Tinubu’s Tax Reforms: Senate Passes Two Out of Four Bills

Abuja, Nigeria – May 8, 2025. The Nigerian Senate has passed two new laws about how the country collects and manages taxes. These laws are part of President Bola Tinubu’s plans to change the way Nigeria handles its money.

The two bills that were passed are:

1. The Nigerian Revenue Service Establishment Bill, and
2. The Joint Revenue Board Establishment Bill.

These bills were discussed during a Senate meeting on Wednesday. The Senate President, Godswill Akpabio, announced that the bills had been approved after most of the senators agreed by saying “yes” during a voice vote.

The bills were first reviewed by a special committee led by Senator Sani Musa from Niger East. The committee looked into the arguments and confusion surrounding the tax reform ideas and then gave its report to the Senate.

What These Bills Mean:

• The Nigerian Revenue Service Bill will replace the old Federal Inland Revenue Service (FIRS) law that was made in 2007.
• This new law will create a new office called the Nigerian Revenue Service, which will be in charge of checking, collecting, and managing money (called “revenue”) that comes to the federal government from taxes.
• The Joint Revenue Board Bill will set up a new team that helps manage tax money not just for the federal government, but also for state and local governments.
• This new board will also help settle arguments about taxes and make sure the right groups are collecting money fairly.

One Senate official explained that the laws will give more power to tax authorities and help them work better with both state and local governments.

What’s Next?

There are still two more tax bills from President Tinubu’s plan that have not yet been passed:

• The Nigeria Tax Bill 2024, and
• The Tax Administration Bill.

These are expected to be passed soon, possibly on Thursday.

Back in October 2024, President Tinubu sent four tax bills to the National Assembly. But after public meetings and feedback from experts, the House of Representatives made big changes to the original ideas before passing their versions in March.

Now that the Senate has passed its version, a special committee will work to combine the Senate and House versions into one final law.

Why This Matters

These new tax laws are meant to make it easier and more organised for Nigeria to collect money through taxes. This money is very important because it helps the government build roads, schools, hospitals, and provide other services for the people.