From Adesuwa Tsan, Abuja
The Senate has concluded the passage of the remaining two critical tax reform bills aimed at overhauling the country’s tax administration, enhancing transparency and streamlining the resolution of tax disputes.
The legislation, the Joint Revenue Board (Establishment) Bill, 2025 and the Nigeria Tax Bill, is part of the broader national tax reform agenda being championed by the Executive through the Presidential Committee on Fiscal Policy and Tax Reforms.
One of the highlights of the Joint Revenue Board Bill is the establishment and empowerment of the Tax Appeal Tribunal and the Office of the Tax Ombudsman. The Senate introduced key amendments to ensure that both institutions are funded through the Consolidated Revenue Fund, as appropriated by the National Assembly, a move aimed at promoting their independence and functionality.
The Tribunal’s jurisdiction has been expanded to cover both federal and state tax laws, though restricted strictly to tax-related disputes, eliminating broader legal controversies. Additionally, new provisions now require Tax Appeal Commissioners to meet stricter professional qualification standards, thereby raising the bar for credibility and efficiency in adjudicating tax matters.
Remuneration for commissioners will now be determined by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) while a penalty of N5 million has been introduced for unlawful disclosure of confidential institutional information.
To boost administrative efficiency, the Senate also approved a 3 percent service cost of collection to support the operations of the newly structured tax institutions.
Under the Nigeria Tax Bill, lawmakers retained several strategic funding mechanisms and tax rates while making amendments to others. The Development Levy will continue to finance institutions such as TETFUND (50 percent), NELFUND (15 percent), and NITDA (10 percent), Defence Security Fund (10 percent) among others.
Significant amendments were also made to the Petroleum Industry Act (PIA), 2021, to make it more aligned with global best practices.
Speaking after the passage of the bills, Senate President Godswill Akpabio, described the reforms as “a foundational shift in how Nigeria manages, adjudicates, and utilises its tax system.” He emphasised the importance of the legislation in supporting national development, improving the ease of doing business, and boosting investor confidence.
He added that the passage of the bills will bring more revenue to the nation, justice to all and more development to the country. Akpabio told his colleagues that there were slight differences in the version passed by the House of Representatives because “here we were very meticulous,” adding that the conference committee will address them.
Announcing the composition of the harmonisation committee, he listed Senator Abdullahi Abubakar as chairman, while Senator Musa Mohammed is deputy. Members include Senators Abba Moro, Enyinnaya Abaribe, Ezenwa Francis, Adetokunbo Abiru, Daniel Olugbenga, Joel Thomas, Asuquo Ekpeyong, Tahir Mungono, Jim Kuta, Olanilekan Adeola Solomon, Adams Oshiomhole and Hussaini Babangida.
Leader of the Senate faulted criticism by the public on the handling of the Tax Reform Bills by the Red Chamber. He added that the parliament chose to not grandstand but ensure that the interest of the public is prioritised.