The Nigerian Senate has passed all four executive-sponsored tax reform bills aimed at overhauling the country’s tax administration framework.
Final Two Tax Bills Cleared
During Wednesday’s plenary, lawmakers considered and approved the Joint Revenue Board Establishment Bill 2025 and the Nigeria Tax Bill 2025. The passage followed a detailed clause-by-clause review and third reading on the Senate floor.
Senate President Godswill Akpabio announced the formation of a conference committee to harmonise the Senate’s version with that of the House of Representatives.
Historic Move Toward Modern Tax Acts
Akpabio described the passage as a milestone, noting it was the first time Nigeria would have a fully modernised set of tax laws.
The four bills include:
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Joint Revenue Board Establishment Bill
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Nigeria Revenue Service Establishment Bill
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Nigeria Tax Administration Bill
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Nigeria Tax Bill
“These bills aim to transform and modernise the tax system in Nigeria,” the Senate declared.
Harmonisation and Presidential Assent Next
The Senate will align its position with the House, which had passed the bills in March. Once harmonised, the final versions will be sent to President Bola Tinubu for his assent.
Revised VAT Sharing Formula Proposed
The Nigeria Tax Administration Bill proposed the following VAT revenue sharing formula:
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10% for the Federal Government
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55% for states and the FCT
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35% for local governments
Additionally, VAT meant for states will be distributed as follows:
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50% shared equally among all states
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20% based on population
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30% based on point of consumption
These recommendations mark a shift from the earlier proposed formula and aim to promote fairness and efficiency in tax distribution.
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