Tinubu Signs Four Landmark Tax Bills into Law to Reform Nigeria’s Revenue System

President Bola Ahmed Tinubu, on Thursday, made a significant stride in overhauling Nigeria’s tax and revenue system by signing four crucial tax reform bills into law. The presidential assent was given during a formal ceremony held at the Presidential Villa in Abuja, in the presence of key government officials, lawmakers, and stakeholders in the tax administration ecosystem.

The newly signed laws are expected to modernize Nigeria’s tax structure, enhance efficiency in revenue collection, and improve the ease of doing business in the country. The four bills signed include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

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At the heart of this tax reform initiative is the Nigeria Tax Bill, also referred to as the “Ease of Doing Business” tax legislation. This bill seeks to consolidate the country’s fragmented tax laws into a single, harmonised legal framework.

By reducing the multiplicity of taxes and eliminating duplicative obligations, the law aims to relieve Nigerian businesses and individuals of excessive compliance burdens. It creates a more predictable and investor-friendly tax environment, crucial for boosting foreign direct investment and encouraging entrepreneurship.

The bill also enhances Nigeria’s global competitiveness by aligning its tax system with international standards while addressing long-standing issues that have plagued the country’s informal and formal tax sectors.

Standardizing Tax Procedures Nationwide

The second piece of legislation, the Nigeria Tax Administration Bill, sets out to unify the tax administration procedures across federal, state, and local government levels. For decades, taxpayers have struggled with differing rules, duplicate demands, and administrative inefficiencies from various tiers of government.

With the passage of this bill, Nigeria now has a uniform operational and legal framework that guides tax collection and enforcement practices. It provides for the adoption of digital technologies, standardized audit processes, and an integrated taxpayer database to reduce evasion and ensure consistency in tax enforcement nationwide.

It also mandates capacity building for tax officers and standard operating procedures to increase professional standards and accountability among tax administrators.

A New National Revenue Engine: Nigeria Revenue Service

Perhaps the most transformative of the four laws is the Nigeria Revenue Service (Establishment) Bill. This act repeals the Federal Inland Revenue Service (FIRS) Act, thereby creating a new, independent and performance-driven revenue collection body known as the Nigeria Revenue Service (NRS).

The NRS will be responsible not only for tax collection but also for non-tax revenues, such as levies, penalties, and other statutory remittances. The agency’s mandate is now broader and reinforced with measures to ensure transparency, autonomy, and accountability.

The NRS is expected to run on a performance-based structure, with provisions for internal audits, external performance evaluations, and oversight by relevant legislative and executive bodies.

According to insiders familiar with the bill, the NRS will also operate with enhanced digital platforms for taxpayer registration, filing, and payment—part of efforts to reduce human interference and the potential for corruption.

Enhancing Intergovernmental Collaboration and Oversight

The fourth bill signed by President Tinubu, the Joint Revenue Board (Establishment) Bill, aims to improve coordination among Nigeria’s diverse revenue-generating agencies. It establishes a formal governance structure through a Joint Revenue Board (JRB), comprising representatives from federal, state, and local revenue authorities.

One of the bill’s key features is the creation of a Tax Appeal Tribunal, a body dedicated to resolving disputes between taxpayers and revenue authorities. This tribunal is designed to operate independently and swiftly, thereby increasing confidence in the fairness of the tax system.

Additionally, the law introduces the Office of the Tax Ombudsman, tasked with addressing taxpayer complaints and ensuring that revenue agencies act within the bounds of the law. This office will also play a role in auditing tax enforcement actions and recommending policy changes.

A Milestone in Economic Governance

The signing of these four tax reform laws marks a pivotal moment in President Tinubu’s economic reform agenda. It reflects his administration’s recognition that fiscal sustainability and domestic revenue mobilization are critical to Nigeria’s long-term economic stability and growth.

The President’s economic advisers describe the tax reform package as foundational for financing critical infrastructure, health, education, and social services without over-relying on debt or oil revenues.

Stakeholders from the private sector, civil society, and development partners have largely welcomed the reforms, describing them as timely and necessary. However, they emphasize the importance of effective implementation, capacity development, and transparency to realize the full benefits of these new laws.

As Nigeria moves to operationalize these reforms, the success of the new tax system will depend on the coordination between different levels of government, the willingness of agencies to adapt to change, and the government’s commitment to enforcement and fairness.