Nigeria’s National Assembly has passed four major tax reform bills and is now preparing to forward them to President Bola Ahmed Tinubu for final approval.
The bills, originally sent to the National Assembly in October 2024, are part of President Tinubu’s broader plan to modernize the country’s tax system, increase government revenue, and improve how taxes are managed and collected.
What Happened?
Both chambers of the National Assembly — the Senate and the House of Representatives — have agreed on the final, harmonized versions of the bills. This means they’ve resolved all differences in the separate versions each chamber passed earlier.
The Senate’s Finance Committee, led by Senator Sani Musa, and the House Committee on Finance, led by Hon. Abiodun Faleke, worked together in a joint conference committee to settle 112 issues across the four bills.
What Are the Four Bills?
- Joint Revenue Board (Establishment) Bill, 2025
- Nigeria Revenue Service (Establishment) Bill, 2025
- Nigeria Tax Administration Bill, 2025
- Nigeria Tax Bill, 2025
These bills aim to strengthen the tax collection system, reduce loopholes, and ensure that more revenue is generated efficiently and transparently.
What’s New in These Bills?
One of the biggest updates is the introduction of a 4% development levy on the profits of most companies in Nigeria. Small and foreign (non-resident) companies are exempt.
This levy will be collected by the Nigeria Revenue Service and distributed as follows:
- 50% to the Tertiary Education Trust Fund (TETFund)
- 15% to the Education Loan Fund (up from 3%)
- 8% to the Nigeria Information Technology Development Fund
- 8% to the National Agency for Science and Engineering Infrastructure
- 4% to the National Board for Technology Incubation
- 10% to support defence and security infrastructure
- 5% to the Cybersecurity Fund
Some previous beneficiaries — such as the Social Security Fund, Nigeria Police Trust Fund, and National Sports Development Fund — have been removed from the distribution list.
Another important update is a 5% surcharge on fossil fuel products produced or sold in Nigeria. This will also be collected at the point of transaction and used to fund national development efforts.
Leaders React
Senate President Godswill Akpabio praised the passage of the bills, calling them a major step toward transforming Nigeria’s tax administration.
Deputy Speaker Benjamin Kalu, who presided over the House session, said:
“We’ve done our part. Now it’s up to the executive to act quickly.”
However, Borno lawmaker Ahmed Jaha warned against making any further changes to the bills after passage. He emphasized that even the smallest alteration could result in the President refusing to sign them into law.
What Happens Next?
The bills will now be transmitted to President Tinubu for assent. Once he signs them, they will become law.
If fully implemented, these reforms could:
- Boost Nigeria’s non-oil revenue
- Improve funding for education, tech, and security
- Create a fairer and more organized tax system
Bottom Line: The National Assembly has completed a major legislative task to support Nigeria’s economy. Now all eyes are on President Tinubu to sign the bills and set the reforms in motion.
