. 
• Minimum Wage Earners: Excluded from income tax to ease the tax burden on lower-income earners. 
• VAT Distribution Formula: Adjusted to 50% equality, 20% population, and 30% consumption, aligning with recommendations from the Nigerian Governors’ Forum. 
• Petroleum Profit Tax: Replaced with a 30% corporate tax rate on gains from oil industry operations. 
• Global Minimum Tax: Introduced for multinational companies with turnover of at least $970.8 million. 
• Domestic Business Tax Threshold: Doubled to 50 billion naira ($32.66 million). 

The Senate has now passed the bills, and they are awaiting President Tinubu’s assent to become law. Implementation is expected to begin on July 1, 2025.