Breaking News: Senate Passes Tinubu's Tax Reform Bills for Second Reading Amid Controversy
The Nigerian Senate on Thursday passed President Bola Tinubu’s contentious Tax Reform Bills for second reading, setting the stage for a potential overhaul of the nation’s tax administration system.
The four bills, sponsored by Senate Majority Leader Bamidele Opeyemi, aim to reform and streamline Nigeria’s tax framework. Among them are proposals to establish the Joint Revenue Board, Tax Appeal Tribunal, and Office of the Tax Ombudsman; replace the Federal Inland Revenue Service with the Nigeria Revenue Service; and consolidate taxation laws into the Nigeria Tax Act.
Opeyemi described the bills as a “paradigm shift” that would modernize tax administration in Nigeria for the benefit of its citizens.
However, the reforms sparked heated debate in the chamber. Senator Ali Ndume voiced strong concerns, arguing that the bills contradict the Nigerian Constitution, which should have been amended first to align with the proposed reforms. He also pointed out opposition from key stakeholders, including the Nigerian Governors’ Forum, the National Executive Council, and traditional rulers.
“While I am not against the essence of these reforms, certain provisions contradict constitutional norms. Due process must be followed to ensure legitimacy and fairness,” Ndume asserted.
Despite the concerns, Senators Seriake Dickson and Mohammed Ali Monguno defended the bills, emphasizing their potential to create a robust tax system and enhance revenue generation.
Senate President Godswill Akpabio, after deliberations, called for a voice vote, which ultimately saw the bills pass their second reading.
If enacted, the legislation will establish a unified tax authority and improve dispute resolution mechanisms, while harmonizing tax laws across federal, state, and local levels. Proponents argue this will simplify the tax system and enhance compliance, but critics insist that more consultation and constitutional alignment are necessary.
The bills now move to the committee stage for further scrutiny.
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