President Bola Tinubu has signed four tax reform bills into law, marking a significant overhaul of Nigeria’s fiscal and revenue framework.
The new laws aim to transform tax administration, boost revenue generation, improve the business environment, and attract domestic and foreign investments.
The four new tax laws include:
– Nigeria Tax Bill (Ease of Doing Business): Consolidates Nigeria’s fragmented tax laws into a harmonized statute, promoting ease of doing business.
– Nigeria Tax Administration Bill: Establishes a uniform legal and operational framework for tax administration across federal, state, and local governments.
– Nigeria Revenue Service (Establishment) Bill: Replaces the Federal Inland Revenue Service with a more autonomous and performance-driven national revenue agency, the Nigeria Revenue Service (NRS).
– Joint Revenue Board (Establishment) Bill: Provides a formal governance structure to facilitate cooperation between revenue authorities at all levels of government.
The new tax regime will take effect from January 1, 2026, allowing for a six-month transition period for preparation and sensitization.
According to Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), this timeline enables stakeholders to adapt to the new system.
The reforms are expected to drive significant improvements in tax administration, enhance the ease of doing business, and attract investments.
President Tinubu described the new laws as pivotal to the success of his administration’s reforms and the country’s prosperity.
Senate President Godswill Akpabio praised Tinubu’s leadership qualities, saying the law would last for generations.
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, extolled the President’s leadership in enabling the passage of the bills.
Meanwhile, a tax expert, Caulcrick Akinyele, has expressed optimism about the new tax bills’ impact on Nigeria’s economy and governance.
He believes the signing of these bills into law marks a significant shift towards greater transparency and accountability in tax revenue management.
“With more taxpayers demanding better public accountability, the government will likely be more responsive to citizens’ needs.” He said.
Akinyele also expects the new tax policy to reduce public borrowing, lower interest rates, stabilize the naira, and create a more favorable business environment, ultimately fostering economic growth, job creation, and improved living standards.
He notes that this development is a crucial step towards good governance and economic stability, drawing parallels with similar reforms in Kenya and referencing the idea that taxpayers will care more about governance when they contribute financially.
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