On Wednesday, the Nigerian Senate took a giant step forward in Nigeria’s ongoing fiscal overhaul by passing two main reforms-bills into law: the Nigeria Revenue Service (Establishment) Bill and the Nigeria Tax Administration Bill. They, however, quickly passed after the clause-by-clause consideration ran by the Senate till in-house special committee set up to focus on finance. The legislation is trying to modernize the tax system of the country in terms of collection, enforcement, and administration to enhance the degree of efficiency and accountability in the revenue system of Nigeria.
This represents a monumental event in the bigger picture of fiscal reform approach that the federal government is pushing. Both bills are part of a four-package series of legislations for the complete transformation of the tax administration in Nigeria. The remaining two bills, the Nigeria Tax Bill and the Joint Revenue Board (Establishment) Bill, are slated to be passed on Thursday, May 8, 2025; upon the passage of all, these four bills are considered to act together to simplify tax structures, enlarge the tax net, and improve the coordination between federal and state levels of tax authorities.
This push for reform also arises from concerns with Nigeria’s over-dependence on oil revenue and the urgent need to diversify sources of income. Governments anticipate sharply boosting revenue mobilization, in both simple and transparent ways from these improved tax laws and its enforcement, also those laws seek to promote and ensure compliance by both individuals and companies All economists applaud the bills for being so desperately needed.
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