Tax bills passage, COVID-19 debt payment… business stories to track this week

The key business stories to track this week, focusing on Nigeria’s tax reform bills and COVID-19 debt repayment developments:

Tax Reform Bills Near Final Approval

Nigeria’s Senate has passed four major tax reform bills aimed at boosting government revenue and improving fiscal efficiency. These bills propose increasing the Value Added Tax (VAT) from 7.5% to 12.5% starting next year and transferring fiscal duties like royalty and petroleum profit tax collection to the newly proposed Nigeria Revenue Service. Despite facing criticism and resistance from members of President Bola Tinubu’s own All Progressives Congress, especially over fears of worsening the country’s economic hardship, the Senate’s approval is a key victory for the administration. 

The House of Representatives had passed the bills in March, and both chambers must now reconcile their versions before forwarding them to President Tinubu for final approval.

COVID-19 Debt Repayment Plans

The Nigerian government is expected to announce a comprehensive plan this week to address the repayment of COVID-19-related debts. These debts have been a significant concern for the country’s fiscal health, and the government aims to implement strategies to manage and mitigate the impact on the economy.