Senate Passes Tax Reform Bills For Second Reading

The Nigerian Senate on Thursday passed four tax reform bills proposed by President Bola Ahmed Tinubu for second reading, advancing efforts to reshape the country’s taxation framework.

The bills, introduced by Senate Majority Leader, Opeyemi Bamidele, aim to simplify Nigeria’s tax landscape, reduce the burden on small businesses, and streamline tax collection processes.

During the debate, Bamidele highlighted that the reforms would eliminate double taxation and enhance revenue distribution, proposing that state governments receive 55 percent of Value Added Tax (VAT) revenue, up from 15 percent.

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“These bills will bring clarity to tax statutes, exempt salaries below the minimum wage, and address long-standing inefficiencies in tax administration,” he said.

Senators expressed mixed opinions on the reforms.

Bayelsa West Senator Seriake Dickson emphasized the need for a transparent taxation system and a shift from oil dependency.

However, Senator Ali Ndume of Borno South raised concerns about timing and constitutional challenges, suggesting further legislative work.

Countering Ndume, Chief Whip Tahir Monguno argued for the continuation of the legislative process.

“These bills will ease the tax burden on Nigerians and can be refined during public hearings.”

The bills were passed after Senate President Godswill Akpabio put them to a vote, following Tinubu’s October request for their consideration.

The reforms represent a significant step toward modernizing Nigeria’s revenue systems while balancing economic growth and fairness.