ABUJA/Nigeria: President Bola Tinubu has welcomed recommendations from the National Economic Council (NEC) to engage in further consultations on Nigeria’s tax reform bills but has declined to withdraw the bills currently under review by the National Assembly. Commending NEC members, especially Vice President Kashim Shettima and the 36 state governors, Tinubu acknowledged their valuable input but emphasised that the ongoing legislative process should be allowed to proceed uninterrupted.
In a statement by Bayo Onanuga, the Special Adviser to the President on Information & Strategy, Tinubu underscored that the legislative review underway provides ample opportunity for necessary adjustments, thus negating the need to retract the bills. Instead, he urged the NEC and other stakeholders to engage with the National Assembly to ensure the reforms reflect the country’s needs.
The tax reform bills, derived from the work of the Presidential Committee on Tax and Fiscal Policy Reform established in August 2023, aim to streamline and modernise Nigeria’s tax system, making it more conducive for business and investment. The Committee, which conducted consultations across Nigeria’s geopolitical zones, incorporated insights from various stakeholders, including trade associations, professional bodies, ministries, agencies, and the organised private sector.
These bills represent a significant restructuring of Nigeria’s tax laws and processes, and if passed, would introduce major changes in tax administration. Among the proposed legislation are:
- Nigeria Tax Bill: Aims to end multiple taxation and simplify tax obligations, enhancing Nigeria’s economic competitiveness.
- Nigeria Tax Administration Bill (NTAB): Proposes harmonisation of tax administration processes across federal, state, and local jurisdictions to simplify compliance and improve revenue collection.
- Nigeria Revenue Service (Establishment) Bill: Proposes the rebranding of the Federal Inland Revenue Service (FIRS) to Nigeria Revenue Service (NRS), reflecting its role as a nationwide revenue authority.
- Joint Revenue Board Establishment Bill: Seeks to replace the current Joint Tax Board with a Joint Revenue Board, which will include the Office of Tax Ombudsman to protect taxpayer rights and support dispute resolution.
These bills are expected to address longstanding issues of overlapping responsibilities and inefficiencies in Nigeria’s tax system, aligning it with global best practices. They aim to unify the administration of taxes such as Company Income Tax (CIT), Personal Income Tax (PIT), and Value-Added Tax (VAT) into a streamlined framework, reducing administrative fragmentation and fostering better coordination across federal, state, and local levels.
President Tinubu has reiterated his commitment to the objectives outlined by the Presidential Committee on Tax and Fiscal Policy Reform, noting that these reforms are integral to his agenda for repositioning Nigeria’s economy. He expressed confidence that continued dialogue with the NEC and the National Assembly would yield tax reforms that align with Nigeria’s developmental goals.
The President’s stance reaffirms his administration’s dedication to a modern, inclusive tax system that supports sustainable economic growth.
