House of Reps Votes in Favour of Tax Reform Bills After Months of Debate

The House of Representatives has passed four major tax reform bills aimed at overhauling Nigeria’s tax administration after months of debate and stakeholder consultations.

The bills transmitted by President Bola Tinubu in October 2024 were approved on the third reading despite resistance from some northern lawmakers.

The reforms are expected to restructure tax collection improve assessment mechanisms and streamline dispute resolution.

House Leader Julius Ihonvbere moved the motion for passage during Tuesday’s plenary session presided over by Speaker Tajudeen Abbas.

Sweeping Changes to Nigeria’s Tax System

One of the bills seeks to repeal the Federal Inland Revenue Service Act and replace it with the Nigeria Revenue Service granting it expanded powers for tax administration. Another bill establishes a Joint Revenue Board a Tax Appeal Tribunal and a Tax Ombudsman to strengthen dispute resolution and improve transparency in tax enforcement.

The legislative process had been delayed for three months due to extensive public hearings and consultations with industry stakeholders. Lawmakers debated the most effective approach to reform tax laws to enhance compliance and drive government revenue.

Opposition and Regional Divide

Despite broad support northern lawmakers opposed the reforms aligning with governors from the region who called for further consultations before passage. They argued that the proposed changes would centralize tax administration in a way that could disadvantage states.

However the majority of lawmakers voted in favour of the bills citing the urgent need for a more efficient tax system to support economic growth and reduce revenue leakages.

Looking Ahead

With the House of Representatives approving the bills attention now shifts to the Senate which must also pass them before they can be signed into law. If enacted the reforms will introduce a more structured tax administration framework positioning Nigeria for improved revenue generation and economic stability.