The tax reform bills proposed by President Bola Tinubu have successfully passed the second reading at the House of Representatives.
The four bills — “Nigeria Tax Bill,” the “Tax Administration Bill,” the “Joint Revenue Board Establishment Bill,” and the “Nigeria Revenue Service Bill” — cleared the second reading on Wednesday following an extensive debate by lawmakers.
On October 3, Tinubu urged the National Assembly to approve the tax reform bills, which were later passed for a second reading by the Senate in November.
THE DEBATE
Julius Ihonvbere, the majority leader, led the debate on Wednesday, stating that the bills aim to overhaul Nigeria’s outdated tax laws.
He assured the public that the reforms would benefit ordinary Nigerians without placing undue tax burdens on the poor.
Ali Isa, a senator from Gombe State, mentioned that government consultations had informed Nigerians and stakeholders, leading to widespread support for the proposed laws.
However, he raised concerns about Section 146 of the bill, which suggests a gradual increase in value-added tax (VAT). He warned that this might result in higher prices for basic goods.
Bamidele Salam, a lawmaker from Osun State, pointed out that although reforms may be difficult, they are necessary for development.
He praised Tinubu for pushing the reforms, calling them essential for addressing overlapping and conflicting tax laws.
Adedeji Olajide, a lawmaker from Oyo State, emphasized that modernizing Nigeria’s tax system is key to the country’s progress.
“Reforming our taxation law is the right way to go. This is what we need to move our country to the next level,” he said.
Sada Soli from Katsina State voiced concerns about ambiguity in parts of the Tax Administration Bill, especially regarding VAT derivation.
However, Babajimi Benson from Lagos State disagreed, stating that the issue of derivation had already been addressed by proposals from the governors.
“I don’t think anybody has any misgivings about that anymore,” he said.
Nnolim Nnaji from Enugu raised concerns about how the tax revenue would be used, emphasizing that it should be invested in social amenities benefiting Nigerians.
Ademorin Kuye from Lagos highlighted the importance of supporting the reforms to enhance Nigeria’s global competitiveness, while George Ozodinobi from Anambra State praised the president for his courage in pushing the bills despite opposition.
SUPPORT GROWS DESPITE INITIAL OPPOSITION
Kingsley Chinda, the minority leader, acknowledged that any ambiguities in the bill would be clarified at the committee stage.
James Faleke, chairman of the finance committee, stated that while the introduction of the bills sparked strong opposition, the consultations led by Tajudeen Abbas, the Speaker of the House, helped secure broader support.
Faleke assured that all concerns raised by lawmakers would be addressed.
The bills were unanimously passed through a voice vote and referred to the committee on finance for further review.
Initially, the bills faced opposition from the National Economic Council (NEC) and northern governors, who argued that the proposed laws could negatively affect the region’s interests.
They called on the National Assembly to reject the bills, demanding fair and equitable implementation across all regions.
However, in January, the Nigeria Governors’ Forum (NGF) endorsed the bills after agreeing on an “equitable” VAT-sharing formula.
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