By Milcah Tanimu
The Nigerian Senate has approved President Bola Tinubu’s Tax Reform Bills, which aim to revamp the nation’s tax system for improved revenue generation, simplified compliance, and business growth.
Presented by Senate Leader Opeyemi Bamidele, the bills, comprising 43 clauses across six parts, propose significant changes, including a corporate tax reduction from 30% to 25%, exemptions for small businesses, and protections for the poor.
However, the passage was contentious. Senator Ali Ndume opposed the bills, citing insufficient consultations and constitutional amendments required for some provisions, particularly around Value Added Tax (VAT) and derivation issues. Ndume urged further collaboration with governors, traditional rulers, and other stakeholders before finalizing the reforms.
Despite these concerns, Senators Seraike Dickson and the Chairman of the Senate Finance Committee supported the bills, with Senate President Godswill Akpabio ruling in their favor.
To address lingering objections, the Senate has tasked its Finance Committee with conducting a public hearing. Stakeholders, including the Governors’ Forum and the National Economic Council (NEC), will have six weeks to provide input on the proposed reforms.
The outcome of these hearings is expected to shape the implementation of the tax reforms, which aim to bolster Nigeria’s economy while addressing stakeholder concerns.
