In a decisive move to overhaul Nigeria’s tax landscape, President Bola Ahmed Tinubu is set to sign four comprehensive tax reform bills into law this Thursday. The new legislation aims to streamline tax administration, boost government revenue, and create a more transparent and efficient tax environment across the country.
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The four bills recently passed by the National Assembly after extensive consultations and revisions include:
Nigeria Tax Bill (Ease of Doing Business): This bill consolidates Nigeria’s fragmented tax laws into a single harmonized statute, simplifying tax compliance for individuals and businesses.
Nigeria Tax Administration Bill: Establishes a uniform legal and operational framework for tax administration across federal, state, and local governments, ensuring consistency and reducing bureaucratic bottlenecks.
Nigeria Revenue Service (Establishment) Bill: Repeals the existing Federal Inland Revenue Service Act and creates a more autonomous, performance-driven Nigeria Revenue Service (NRS). The NRS will have an expanded mandate, including the collection of non-tax revenues, with enhanced mechanisms for transparency and accountability.
Joint Revenue Board (Establishment) Bill: Replaces the current Joint Tax Board with a stronger Joint Revenue Board to improve cooperation among revenue authorities at all government levels. It also establishes a Tax Appeal Tribunal and an Office of the Tax Ombudsman to resolve disputes and protect taxpayers’ rights.
At the signing ceremony held at the State House, President Tinubu described the new laws as “pivotal to the success of the administration’s reforms and the country’s prosperity.” He emphasized that these reforms represent a “new lease of life” for Nigerians and future generations, highlighting the government’s commitment to creating an enabling environment for business and economic growth.
We have changed the roads, removed misgivings, and opened doors to a new economy and business opportunities. Nigeria is ready and open for business, the President declared.
The reforms also include tax relief measures designed to ease the burden on small businesses and low-income earners. For example, small businesses with annual turnover below ₦50 million will be exempt from income tax, and workers earning ₦800,000 or less annually will be tax-exempt. Additionally, corporate income tax rates will be gradually reduced to 27.5% in 2025 and 25% thereafter.
The Joint Revenue Board Bill introduces important oversight mechanisms, including the establishment of a Tax Appeal Tribunal and a Tax Ombudsman’s office, aimed at fostering fairness and resolving disputes efficiently.
These reforms come amid calls for greater fiscal responsibility and improved revenue generation to support Nigeria’s development goals. The bills have been the subject of intense debate, with some opposition from regional stakeholders, but the final versions reflect a broad consensus achieved through extensive stakeholder engagement.
As Nigeria embarks on this ambitious tax reform journey, experts believe these laws will enhance tax compliance, reduce corruption, and ultimately increase government revenue to fund critical infrastructure and social programs.
With President Tinubu’s assent, the new tax regime will take effect, marking a significant milestone in Nigeria’s economic transformation and signaling a more business-friendly and equitable tax system for all Nigerians.
