After Five Months, Representatives Ultimately Approve Tinubu's Four Tax Bills.

The four tax bills submitted to the National Assembly by President Bola Tinubu in October 2024 were approved on their third reading in the House of Representatives on Tuesday. The House had previously reviewed and endorsed the report from the House Committee on Finance last Thursday, which included various recommendations regarding the executive bills. After a three-month delay that involved public hearings and the collection of memoranda from relevant stakeholders, the National Assembly resumed discussions on the bills three weeks ago. The hearings concentrated on identifying effective strategies to reform Nigeria’s tax administration system. During the plenary session on Tuesday, House Leader Julius Ihonvbere proposed that the bills be read for the third and final time. He stated, “Mr. Speaker and esteemed colleagues, I propose that the bill for an Act concerning the assessment, collection, and accounting of revenue for the federation, federal, state, and local governments, along with the powers and functions of tax authorities, be read for the third time.” He also requested the third reading of additional bills. These included a proposal to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007, and to enact the Nigeria Revenue Service (Establishment) Bill, which aims to create the Nigeria Revenue Service with the authority to assess, collect, and account for government revenue. Additionally, he moved for a bill to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman to facilitate the harmonization, coordination, and resolution of disputes related to revenue administration in Nigeria. Finally, a bill was proposed to repeal certain taxation acts and consolidate the legal frameworks governing taxation, leading to the enactment of the Nigeria Tax Act, which would address the taxation of income, transactions, and instruments. The lawmakers subsequently cast a decisive vote in favor of the bills, which were approved under the leadership of Speaker Tajudeen Abbas during the session. The subsequent phase involves sending the bills to President Tinubu for his approval, following their passage through the Senate and, if required, reconciling any differences between the Senate and House versions. Despite the strong backing, the bills encountered resistance, especially from legislators representing northern Nigeria, who, in support of their governors, urged for the withdrawal of the bills to allow for additional consultations.