Abuja – President Bola Tinubu will sign four tax reform bills into law this Thursday, June 26, 2025. These bills, passed by the National Assembly, aim to change Nigeria’s fiscal and revenue framework. The reforms are expected to improve the ease of doing business and increase revenue generation.
Legislative Changes Consolidate Tax Laws
The signing follows the National Assembly’s approval of legislation transmitted by President Tinubu in October 2024. The package includes the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. These bills consolidate Nigeria’s tax laws, reduce multiple taxes, and eliminate duplication. This consolidation is projected to lower taxpayer compliance costs and create a more predictable fiscal environment.
Impact of New Legislation on Tax Administration
The Nigeria Tax Administration Bill will establish a uniform legal and operational framework for tax administration across federal, state, and local governments. The Nigeria Revenue Service (Establishment) Bill seeks to create a more autonomous and performance-driven national revenue agency, replacing the current Federal Inland Revenue Service Act. The Joint Revenue Board (Establishment) Bill will facilitate cooperation among revenue authorities and introduce oversight mechanisms.
Presidential spokesperson Bayo Onanuga stated, “When the new tax laws become operational, they are expected to significantly transform tax administration in the country, leading to increased revenue generation, improved business environment, and a boost in domestic and foreign investments.” The reforms also establish an independent Tax Appeal Tribunal and an Office of the Tax Ombudsman to ensure transparency and accountability.
Accelerating Fiscal Policy Reform
These reforms are a significant step in Nigeria’s fiscal policy reform agenda. The goal is to improve Nigeria’s tax-to-GDP ratio and strengthen revenue generation. This could reduce the nation’s reliance on oil revenue. Experts anticipate that the predictability and fairness introduced by these laws will encourage greater business compliance.
Economic Ramifications and Future Outlook
These tax reforms are central to President Tinubu’s economic plan to modernize Nigeria. A more efficient tax system is vital for funding public services and development. Improving the business environment through these legislative changes signals Nigeria’s commitment to attracting investment.
The success of these new laws depends on their practical application across government tiers. As President Tinubu signs these bills, the focus will shift to implementation. The coming months will show the impact of this significant Nigeria’s Tax Reform on the nation’s economy and investment climate.
By Abdullah Korede
