Nigeria’s House of Representatives has approved President Bola Ahmed Tinubu’s tax reform bills after months of debate and opposition. The approval came on Thursday, March 13, 2025, marking a significant step in the administration’s push for tax reforms.
Presidential spokesperson and Special Adviser on Media and Public Communications, Sunday Dare, confirmed the development in a statement on his official X account. While he did not provide further details, he stated, “Tax reform bills have been approved by Nigeria’s House of Representatives today in Abuja. Today, March 13, 2025.”
The passage of these bills comes amid ongoing controversy. The proposed reforms faced strong opposition from various stakeholders, including the Northern Nigeria Governors’ Forum and the National Economic Council, particularly over the value-added tax (VAT) derivation model in the Nigeria Tax Bill.
The disagreement over the VAT model has been a major point of contention. Critics argue that it could significantly alter revenue distribution among states, potentially favoring some regions over others. The Northern Nigeria Governors’ Forum openly rejected the proposal, citing concerns that it would reduce the revenue allocation to their states. The National Economic Council also raised objections, leading to heated discussions over the past few months.
President Tinubu initially introduced the tax reform bills on October 3, 2024. The package included four key bills: the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.