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FG Reveals When Tax Bills Will Be Passed, Implemented

by Folarin Kehinde
written by Folarin Kehinde

The federal government has announced that the National Assembly will pass the controversial tax reform bills into law by the end of the first quarter (Q1) of 2025.

The disclosure was made by Taiwo Oyedele, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms over the weekend.

He said the implementation of the tax reform bills will commence in July 2025.

President Bola Tinubu submitted the four tax reform bills to the National Assembly on October 13, 2024, amidst criticism from leaders, particularly from those who labelled the bills as anti-north.

However, the bills recently received the backing of the Nigerian Governors Forum (NGF), which also proposed a new “equitable” sharing formula for Value Added Tax (VAT).

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Senate halts action on tax reform bills

by Folarin Kehinde
written by Folarin Kehinde

The Senate has suspended action on the tax reform bills currently before it.

It further instructed the Committee on Finance to stay action on the public hearing pending the time the agitation in the public space is addressed.

The Senate further constituted a special committee to meet with the executive branch and work with the Federal Government to resolve the issues surrounding the tax reform bills.

This was made known by the Deputy Senate President, Jibrin Barau, who presided during the plenary on Wednesday.

There have been a lot of controversies surrounding the Tax Reform Bills since its introduction to the National Assembly.

The bills are the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024.

Northern governors have rejected the bills, describing them as anti-democracy.

Following this, the National Economic Council requested that the tax reforms bill be withdrawn from the NASS for more consultations.

Amidst the controversy, Senator Shehu Buba (APC, Bauchi South) in an interview with British Broadcasting Service, Hausa Service said Northern Senators agreed to recall the Tax Reforms Bills.

He said, “These bills are complex and require thorough review by tax policy experts.”

He claimed that northern lawmakers strongly oppose the proposed “derivation” formula in the value-added tax (VAT) distribution system, arguing that northern states would be unfairly impacted.

Also, on Tuesday, the president instructed the Ministry of Justice to liaise with the judiciary.

Speaking about these controversies, the Deputy Senate president noted that the delegation will meet on Thursday at the National Assembly to resolve all the issues that have been the cause of the uproar.

Barau said, “On the tax reform bills currently before us, we acknowledge that the Senate remains the highest legislative assembly in this country.

“The Senate comprises men and women of wisdom and experience, entrusted to legislate for the peace, stability, and development of the nation.

“The Senate of the Federal Republic of Nigeria, like similar bodies globally, serves as a stabilising force in times of difficulty or disagreement. Through dialogue and consensus, the Senate has consistently provided solutions to national challenges since 1999.”

He added, “In this regard, we have decided to set aside politics, ethnicity, and regionalism to work together on resolving the issues surrounding the tax reform bills.

“In collaboration with the Executive Arm of Government, we agreed to establish a forum to identify and address contentious areas to ensure national unity and progress.

“Before the introduction of these bills, we faced numerous challenges, including insecurity and economic issues.

“The President has been working to address these problems, and we are committed to supporting these efforts while tackling global economic challenges. We also agreed that no other issues should aggravate the country’s current difficulties.

“It has been mutually decided between the Executive and the Senate to engage the Judiciary to sort out these matters.

“the Attorney General of the Federation will be involved in discussions to identify and resolve areas of disagreement for the nation’s benefit.

“Tomorrow, the committee established by the Senate, along with its leadership, will meet with the Attorney General to address these issues.”

Barau further instructed, “Consequently, the Senate Committee on Finance has been directed to pause further actions on public hearings and other matters related to the tax reform bills until the issues are resolved.”

Members of the committee are all the leadership of the Senate including other members, Adamu Ailero (PDP, Kebbi Central), Orji Kalu (APC, Abia North), Seriake Dickson (PDP, Bayelsa West) Titus Zam (Benue South), Abdullahi Yahaya (Kebbi), Adeola Olamilekan (APC, Ogun West), Sani Musa (APC, Niger East) and Adetokunbo Abiru (APC, Lagos East).

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JUST IN: Tax reform bills won’t harm north, no plan to scrap agencies – Presidency

by Folarin Kehinde
written by Folarin Kehinde

The Presidency has clarified that the proposed Tax Reform Bills do not recommend the scrapping of prominent agencies such as TETFUND, NASENI, or NITDA.

