The Nigerian Senate on Thursday approved the second reading of four tax reform bills proposed by President Bola Tinubu, marking another step in the administration’s push to restructure the country’s tax framework.
Senate Majority Leader Opeyemi Bamidele, who led the discussion on the bills, outlined their potential benefits, emphasizing efforts to simplify tax statutes and promote equitable revenue sharing.
“These reforms aim to eliminate double taxation, particularly by exempting salaries below the minimum wage,” Bamidele said. “Additionally, the bills propose that state governments receive 55 percent of Value Added Tax (VAT) revenue from the proposed 15 percent VAT rate. This is part of a broader effort to streamline Nigeria’s core tax statutes.”
Bayelsa West Senator Seriake Dickson highlighted historical challenges in Nigeria’s tax system, linking them to the country’s reliance on oil revenue. “The discovery of oil has distracted us from developing a robust taxation system,” he noted, adding, “We must ensure transparency, especially in how taxes like VAT are allocated among states.”
However, the debate also drew opposition from Borno South Senator Ali Ndume, who expressed concerns about the timing and legal implications of the proposed reforms. “While reforms are necessary, my concerns lie with the timing and issues around derivation and VAT. Some provisions may require constitutional amendments,” he cautioned.
Countering Ndume’s reservations, Senate Chief Whip Tahir Monguno advocated moving the bills forward, arguing that public hearings would allow for necessary adjustments. “These reforms aim to ease the tax burden on Nigerians and should not be delayed,” he said.
Following deliberations, Senate President Godswill Akpabio called for a voice vote, leading to the bills’ approval for second reading.
The proposed reforms will now proceed to the next stages, including public hearings, where stakeholders will have the opportunity to provide input before the final legislative decision.
