House Of Representatives Submits Report On Tax Reform Bills

Senate Expected to Follow with Report Next Week

The House of Representatives has finalized its report on the four tax bills submitted by President Bola Ahmed Tinubu in October 2024, paving the way for legislative consideration and passage. The report was presented at plenary on Tuesday, March 11, 2025, by the Chairman of the Finance Committee, James Faleke.

In the Senate, progress on the tax bills is ongoing, with Senate President Godswill Akpabio announcing that the Finance Committee would return to Zuma Resort in Madala, Niger State, for further deliberations before submitting its report next week.

Tony Elumelu’s Net Worth Rises To $2.15 Billion Amid Business Expansion

Next Steps for Tax Bills in the National Assembly

With the report now laid before the House of Representatives, the tax bills will be scheduled for debate and passage at a later date. Meanwhile, the Senate Finance Committee, led by Chairman Adeyemi Adaramodu, is still fine-tuning its version of the report.

Adaramodu confirmed that the Senate Committee on Finance was working diligently to ensure a comprehensive review, stating:

“The Senate Committee on Finance is currently working on its report. When they are through, they will present it, just like the House of Representatives Committee on Finance has done.”

Once both chambers have passed their respective versions of the tax bills, a conference committee will be set up to harmonize any differences. The final, unified report will then be transmitted to President Tinubu for assent.

Stakeholder Consultations and Key Controversies

Last week, the Senate and House Finance Committees held separate retreats to analyze the contributions of key stakeholders, including:

• Nigeria Governors’ Forum (NGF)
• Organized Labour
• Religious and Regional Groups
• Professional Bodies

One of the most debated aspects of the proposed tax reforms is the shift to a derivation-based model for Value Added Tax (VAT) distribution. Under this model, tax revenues would be allocated based on where goods and services are consumed, rather than where company headquarters are located. This proposal has sparked controversy among state governments and businesses, as it could significantly impact fiscal allocations across Nigeria.

Overview of the Proposed Tax Reform Bills

The tax reform bills under consideration are:

1. Nigeria Tax Bill (NTB) 2024
2. Nigeria Tax Administration Bill (NTAB) 2024
3. Nigeria Revenue Service (Establishment) Bill (NRSEB) 2024
4. Joint Revenue Board (Establishment) Bill (JRBEB) 2024

These bills are based on recommendations from the Presidential Committee on Fiscal and Tax Reforms, led by Taiwo Oyedele, aimed at modernizing and streamlining Nigeria’s tax system.

Looking Ahead

With the House of Representatives having submitted its report, all eyes are now on the Senate, which is expected to follow suit in the coming week. Once both chambers complete their review and pass the bills, the harmonized tax reform package will be sent to President Tinubu for final approval, potentially reshaping Nigeria’s tax system for years to come.