Tinubu to sign four landmark tax bills into law

Summary

President Tinubu to assent to sweeping tax reform bills at the Presidential Villa
New laws to simplify tax system, strengthen administration, and attract investment
Federal Inland Revenue Service to be replaced by Nigeria Revenue Service
Joint Revenue Board to boost coordination across all levels of government

Abuja Nigeria — President Bola Tinubu will on Thursday, 26 June, 2025, sign into law four transformative tax reform bills aimed at overhauling Nigeria’s fiscal and revenue systems.

According to a statement issued by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the four bills: the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill, were approved by the National Assembly after wide-ranging consultations with stakeholders and interest groups.

The bills are expected to significantly improve tax administration, boost government revenue, enhance the ease of doing business, and attract both local and foreign investment.

While the Nigeria Tax Bill (Ease of Doing Business) seeks to consolidate various tax laws into a single, harmonised statute to reduce duplication, cut compliance burdens, and foster a more predictable business environment, the Nigeria Tax Administration Bill introduces a unified legal and operational framework for tax administration across federal, state, and local governments.

The third bill, the Nigeria Revenue Service (Establishment) Bill, replaces the Federal Inland Revenue Service (FIRS) with a more autonomous and performance-driven agency, the Nigeria Revenue Service (NRS), tasked with overseeing both tax and non-tax revenue collections, while embedding transparency and accountability.

With the aim to formalise cooperation among revenue authorities at all levels while improving oversight and protecting taxpayers’ rights, the fourth bill, the Joint Revenue Board (Establishment) Bill, provides for a Tax Appeal Tribunal and an Office of the Tax Ombudsman.

The signing ceremony, scheduled to take place at the Presidential Villa in Abuja, will be attended by key figures in the executive and legislative arms of government, including the Senate President, Speaker of the House of Representatives, and leaders of both chambers’ finance committees, alongside representatives from the governors’ forums and relevant ministers.

Background

The four tax reform bills to be signed into law reflect a cornerstone of President Bola Tinubu’s Renewed Hope Agenda, which prioritises economic stability, fiscal discipline, and private-sector-led growth.

Initially submitted to the National Assembly as Executive Bills in November 2024, the legislative package underwent rigorous scrutiny, several rounds of revisions, and extensive consultations with stakeholders to build consensus and address concerns across sectors.

The harmonisation of the bills between the Senate and the House of Representatives was concluded in June 2025, paving the way for their transmission to the President for assent.

The reforms are designed to resolve longstanding inefficiencies in Nigeria’s tax system, including fragmented legislation, poor coordination across tiers of government, and low revenue performance relative to the nation’s economic size.

By consolidating multiple tax laws, introducing a uniform tax administration framework, and enhancing transparency through the establishment of a more autonomous Nigeria Revenue Service, the new laws are expected to modernise the country’s fiscal architecture and bring it in line with international best practices.

Controversy and opposition

Despite broad support, the bills, particularly the proposed revision of the Value Added Tax (VAT) sharing formula, have sparked debate. Currently, VAT is distributed based on 20% derivation, 50% equality, and 30% population.

The proposed changes shift emphasis to the place of supply and consumption, raising concerns among some northern elites who fear it could disproportionately benefit economically dominant states like Lagos. Critics have described the revised formula as “anti-North,” warning that it may deepen regional disparities.

Additionally, the proposed redistribution changes the federal allocation from 15% to 10%, increases the states’ share from 50% to 55%, while maintaining local governments at 35%.

While proponents argue the changes reflect a fairer, performance-based model, opponents fear it could aggravate existing economic imbalances across the federation.

Broader context

The tax reforms come amid ongoing efforts by the Tinubu administration to stabilise Nigeria’s economy, which has been challenged by inflation, a weakening naira, and declining oil revenues as part of a wider strategy to foster economic resilience, create jobs, and encourage private investment.

Complementary initiatives, such as regional integration through ECOWAS and infrastructure projects like the Lafia flyover, demonstrate the administration’s multi-pronged approach to development.

The new tax regime is considered a critical milestone in reshaping Nigeria’s economic landscape for sustainable growth and inclusive prosperity.