The National Assembly has completed work on four key tax reform bills and is set to send them to President Bola Ahmed Tinubu for his final approval. This came after the Senate and House of Representatives both adopted the harmonised reports during plenary sessions on Wednesday.
The bills aim to modernise and strengthen Nigeria’s tax system and revenue collection. They include the Joint Revenue Board (Establishment) Bill 2025, Nigeria Revenue Service (Establishment) Bill 2025, Nigeria Tax Administration Bill 2025, and Nigeria Tax Bill 2025. President Tinubu initially transmitted these bills to the National Assembly in November 2024.
Senator Mohammed Sani Musa, Chairman of the Senate Committee on Finance and leader of the Senate delegation in the conference committee, presented the harmonised report to the Senate. Hon. James Faleke, Chairman of the House Committee on Finance, led the House delegation.
Faleke explained that the committee resolved all differences between the Senate and House versions. There were 45 differences in the Nigeria Tax Administration Bill, 46 in the Nigeria Tax Bill, and 12 in the Nigeria Revenue Service Bill. These issues were resolved through mutual agreement, with some clauses keeping the Senate’s version, others the House’s, and a few being amended.
A major provision in the bills is the introduction of a 4% development levy on the assessable profits of all companies liable to tax under chapters two and three, except small companies and non-resident firms. The levy will be collected by the Nigeria Revenue Service and placed in a special account.
The distribution of the development levy is set as follows:
– 50% to the Tertiary Education Trust Fund (TETFund)
– 15% to the Education Loan Fund (increased from 3%)
– 8% to the Nigeria Information Technology Development Fund
– 8% to the National Agency for Science and Engineering Infrastructure (reduced from 10%)
– 4% to the National Board for Technology Incubation
– 10% to Defence and Security Infrastructure
– 5% to a Cybersecurity Fund
The Social Security Fund, Nigeria Police Trust Fund, and National Sports Development Fund, previously beneficiaries according to the House, were removed from the list.
Additionally, a new clause was added to impose a 5% surcharge on all chargeable fossil fuel products produced or consumed in Nigeria. This surcharge will be collected at the point of sale.
Deputy Speaker of the House, Benjamin Kalu, praised the passage of the bills, saying the reforms signal a new direction for Nigeria’s fiscal policy. “With these bills, Nigeria has moved from where it was to where it ought to be,” he said.
Hon. Ahmed Jaha warned against any alterations during the final cleanup of the bills, reminding officials that previous tampering had led to withheld presidential assent. “Where the T is not crossed, don’t cross it; where the I is not dotted, don’t dot it,” he advised.
Once signed into law, these tax reform bills are expected to boost government revenue, increase transparency in tax collection, and support Nigeria’s development efforts.
