Nigerian National Assembly Nears Passage of Harmonised Tax Reform Bills Amid Consensus on Contentious Issues
The National Assembly has signaled its readiness to pass the harmonised tax reform bills by Tuesday, following a rigorous review process that successfully resolved previously contentious provisions within the legislation.
The legislative development, considered a critical step in Nigeria’s ongoing tax reforms, was made public through an announcement by Hon. James Faleke, Chairman of the House Committee on Finance and leader of the House delegation for the harmonisation process.
Faleke, via a statement posted on his official X (formerly Twitter) account on Sunday, disclosed that the Conference Committee set up by both chambers of the National Assembly—the Senate and the House of Representatives—had completed its assignment.
The committee was tasked with harmonising the four executive tax bills that had earlier passed separately through both chambers. These bills were sent to the joint committee approximately two weeks prior for reconciliation.
According to Faleke, the joint conference committee meticulously reviewed every section of the bills and addressed all grey areas that had previously stalled consensus. He highlighted the commitment of the committee members, noting that the deliberations spanned several days and stretched into the early hours of Saturday morning.
The efforts culminated in a final draft that is now ready to be presented for passage by both legislative houses.
“The Conference Committee set up by the House and the Senate on the Tax Reform Bills has successfully concluded its work. The joint committees thoroughly reviewed all sections and addressed the grey areas of the four Bills, examining each clause strategically and resolving contentious issues.
“After an intensive deliberation that stretched through Thursday night, all day Friday, and into the early hours of Saturday, I am pleased to report that the Bills are now ready for presentation to both the House and the Senate for final passage.
“I would like to especially appreciate the Senate Conference Committee, ably led by the Chairman of the Senate Committee on Finance, the Distinguished Senator Sani Musa, as well as all members of the Senate Conference Committee.”
Faleke extended his gratitude to the Senate Conference Committee led by Senator Sani Musa, Chairman of the Senate Committee on Finance, for their cooperation and leadership during the harmonisation process. He also commended members of the House delegation for their diligence and patriotism in seeing the process through to completion.
Following a majority voice vote that indicated broad support among lawmakers, the Senate passed the harmonised bills. Senate President Godswill Akpabio commended his colleagues for their dedication and sacrifices, emphasizing that the tax reforms aim to modernise and transform Nigeria’s taxation system in line with international best practices.
The passage of these bills in the Senate came shortly after the upper chamber had approved two of the tax bills and deferred the consideration of the remaining two to Thursday. The quick turnaround signaled a heightened sense of urgency and political will to advance Nigeria’s economic framework.
In a press briefing following the Senate plenary, Senator Sani Musa provided further insights into the broader objectives and components of the tax reforms. He affirmed that the bills were crafted to align Nigeria’s taxation system with global standards, ensuring efficiency, transparency, and fairness in tax administration.
Notably, Musa revealed that revenue generated from the reformed tax regime would be directed towards critical national priorities such as: Combating cybercrime, Strengthening defence and national security infrastructure, Supporting the Tertiary Education Trust Fund (TETFund), Enhancing the welfare and operational capabilities of Nigerian armed forces personnel.
Senator Musa also announced additional recommendations accompanying the legislative framework. Among these is the proposal for the President to appoint a chairman for a new tax oversight structure and to establish an ombudsman office. The ombudsman would serve as an independent arbiter on tax-related disputes, fostering fairness and trust within the system.
He further emphasized the urgent need for the establishment of a tax tribunal, an independent body that would address tax grievances and disputes. While clarifying that such a tribunal would not be a court of record, Musa stressed its importance in reducing litigation burdens and ensuring timely adjudication.
The harmonised bills also revisited several taxation components that had raised concerns among stakeholders. These included:
The contentious issue of Value Added Tax (VAT) and its collection modalities,
The proposed development levies,
The previously suggested inheritance tax, which has since been removed from the final version.
Senator Musa expressed confidence that the reforms, once signed into law, would be positively received by Nigerians. He praised President Bola Tinubu for allowing an inclusive and transparent legislative process, noting that the executive had ensured a level playing field for all stakeholders.
With the joint committee having concluded its work and the Senate having endorsed the bills, attention now turns to the House of Representatives. Should the House similarly pass the harmonised version, the legislation will be transmitted to President Tinubu for final assent.
If signed into law, the tax reforms are expected to mark a significant milestone in Nigeria’s economic transformation agenda, enhancing revenue mobilisation while promoting accountability and equitable growth.