🇳🇬 Nigeria’s Tax Revolution: A Path to Equity, Transparency, and Growth
In a bold move to overhaul Nigeria’s decades-old tax framework, the Senate has passed four landmark tax reform bills that could reshape the country’s fiscal landscape for generations to come.
📜 The Bills at a Glance
The approved legislation includes:
- Nigeria Tax Bill 2024
- Nigeria Tax Administration (Procedure) Bill 2024
- Nigeria Revenue Service (Establishment) Bill 2024
- Joint Tax Board (Establishment) Bill 2024
These reforms are designed to:
- Modernise tax administration
- Reduce reliance on oil revenues
- Empower state-level economic growth
💬 Expert Endorsement
Arabinrin Aderonke Atoyebi, a prominent tax analyst, praised the reforms as “a significant step toward a sustainable and inclusive economy,” noting that they reflect President Bola Tinubu’s vision of rebuilding national trust through fiscal fairness and efficiency.
⚖️ A New VAT Sharing Formula
One of the most progressive components is the restructured VAT distribution formula:
- 50% shared equally among all states
- 20% based on population
- 30% based on actual consumption
The VAT rate remains at 7.5%, ensuring no additional burden on consumers.
“It’s a formula designed to balance fairness with performance,” said Atoyebi, highlighting its potential to incentivize better governance at the state level.
🏗️ Strengthening Institutions
The reforms guarantee continued support for agencies like:
- TETFUND (Education)
- NASENI (Engineering)
- NITDA (Innovation)
They also rebrand the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service, with a broader mandate for transparency and effectiveness.
Atoyebi lauded Dr Zacch Adedeji, the FIRS Executive Chairman, as a “reform champion” who has earned the respect of stakeholders by delivering real change.
🏛️ Next Steps: Harmonisation & Presidential Assent
With Senate passage complete, the next phase is harmonisation with the House of Representatives, followed by presidential assent and gazette publication.
“This is the Renewed Hope Nigerians have been waiting for,” Atoyebi concluded.
These reforms mark a historic opportunity to build a more inclusive, efficient, and accountable tax system—one that can unlock the full potential of Nigeria’s economy while restoring public trust.
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