The Senate on Wednesday May 7 greenlit two of President Bola Tinubu’s four proposed tax reform bills, advancing a sweeping overhaul of Nigeria’s tax system while firmly rejecting a controversial VAT hike.
The Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill sailed through after a two-hour session and a majority voice vote, marking a critical step in Tinubu’s ambitious fiscal reform agenda.
But in a nod to widespread public concern over inflation and rising living costs, lawmakers threw out a proposal to raise VAT from 7.5% to 10%, opting to hold the line on consumer taxation.
Deliberations had been paused on Tuesday to iron out sticking points, with the Senate reconvening Wednesday and wrapping up proceedings by 5:30 p.m.
Senate President Godswill Akpabio lauded the lawmakers for their unity and sacrifice.
“These bills will revolutionize tax collection and distribution in Nigeria. We’re building a document that will stand the test of time.” Akpabio noted.
President Tinubu had forwarded the tax reform package to the National Assembly in October 2024, targeting better revenue collection and stronger public finance management.
Deputy Senate President Barau Jibrin commended the Senate’s ability to resolve internal disputes and engage stakeholders ranging from religious leaders to regional blocs.
“We disagreed, we debated but in the end, democracy won. This is legislative maturity at its finest.” Jibrin said.
Meanwhile, the House of Representatives had already passed all four bills.
With Senate concurrence, only Tinubu’s signature stands between Nigeria and a bold new tax regime.
