The House of Representatives on Thursday adopted the recommendations of its Committee on Finance on the Nigeria Tax Reform Bills transmitted to the National Assembly in October 2024 by President Bola Tinubu.
This followed a clause-by-clause consideration of the proposed amendments as presented by the House Chairman, Committee on Finance, James Abiodun Faleke, during Thursday’s plenary, presided over by Speaker Tajudeen Abbas.
Amendments were proposed to the four bills titled: “A Bill for an Act to Provide for the Assessment, Collection of, and Accounting for Revenue Accruing to the Federation, Federal, States, and Local Governments; Prescribe the Powers and Functions of Tax Authorities, and for Related Matters (HB.1756)” (Referred: 12/2/2025).
“A Bill for an Act to Repeal the Federal Inland Revenue Service (Establishment) Act, No.13, 2007, and Enact the Nigeria Revenue Service (Establishment) Bill to Establish the Nigeria Revenue Service, charged with Powers of Assessment, Collection of, and Accounting for Revenue Accruable to the Government of the Federation, and for Related Matters (HB.1757).
“A Bill for an Act to Establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombud, for the Harmonisation, Coordination, and Settlement of Disputes arising from Revenue Administration in Nigeria, and for Related Matters (HB.1758).
“A Bill for an Act to Repeal Certain Acts on Taxation and Consolidate the Legal Frameworks Relating to Taxation and Enact the Nigeria Tax Act to Provide for the Taxation of Income, Transactions, and Instruments, and for Related Matters (HB.1759).”
At the Committee of the Whole, lawmakers approved key provisions, including the replacement of the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS), stricter tax enforcement measures, and enhanced revenue-sharing formulas for states and local governments.
Among the changes adopted is the requirement for legislative approval before any tax waivers can be granted by the President or Governors.
The House also adopted the recommendation to keep the Value Added Tax at 7.5 per cent while rejecting a proposed increase to 15 per cent.
Additionally, military salaries were exempted from income tax, while solid mineral royalties were increased from 7.5% to 10%.
Banks are also required to report transactions above N50 million for individuals and N250 million for companies.
Abbas commended the committee, stating that the changes made to the bill would serve the interests of Nigerians.
Following the adoption of the recommendations, plenary was adjourned until Tuesday.