According to the State House, instead, the reforms aim to streamline Nigeria’s tax system, reducing the burden on businesses and promoting investment.

In a statement on Monday, December 2, 2024, Bayo Onanuga, Special Adviser to President Bola Tinubu, stressed that the bills consolidate multiple taxes into a single levy while ensuring agencies remain funded through budgetary provisions.

The changes, he noted, are designed to modernize outdated tax laws, fostering national growth without impoverishing any region.

Part of the statement read: “The tax reform bills will not make Lagos or Rivers more affluent and other parts of the country, as recklessly canvassed, poorer. The bills will not destroy the economy of any section of the country.

“Instead, they aim to enhance the quality of life for Nigerians, especially the disadvantaged, who are trying to make a living. Contrary to the lies being peddled, the bills do not suggest that NASENI, TETFUND, and NITDA will cease to exist in 2029 after the passage of the bills.

“Government agencies, such as NASENI, TETFUND, and NITDA, are funded through budgetary provisions with company income tax and other taxes paid by the same businesses that are being overburdened with the special taxes.

“One reason President Bola Tinubu embarked on the Tax and Fiscal Policy Reforms is the need to streamline tax administration in Nigeria and make the operating environment conducive for businesses.

“For decades, businesses, investors, and private sector players in Nigeria have complained of being overburdened by a myriad of taxes and levies, including those earmarked to fund various government agencies and initiatives.

“The multiple taxes complicate the economic environment, making Nigeria uncompetitive for investment and preventing many businesses from growing or continuing their operations.

“Some companies have had to make the rational decision to relocate to other countries. We can not continue on this path or wait for 20 years if this country is to deliver the prosperity we need for our people.

“The proposal, as contained in section 59(3) of the Nigeria Tax Bill, only seeks to consolidate some of the earmarked taxes imposed on companies and replace them with a single tax to be shared with the key agencies as beneficiaries in a phased manner until 2030.

“The time frame offers ample opportunity for the affected agencies to explore other funding sources in addition to budgetary allocations in line with the constitution and international best practices.

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JUST IN: Ohanaeze Ndigbo supports Tinubu’s tax reforms bill

by Folarin Kehinde
written by Folarin Kehinde

Ohanaeze Ndigbo, the apex socio-cultural organization representing the Igbo people, has expressed its unequivocal endorsement of President Bola Ahmed Tinubu’s proposed Tax reform bills.

The group lauded the reforms for their potential to revolutionize Nigeria’s economic framework, particularly benefiting Small and Medium Enterprises (SMEs) and workers, while addressing the long-standing issue of double taxation.

In a statement on Sunday, December 1, 2024, signed by its Secretary General, Mazi Okechukwu Isiguzoro, Ohanaeze described the reforms as a vital step toward equitable economic growth.

“These tax reforms represent a transformative opportunity for the rejuvenation of SMEs and the enhancement of Nigerian workers’ fortunes.

“By eliminating the scourge of double taxation imposed by unscrupulous state governors, these reforms will create an equitable business climate that significantly boosts both local and foreign investments,” the group stated.

The group stated that the Igbo community, known for its entrepreneurial spirit, stands to benefit immensely from the proposed measures, which are expected to bolster private sector growth and foster a fairer regulatory environment.

Ohanaeze urged Southern Federal lawmakers to put aside partisan differences and ensure the smooth passage of the reforms in the National Assembly.

“It is imperative that our Southern legislators close ranks, transcending partisan divides, to ensure that the Tax Reforms Bills navigate both chambers of the National Assembly successfully,” the statement emphasized.

The organization expressed disappointment at opposition to the reforms from some Northern governors and lawmakers, attributing it to an attempt to maintain the status quo in VAT derivation principles, which they argue favours select interests.

“If the Northern political elites succeed in thwarting President Tinubu’s initiatives, it could set a dangerous precedent, fostering resistance against meaningful reform,” Ohanaeze warned.

Ohanaeze reiterated its solidarity with the Tinubu administration, citing its previous decision to abstain from nationwide protests as a gesture of cooperation.

“The promise of a prosperous and just Nigeria is within our reach, but it demands our collective resolve to advocate for transparency, equity, and sustainable economic growth,” the group concluded.

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