Senate Passes Tax Reform Bills for Second Reading Despite Initial Objections

Despite facing initial objections from some quarters, the Senate on Thursday passed the four tax bills for second reading through voice votes.

Recall that President Bola Tinubu transmitted the four tax reform bills to the National Assembly for consideration on October 3.

Governors from the North and other interested parties opposed the tax reforms, which led to controversy. The Presidency expressed concern over the situation and clarified that the bills were intended to advance national development rather than target any one area.

The Senate passed through second reading the four bills: Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. All part of Tinubu’s comprehensive tax reform package. The proposed legislation seeks to harmonize, coordinate, and resolve disputes arising from revenue administration in Nigeria.

Lawmakers discussed the fundamental tenets of the tax reform measures during the session. Following the suggestions of the Taiwo Oyedele-led Tax Reforms Committee, President Tinubu sent four proposals to the Senate on September 3, 2024, which were discussed in a closed-door session.

Sen. Ali Ndume had concerns regarding the bill’s timing and specific contents, even though the reforms were accepted in some quarters as being essential to modernizing Nigeria’s tax structure and lowering the tax burden on citizens.

He suggested that the reforms, with necessary amendments, could be passed “in less than 24 hours” if withdrawn and reintroduced.
However, the Chief Whip strongly opposed this view, emphasizing the importance of advancing the bill to the public hearing stage.

“The bill should scale second reading and undergo thorough examination during the public hearing. Afterward, it can be subjected to clause-by-clause consideration.”

According to Senator Ali Ndume, “Reforms are necessary; I am not against any reforms. My problem is the timing, as it is today in Nigeria, as we say. I want to add to what Senator Seraike said.

“One will be at the public hearing and the issue of derivation because the Constitution has to be amended before some of the proposals of the Bill can be affected.
“This bill should be withdrawn; we will work on it and submit it after getting the buy-in of the governors, traditional rulers, and the NEC.