Nigeria’s House of Representatives has passed four key tax reform bills for a second reading. The proposed legislation seeks to modernize the country’s tax system by harmonizing multiple taxes, reducing PAYE tax, and exempting essential goods from VAT. Lawmakers overwhelmingly supported the reforms, pushing them to the committee stage.
The House of Representatives has advanced four key tax reform bills to the second reading as part of efforts to modernize Nigeria’s tax system. The bills, originally introduced by President Bola Tinubu, were consolidated into a single proposal to streamline debates and legislative processes.
The proposed legislation aims to enhance revenue collection across federal, state, and local governments while ensuring a more efficient and transparent taxation system. It also seeks to repeal outdated tax laws, establish the Nigeria Revenue Service, and create mechanisms for resolving tax disputes through a Joint Revenue Board and Tax Appeal Tribunal.
House Leader Prof. Julius Ihonvbere, who led the debate, emphasized that the reforms would reduce multiple taxation, lower Pay-As-You-Earn (PAYE) tax rates, and exempt essential goods like food, healthcare, and education from Value Added Tax (VAT). He acknowledged the Nigerian Governors’ Forum for its role in refining the VAT-sharing formula, which had initially raised concerns.
During deliberations, lawmakers overwhelmingly supported the reform, citing its potential to boost economic growth, encourage compliance, and provide incentives for low-income earners. The bill was subsequently approved for a second reading following a voice vote by Speaker Abbas Tajudeen.
With the passage of the second reading, the bill will now undergo further scrutiny at the committee level, where additional refinements may be made before final approval. The government hopes the reforms will enhance fiscal sustainability and create a more business-friendly environment in Nigeria.
