Nigeria’s Senate has approved four significant tax reform bills aimed at overhauling the nation’s tax system. These include the Nigeria Revenue Service Establishment Bill, Nigeria Tax Administration Bill, Joint Revenue Board Establishment Bill, and the Nigeria Tax Bill. The reforms propose renaming the Federal Inland Revenue Service to the Nigeria Revenue Service and adjusting the Value Added Tax (VAT) revenue-sharing formula to allocate 10% to the federal government, 55% to states, and 35% to local governments. The bills also introduce a Tax Appeal Tribunal and an Office of the Tax Ombud to enhance tax dispute resolution and taxpayer rights. After harmonization with the House of Representatives, the bills will be presented to President Bola Tinubu for assent
In a related development, Nigeria has fully repaid the $3.4 billion loan obtained from the International Monetary Fund (IMF) during the COVID-19 pandemic. The IMF confirmed that the repayment was completed by April 30, 2025. While the principal has been settled, Nigeria will continue to make annual payments of approximately $30 million in Special Drawing Rights charges over the next few years
These legislative and financial milestones reflect Nigeria’s commitment to fiscal reform and economic stability.
