The Nigerian Senate on Wednesday approved two of President Bola Tinubu’s proposed tax reform bills, signaling a significant step forward in the administration’s drive to modernise the country’s tax system. However, the upper chamber rejected a contentious proposal to increase the Value-Added Tax (VAT) rate from 7.5% to 10%, citing concerns over the economic burden on citizens.
The two bills passed are the Nigeria Revenue Service (NRS) Establishment Bill and the Joint Revenue Board (JRB) Establishment Bill. Both are central to the President’s broader fiscal reform agenda, which aims to enhance revenue generation and improve public finance management.
The legislative approval followed a two-hour deliberation on the report submitted by the ad hoc committee led by Senator Sani Musa (Niger East), who had been tasked with reviewing the bills and resolving areas of contention. The session, which ran until 5:30 p.m., culminated in a voice vote that saw majority support for the two bills.
Senate President Godswill Akpabio commended his colleagues for their diligence, emphasising the transformative potential of the new laws.
“These bills will revolutionise tax administration and improve governance in Nigeria, I commend all senators for their commitment in producing legislation that reflects the collective interests of Nigerians.” Akpabio Stated.
While expressing confidence in completing work on the remaining two bills, Akpabio announced that the Senate would reconvene on Thursday at 12 noon to continue deliberations, even if proceedings extend late into the night.
Deputy Senate President Barau Jibrin also praised the chamber’s ability to navigate early disagreements through constructive dialogue.
“It’s normal to have divergent views, especially on sensitive fiscal matters. Thanks to the wisdom of the Finance Committee and the Committee of Elders, we reached a consensus through engagement with critical stakeholders, including religious leaders, regional bodies, and the Nigerian Governors’ Forum.” Jibril noted.
He described the outcome as a testament to the maturity and democratic spirit of the 10th Senate.
The rejection of the proposed VAT increase comes amid heightened public concern over inflation and the rising cost of living. Lawmakers unanimously agreed that raising taxes at this time would further strain Nigerian households and businesses.
The House of Representatives had earlier passed all four tax reform bills. With the Senate’s concurrence on two of them, the stage is now set for harmonisation and eventual presidential assent, which would usher in a reformed framework for tax collection and distribution in Nigeria.
