The Nigerian Senate has approved the Tax Reform Bills put forward by President Bola Tinubu.
Presented by Senate Leader Opeyemi Bamidele, the bills were passed following a closed-door session that lasted over an hour.
The Tax Reform Bills aim to revamp Nigeria’s tax system to enhance revenue generation, streamline compliance, and foster business growth. Comprising 43 clauses and six parts, the bills are designed to protect small businesses and exempt the poor from tax obligations. Additionally, they propose reducing the corporate tax rate from 30 percent to 25 percent.
The approval of the bills was not without contention. Senator Ali Ndume opposed the legislation, citing inadequate consultations and issues related to Value Added Tax (VAT) and derivation. He argued that some proposals in the bill would require constitutional amendments.
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“There is the issue of derivation because the Constitution has to be amended for some of the proposals of the Bill to be affected. This bill should be withdrawn. We work on it and submit it back after getting the buy-in of the Governors, National Executive Council, and the Traditional Rulers,” Ndume stated.
Despite the opposition, the bills received support from Senators Seraike Dickson and the Chairman of the Senate Committee on Finance. Senate President Godswill Akpabio ruled in favor of the lawmakers supporting the bills.
