The House of Representatives discussed the four tax measures that President Bola Tinubu sent to the National Assembly for review and approval on Wednesday, ending months of uncertainty.
After parliamentarians agreed on the controversial Value Added Tax proposals during plenary, the bills passed second reading.
Following the recommendations of the Presidential Taskforce on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele, President Bola Tinubu sent four tax measures to the National Assembly in 2024 for review and approval.
The Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill are the bills that are being presented.
However, the Value Added Tax elements in the proposals caused strong feelings throughout the nation, and northern politicians resisted their adoption.
Many lawmakers demanded that the proposals be withdrawn, but the president resisted pressure to do so. As a result, the representatives halted debate on the bills.
After a meeting between the Oyedele-led committee and the Nigeria Governors Forum in January 2025, the President finally got his way.
To ensure a fair allocation of resources, the 36 governors at the meeting suggested that 50% of the VAT revenue be distributed based on equality, 30% on derivation, and 20% based on population.
Legislators took turns contributing to the four proposals at Wednesday’s plenary, which was chaired by Speaker Tajudeen Abbas. On the Speaker’s recommendation, the laws were then passed for a second reading and combined into one.
During the discussion of the bill’s broad principles, House Leader Prof. Julius Ihonvbere praised Tinubu and Abbas for giving MPs the time to engage in extensive public consultation with their constituents.
According to him, the development allowed the Green Chamber to ultimately agree to examine the reform plans’ provisions in the country’s best interests.
He praised those who voiced their concerns about the bills. To be fair, we require a complete revamp of our tax administration system in order to propel the country’s economic transformation, which will not only produce outcomes but also enhance everyone’s quality of life.
He lamented that Nigerians, despite the harsh economic conditions, pay multiple taxes to about 15 agencies, adding that when passed into law, the reforms will guarantee a uniform tax administration system for the good of all.
Urging his colleagues to support the proposed legislation, the Edo lawmaker noted that the President Tinubu-led government is committed to revamping micro businesses in Nigeria, hence, the provision in the bill for tax exemption for small businesses with little profit margin.
