On May 7, 2025, the Nigerian Senate passed two significant tax reform bills: the Nigeria Revenue Service (Establishment) Bill, 2025, and the Nigeria Tax Administration Bill, 2025. These bills are part of President Bola Tinubu’s broader initiative to modernize the nation’s tax framework.
Key Highlights:
- Nigeria Revenue Service (Establishment) Bill, 2025: This bill proposes replacing the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS). The NRS will be led by an Executive Vice Chairman and overseen by a non-executive Chairman, aiming to enhance efficiency in tax collection and administration. Vanguard News
- Nigeria Tax Administration Bill, 2025: This legislation outlines the assessment, collection, and accounting processes for revenues accruing to the Federation, States, and Local Governments. It also prescribes the powers and functions of tax authorities.
The Senate President, Godswill Akpabio, announced the passage of these bills after a majority vote. He stated that a committee would be established to harmonize the Senate’s versions with those passed by the House of Representatives in March. Once harmonized, the unified bills will be forwarded to President Tinubu for assent.
The remaining two bills in the tax reform package—the Nigeria Tax Bill, 2025, and the Joint Revenue Board (Establishment) Bill, 2025—are scheduled for consideration on May 8, 2025.
These legislative advancements signify a pivotal step in Nigeria’s efforts to enhance its tax system, aiming for increased transparency, efficiency, and revenue generation.
