The Nigerian House of Representatives on Thursday approved President Bola Ahmed Tinubu’s tax reform bills.
The approval of the contentious bills came after months of controversy which sparked regional and tribal tensions.
The passage of the bill into law was confirmed by Presidential spokesperson and Special Adviser on Media and Public Communications, Sunday Dare.
In a statement through his official X account on Thursday, Dare said that the bills were passed by the Green Chamber on Thursday after months of debate.
“Tax reform bills have been approved by Nigeria’s House of Representatives today in Abuja. Today, March 13, 2025,” he said.
Recall that on October 3, 2024, Tinubu sent four tax reform bills—including the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill—to the National Assembly.
However, no sooner had the bill been sent than opposition against their passage developed
Recall that the Northern Nigeria Governors’ Forum kicked against the bill, particularly the proposed value-added tax derivation model in the Nigeria Tax Bill, saying it put the region at disadvantage.
The National Economic Council also opposed the tax derivation model.
The approval of the bills will now see a change in value added tax sharing formula.
Within Nigeria gathered that 50% of VAT will now be distributed equally, 20% to be distributed based on population, 30% to be distributed based on consumption.
The current 7.5% VAT rate retained while inheritance funds cannot be taxed
