Tinubu’s Tax Overhaul Hits Milestone as Nigerian Senate Approves Two Reform Bills, Rejects VAT Hike

The Senate of Nigeria gave a green light to two Shut up In the four ambitious tax reform bills proposed by President Ball Tinubu, which signed a development in the administration's efforts to reset the country's battered fiscal system.

But in a clear indication of political sensitivity surrounding the tax policy, lawmakers rejected the proposed tax increase of value from 7.5 to 10 percent, Choosing rather than to offer Minor concessions that will allow claims to input VAT on fixed property, overhead costs, and administrative costs.

The approved bill – the bill of establishing the Nigeria Revenue Service and the Joint Revenue Board Establishment Bill – puts a specific step toward centralization and professional tax administration. Former repetition of long-term federal inland revenue service (firs), which sets the way for a new body of incomewhile The latter creates a coordinating framework to reconcile the tax collection between federal and subnational governments, a prolonged challenge of Nigeria tax fragment.

Two additional tax bills, the Nigeria Tax Administration Bill and the Nigeria Tax Bill, are set to debate and potentially pass on Thursday.

The legislative breakthrough will come nearly a year after the Tinubu that Tinubu has a mandate to fix Nigeria's lazy economy and expand the net net. His proposals, sent to the National Assembly earlier this year, are part of a broader campaign to change what many experts have described as an ineffective and improper tax regime.

“These bills will add massive management value and change how Nigeria taxes have been collected and shared,” Senate President Godswill Akpabio said on the floor, shortly after the upper room passed the bills following a strict review of the clause. He praised the lawmakers for their discipline and signed the room ready to work overtime to finish the pending law.

Senate pushes the VAT walk again, suggests developing rather than

However, the suggested increase of VAT of the Nubu, which has set up the presidency as needed to boost government revenue, proven a step far away for senators, Given to a consideration of The rising cost of living and widespread public disappointment. In refusing to walk, the Senate sought to protect Nigerian households from what would be another inflationary shock.

Instead, lawmakers have created an alternative approach: a new 4 percent developmental development in some income streams, rings that have been condemned to continue funding agencies that are centers of education, technology, and national security.

According to the Senate resolution, developmental development will be shared as follows:

• Tetfund – 50%
• Nigerian Education Loan Fund – 15%
• NITDA – 10%
• NASENI – 10%
• National Cybersecurity Fund – 5%
• Defense Security Fund – 10%

Akpabio warned that fundraising for these agencies, as the first suggested, would be scripting important sectors. He noted that Nigeria could not undermine institutions that drive change, security, and development of human capital.

The decision to maintain their funds also reflects greater concerns over unemployment, insecurity, and fragile tech ecosystem of Nigeria.

The long walk in tax reforms

The way to the Senate approved was filled with strife. Suggested reforms, even technically driven, have controversial controversy over interests and legislators, especially those who care about how tax changes and ordinary citizens affect high inflation and economic mobilization. The leaders of the northern battle are against reforms, which are said to be this is it will place the region in a significant Economic Lack.

Senate President Barau Jibrin has eased the negotiations behind the scenes that resulted in the approval of the bills, announced that the committee of the elders played an important role in resolving non-concerned issues. The committee has been reported to be in contact with religious leaders, regional representatives, and other civil society groups to cool down tensions and to form consensus.

“It is time to congratulate the entire Senate and, in particular, the financial committee and the adults' committee for wisdom and leadership presented on these bills,” said Jibrin, who praised lawmakers at the time that showed the navigation of the maze legislative.

The last passage to be expected while House approved all four bills

Both national assembly rooms are now in line with the direction of Fiscal reform, with the House of Representative passed all four tax fees. When the Senate end of consultations With the remaining two bills, the final versions will be reconciled and sent to President Tinubu for Ascent.

Many believe that the passage of these bills has been one of the most important overhauls of Nigerian tax architecture over the decades. The reform package is expected to simplify compliance, improve equity equity, and expand the tax base – an urgent goal as oil revenues Continue with Dwindle and public debt.