House of Reps Debates Tax Reform Bills to Reshape Nigeria’s Fiscal Policies

The Nigerian House of Representatives is currently debating key tax reform bills aimed at improving revenue generation and economic growth. Stakeholders weigh in on the potential impact.

On Wednesday, the House of Representatives commenced discussions on four tax reform bills that President Bola Tinubu sent to the National Assembly in 2024.

The bills are set for a second reading on the floor of the Green Chamber about six months after being sent to the National Assembly by the President. This follows recommendations from the Taiwo Oyedele-led Committee on Fiscal Policy and Tax Reforms.

The legislation encompasses the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

The new tax bills were surrounded by widespread controversy, sparking harsh criticism and strong opposition from various quarters. Northern governors and politicians in the opposition were among those demanding that these bills be withdrawn from the National Assembly.

During the plenary session on Wednesday, multiple speakers expressed their support for the bill. However, legislator Sada Soli raised concerns that certain sections of the new bills could potentially conflict with the 1999 Constitution.

According to Soli, it’s essential to clearly define the issue of derivation in order to prevent any ambiguity.

He was optimistic that the committee responsible for reviewing the bills would resolve any issues that might arise before their passage.

Additionally, other lawmakers highlighted the 40 acts that the bill aimed to amend and called for them to be presented before Parliament. They expressed concerns about multiple taxation related to property purchases as outlined in the bill, noting that it required both buyers and sellers to pay taxes.