The Senate on Thursday passed for second reading, the tax reform bills forwarded to it by President Bola Tinubu in October 2024.
The passage followed a debate among the lawmakers.
The bill was thereafter referred to the Committee on Finance, which was asked to revert in not more than six weeks.
Before the debate, the lawmakers had earlier gone into about an hour closed-door session.
The bills, which were presented by Senate Leader Opeyemi Bamidele, were passed after a closed-door session that lasted over an hour.
The Tax Reform Bills are aimed at overhauling Nigeria’s tax system to drive revenue generation, simplify compliance, and support business growth.
The bills, which comprise 43 clauses and six parts, are expected to protect small businesses and exempt the poor from tax payments.
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Additionally, the bills propose a reduction in corporate tax from 30 per cent to 25 per cent.
The passage of the bills was not without controversy, however. Senator Ali Ndume rejected the bill, citing insufficient consultations, issues with the Value Added Tax (VAT), and derivation.
He argued that the constitution would need to be amended for some of the proposals in the bill to take effect.
He said, “There is the issue of derivation because the constitution has to be amended for some of the proposals of the bill to be effected.
“This bill should be withdrawn. We work on it and submit it back after getting the buy-in of the governors, National Executive Council and the Traditional Rulers.”
Despite the opposition, the bills were supported by Senators Seraike Dickson and the Chairman Senate Committee on Finance. Senate President Godswill Akpabio ruled in favour of the lawmakers in support of the bills.
Meanwhile, the Senate has directed its Finance Committee to hold a public hearing on the proposed bill, opening the floor for stakeholders, including the Governors’ Forum, National Economic Council (NEC), Northern Elders’ Forum (NEF), and other opposing groups, to share their thoughts and concerns. The Finance Committee has been tasked with reporting back to the Senate within six weeks.
