The National Assembly has signalled its intention to pass the harmonised Tax Reform Bills by Tuesday, following the successful conclusion of a thorough review of contentious clauses in the proposed legislation. The announcement came via the official X account of the Chairman of the House Committee on Finance, Honourable James Faleke, on Sunday, 25 May 2025. Faleke, who led the House delegation in the joint harmonisation exercise, confirmed that both chambers of the legislature have reconciled differences in all four bills and are ready to present them for final approval by the House of Representatives and the Senate.
In his post, Faleke said the conference committee set up by the House and the Senate “has successfully concluded its work. The joint committees thoroughly reviewed all sections and addressed the grey areas of the four bills, examining each clause strategically and resolving contentious issues.” He added that the intensive deliberations, which continued through Thursday night into the early hours of Saturday, have readied the bills for presentation and debate on the floors of both Chambers.
Faleke paid tribute to his colleagues, particularly Senator Sani Musa, Chairman of the Senate Committee on Finance, for their collaboration. “I would like to especially appreciate the Senate conference committee, ably led by Distinguished Senator Sani Musa, as well as all members of the Senate Conference Committee. I also extend heartfelt gratitude to my colleagues on the House Conference Committee, which I had the honour to lead, for their unwavering commitment to the Nigerian people. We are truly grateful for your dedication and resilience in bringing this important task to a conclusion,” he wrote.
The four tax bills, which were referred to the joint harmonisation committee two weeks ago, seek to transform Nigeria’s tax system and bring it in line with global best practices. According to the report, these Executive bills cover amendments to the Federal Inland Revenue Service (Establishment) Act, the Value Added Tax Act, the Stamp Duties Act, and various development levies. After harmonisation, the bills will return to the respective Chambers for second reading, debate, and a final voice vote before onward transmission to President Bola Tinubu for assent.
Senate President Godswill Akpabio commended lawmakers for their efforts in ensuring that the bills meet international standards. After the Senate cleared two of the bills last week by majority voice vote, he said, “These four executive bills seek to transform and modernise the tax system in Nigeria.” He praised the diligence of both legislators and their aides for working overnight to advance the tax reform agenda.
During a briefing with journalists, Senator Sani Musa, who also chairs the ad hoc Senate committee on the Tax Reform Bills, elaborated on some key recommendations. Musa explained that a portion of the additional revenue generated from the new tax provisions will be earmarked for battling cybercrime, strengthening defence infrastructure, funding the Tertiary Education Trust Fund (TETFund), and supporting soldiers in their efforts to restore peace and safety in troubled regions. He emphasised the need for improved tax administration, calling on the President to appoint a substantive chairman for FIRS and establish an ombudsman to arbitrate and adjudicate tax-related disputes.
Senator Musa also underscored the importance of a dedicated tax tribunal. “It is not a court of record,” he clarified, “but it will handle appeals on tax assessments, Value Added Tax collection, development levies, and the reinstatement of inheritance tax, which had been expunged in earlier drafts.” He stressed that a specialised tribunal would expedite resolution of tax disputes and reduce the burden on appellate courts, thereby improving investor confidence.
Stakeholders across the private sector have welcomed the imminent passage of the bills. Business leaders note that a modernised tax framework could broaden the revenue base, improve compliance, and reduce the overreliance on oil earnings. The new provisions are also expected to introduce digital tax administration tools, enhancing transparency and efficiency in revenue collection.
Civil society organisations, however, have urged vigilance. Some NGOs have called for clear implementation guidelines to ensure that small businesses and low-income earners are not unduly burdened. They recommend the inclusion of tax relief measures and simplified filing procedures for micro, small and medium enterprises (MSMEs) to preserve their viability.
If passed by Tuesday, the harmonised bills will mark a significant milestone in President Bola Tinubu’s administration, which has prioritised fiscal reforms to shore up non-oil revenue. Since assuming office in May 2023, President Tinubu has signed several finance-related executive orders aimed at overhauling the tax system. The pending legislation will complement these initiatives by embedding the reforms in statute and providing a legal framework for improved revenue mobilisation.
As Nigeria grapples with revenue shortfalls and rising public expenditure, the Tax Reform Bills are seen as critical to achieving sustainable fiscal balance. Lawmakers say the harmonised clauses reflect careful negotiation to balance revenue generation with economic growth and social equity. With both Chambers poised for final passage, the National Assembly is set to deliver on its promise to modernise the nation’s tax architecture and align it with international norms.
