Abuja, Nigeria — In a major step toward reshaping Nigeria’s fiscal architecture, the National Assembly has formally transmitted four groundbreaking tax reform bills to President Bola Ahmed Tinubu for presidential assent.
The move signals a pivotal phase in the actualisation of the Tinubu administration’s Renewed Hope economic agenda, which prioritises revenue efficiency and fiscal federalism.
Speaking at a press briefing in Abuja on Monday, Senator Yemi Adaramodu, Chairman of the Senate Committee on Media and Public Affairs, confirmed the transmission, stating that the harmonisation process between the Senate and the House of Representatives had been concluded.
“Yes, the bill has now been transmitted. It is out of our hands and on its way to the executive,” Adaramodu said.
The legislative package comprises:
Joint Revenue Board (Establishment) Bill
Nigeria Revenue Service (Establishment) Bill
Nigeria Tax Administration BillNigeria Tax Bill
These bills aim to modernise tax administration, broaden the national tax base, and enhance inter-governmental coordination on revenue collection.
Originally submitted in November 2024, the bills underwent rigorous legislative review, revisions, and negotiations before gaining the approval of both chambers of the National Assembly. Senator Adaramodu stressed that the detailed scrutiny was necessary to ensure alignment with existing statutes and to address legal and structural gaps.
“Tax legislation of this magnitude requires detailed examination. Our legal departments had to ensure alignment with existing laws. It’s not something that happens in two or three days,” he explained.
Following the final harmonisation, the documents were duly signed by Senate President Godswill Akpabio and House Speaker Tajudeen Abbas before being forwarded to the Presidency.
Akpabio last week credited the passage of the bills to “national interest, inclusive legislative engagement, and strategic leadership.”
Compromise on VAT Clause
One of the most debated aspects of the reform was an initial proposal allowing tax-generating states to retain 60% of Value Added Tax (VAT). The clause drew strong opposition—particularly from lawmakers representing northern states—who feared it would widen economic disparities.
A compromise was eventually reached, lowering the retention rate to 30% and replacing the term “derivation” with the more neutral “place of consumption.”
Despite opposition from some state governors and internal rifts within the legislature, the final versions of the bills gained cross-party support. Akpabio praised state governors for embracing the revised framework in the “spirit of unity.”
“We must commend the courage of our governors who, despite initial resistance, accepted the revised framework,” he said, also applauding Speaker Abbas for rallying support among younger lawmakers.
If signed into law, the legislation will usher in one of the most comprehensive overhauls of Nigeria’s tax and revenue system in decades—streamlining oversight, curbing leakages, and reinforcing fiscal discipline at all levels of government.
