The House of Representatives has passed President Bola Tinubu’s four tax reform bills for a third reading, approving them on Tuesday after reviewing the recommendations from its Committee on Finance.
Notably, the committee upheld the current value-added tax (VAT) rate at 7.5%, rejecting the proposed increase to 15%.
Recall that the bills—Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—have sparked controversy in recent months. Opposition first emerged from the Northern Nigeria Governors’ Forum and the National Economic Council, particularly over the VAT derivation model.
The earliest opposition to the bills came from the Northern Nigeria Governors’ Forum. The governors opposed the proposed value-added tax derivation model in the Nigeria Tax Bill, while the National Economic Council also opposed the tax derivation model.
President Tinubu, had in October 2024, submitted the four bills before the National Assembly.