In a significant move to modernize Nigeria’s tax system and boost revenue generation, President Bola Ahmed Tinubu has officially signed four groundbreaking tax reform bills into law. The signing ceremony took place at the Presidential Villa in Abuja and marks one of the most comprehensive overhauls of the country’s tax administration in decades.

The new laws are designed to streamline tax processes, enhance ease of doing business, promote transparency, and improve revenue mobilization at all levels of government. The reforms also aim to reduce the burden of taxation on small businesses and individual taxpayers while fostering investor confidence in Nigeria’s fiscal environment.

The Four Tax Reform Bills Signed Into Law:

1. Nigeria Revenue Service (Establishment) ActThis law replaces the Federal Inland Revenue Service (FIRS) with the newly established Nigeria Revenue Service (NRS).

The NRS is expected to operate with greater autonomy, improved efficiency, and stricter accountability mechanisms.

2. Nigeria Tax Administration (Standardization) Act This bill harmonizes tax procedures across federal, state, and local governments, reducing complexity and inconsistencies in tax collection and compliance.

3. Nigeria Tax Consolidation and Ease of Doing Business ActAimed at simplifying and unifying Nigeria’s tax laws, this act seeks to eliminate duplications and create a more business-friendly tax environment.

4. Joint Tax Board and Tribunal (Establishment) ActThis legislation sets up a new Joint Tax Board for better intergovernmental coordination, a Tax Appeal Tribunal to resolve disputes efficiently, and a Tax Ombudsman to ensure transparency and taxpayer rights.

Government’s Position

Speaking at the signing, President Tinubu emphasized that the reforms are crucial for Nigeria’s economic transformation. “This is a major step towards building a tax system that works for all—transparent, fair, and growth-oriented,” the president said.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, noted that the new laws are the product of extensive stakeholder consultations and will help “remove bottlenecks, eliminate multiple taxation, and foster compliance.”

Impact on Businesses and Citizens

The tax reforms are expected to:

Ease compliance for small and medium enterprises (SMEs)

Enhance government revenue without increasing tax rates

Improve trust and accountability in the tax system

Support economic diversification and fiscal stability

As Nigeria works to stabilize its economy and attract investment, these reforms are seen as a major win for governance and private sector development.

By Erewunmi Peace