Senate passes two tax bills, rejects 10% VAT

On Wednesday, the Senate passed two of President Bola Tinubu’s four proposed tax reform bills, marking a significant step forward in efforts to revamp Nigeria’s tax administration system.
The approved bills are the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill. Their passage followed a one-day delay in deliberations, which was used to resolve contentious provisions within the legislation.
Notably, the Senate rejected a proposal to increase the value-added tax (VAT) from 7.5% to 10%, citing public concerns about the rising cost of living and choosing instead to maintain the current rate.
President Tinubu had submitted the four bills to the National Assembly in October 2024 as part of a broader fiscal reform agenda aimed at strengthening revenue collection and improving public finance management.
The bills were adopted after a two-hour review of a report presented by the ad hoc committee led by Senator Sani Musa, who represents Niger East. The session concluded around 5:30 p.m.
Senate President Godswill Akpabio announced the passage of the bills following a majority voice vote and praised his colleagues for their efforts in amending and removing contentious clauses.
“These bills will add immense value to governance and transform the way taxes are collected and distributed in Nigeria,” Akpabio said. “We hope they will revolutionise tax administration. I thank all senators for their sacrifices in producing a document that will stand the test of time for the collective good of Nigerians.
“We will complete work on the two remaining bills tomorrow (Thursday), even if we must sit until 10 p.m. We’ll resume by 12 noon for further deliberation and voting.”
Also speaking, Deputy Senate President, Barau Jibrin, praised his colleagues for the progress made, despite early disagreements.
“It’s normal to disagree to agree, especially on such sensitive matters,” he said. “The Committee on Finance and the Committee of Elders deserve special commendation for their wisdom and leadership.
“Initially, there were disagreements and rancour. But the Senate, being the highest legislative body in the land, wisely constituted a Special Committee to engage with stakeholders including religious leaders, regional organisations, and the Nigerian Governors’ Forum.
“Thankfully, all contentious areas have been resolved. This is the beauty of democracy, and I am proud of the maturity this Senate has shown.”
The House of Representatives had previously approved all four tax bills proposed by President Tinubu. With the Senate’s concurrence, the stage is now set for a new tax regime in Nigeria, pending the bills’ transmission to and signing by the President.