The House of Representatives has commenced the review of four major tax reform bills submitted to the National Assembly by President Bola Tinubu in October 2024.
During Thursday’s plenary session, presided over by Speaker Tajudeen Abbas, the Chairman of the Committee on Finance, James Abiodun Faleke, formally presented the committee’s report, setting the stage for a clause-by-clause consideration of the proposed legislation.
The legislative process follows a three-day public hearing, during which stakeholders, industry experts, and policymakers provided insights on the potential impact of the reforms.
The House Committee on Finance also reviewed memoranda and recommendations before submitting its findings earlier this week.
Key Components of the Tax Reform Bills
The bills under review aim to streamline tax administration, enhance revenue collection, and consolidate Nigeria’s fiscal framework. The proposed laws include:
- The Revenue Collection and Administration Bill (HB.1756) – Seeks to establish a legal framework for the assessment, collection, and accounting of revenue accruing to the federal, state, and local governments, while clarifying the roles of tax authorities.
- The Nigeria Revenue Service Bill (HB.1757) – Proposes the repeal of the Federal Inland Revenue Service (FIRS) Act and the creation of the Nigeria Revenue Service (NRS) with expanded powers to assess, collect, and manage federal revenue.
- The Joint Revenue Board and Tax Appeal Tribunal Bill (HB.1758) – Aims to establish a Joint Revenue Board, a Tax Appeal Tribunal, and the Office of the Tax Ombud to harmonize tax administration and resolve revenue-related disputes.
- The Nigeria Tax Act (HB.1759) – Seeks to consolidate various tax laws into a unified legal framework for the taxation of income, transactions, and financial instruments, while repealing outdated tax regulations.
Implications for Tax Administration and Economic Growth
The Tinubu administration has made fiscal reform a priority, aiming to expand the tax base, reduce leakages, and improve efficiency in revenue collection.
The government has emphasized the need to ease compliance for businesses, eliminate multiple taxation and create a fairer tax system to enhance economic stability.
If passed, the bills will reshape Nigeria’s tax landscape, granting tax agencies more autonomy and enforcement powers while ensuring greater coordination between the federal, state and local governments.
Legislative Consideration Underway
As the House moves into committee deliberations, lawmakers are expected to fine-tune the provisions, balancing government revenue needs with the concerns of businesses and taxpayers.
While the reforms have received support from economic experts, some industry players have raised concerns over the potential burden on small businesses and enforcement mechanisms.
The outcome of the legislative process will determine the direction of Nigeria’s tax policy in the coming years, with stakeholders closely watching how the reforms will impact investment, economic growth and government revenue generation.
