Tinubu calls for legislative review of proposed Tax Reform Bills

Estimated reading time: 3 minutes

President Bola Tinubu has responded to the National Economic Council’s (NEC) recent recommendation that the proposed tax reform bills currently before the National Assembly be withdrawn for further consultation.

While he appreciates the input from the NEC—comprising Vice President Kashim Shettima and all 36 state governors—President Tinubu expressed belief that the legislative process underway should continue, providing an avenue for public input and adjustments without the need to withdraw the bills.

In a statement released by Special Adviser to the President on Information and Strategy, Bayo Onanuga, Tinubu affirmed his openness to further consultation and engagement with stakeholders.

He emphasised that the National Assembly hearings would allow for constructive contributions and potential revisions to address any reservations while the bills are under consideration.

The four bills, a product of the Presidential Committee on Tax and Fiscal Policy Reform established by President Tinubu in August 2023, are designed to modernize Nigeria’s tax framework and align it with global best practices.

After over a year of research and consultations across diverse sectors—including trade associations, professional bodies, governors, and the organised private sector—the committee crafted the bills to streamline tax administration, eliminate multiple taxation, and support a conducive environment for business and investment.

The highlights of the Tax Reform Bills include the Nigeria Tax Bill, which aims to eliminate multiple taxation and simplify tax obligations for businesses and individuals, enhancing Nigeria’s economic competitiveness and the Nigeria Tax Administration Bill (NTAB) which seeks to standardize tax administration across federal, state, and local levels, easing compliance and improving revenue collection for all tiers of government.

Other highlights are the Nigeria Revenue Service (Establishment) Bill which proposes re-establishing the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect its national mandate and the Joint Revenue Board Establishment Bill, which aims to create a Joint Revenue Board, replacing the Joint Tax Board, to oversee federal and state tax authorities and establish the Office of the Tax Ombudsman for taxpayer protection and dispute resolution.

The overarching goal of these reforms is to address longstanding issues of inefficiency and overlap in Nigeria’s tax administration.

By consolidating taxes like Company Income Tax, Personal Income Tax, Capital Gains Tax, and Value-Added Tax into a more unified structure, the proposed reforms seek to reduce administrative fragmentation and streamline operations.

President Tinubu emphasised the need to update Nigeria’s tax laws to align with national development objectives.

He assured that while differences in approach may exist, the need to modernize and coordinate tax laws is essential.

The administration, he reiterated, remains committed to engaging all relevant parties and respecting the recommendations of the NEC as the legislative process unfolds.