The House of Representatives has approved the second reading of four tax reform bills introduced by President Bola Tinubu, despite initial opposition from certain political groups and northern governors.
The proposed legislation includes the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
These bills, initially submitted to the National Assembly in 2024, aim to overhaul the country’s tax structure.
During Wednesday’s plenary, lawmakers voiced both support and concerns, particularly regarding possible conflicts with the 1999 Constitution.
Representative Sada Soli stressed the importance of clearly defining derivation terms to avoid ambiguity.
Others pointed out that the bills seek to amend 40 existing laws and called for their proper review.
Following initial resistance, the Nigerian Governors’ Forum endorsed the bills earlier this year after modifications, including a revised VAT sharing formula: 50% distributed equally among states, 30% based on derivation, and 20% allocated by population.