On Wednesday, the Senate approved two out of the four tax reform bills submitted by President Bola Tinubu, marking a significant step in the country’s ongoing tax system overhaul.

The passed bills are the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill.

Their approval followed a one-day delay to resolve contentious sections within the proposals.

However, the Senate turned down a plan to increase the value-added tax (VAT) from 7.5% to 10%, choosing instead to maintain the current rate due to widespread concerns over the rising cost of living. President Bola Tinubu had submitted the four tax reform bills to the National Assembly in October 2024 as part of a wider effort to boost government revenue and improve the management of public finances.

The Senate adopted the bills after a two-hour deliberation on the report from an ad hoc committee led by Senator Sani Musa, representing Niger East. The session ended around 5:30 p.m.

Senate President Godswill Akpabio announced the passage of the two approved bills following a majority voice vote and praised his colleagues for their collaboration in revising and eliminating controversial provisions.

“These bills will add immense value to governance and transform the way taxes are collected and distributed in Nigeria,” Akpabio said. “We hope they will revolutionise tax administration. I thank all senators for their sacrifices in producing a document that will stand the test of time for the collective good of Nigerians.

“We will complete work on the two remaining bills tomorrow (Thursday), even if we must sit until 10 p.m. We’ll resume by 12 noon for further deliberation and voting.”

Deputy Senate President, Barau Jibrin, also commended his colleagues for the progress achieved, acknowledging their efforts despite initial disagreements. 

“It’s normal to disagree to agree, especially on such sensitive matters,” he said. “The Committee on Finance and the Committee of Elders deserve special commendation for their wisdom and leadership.

“Initially, there were disagreements and rancour. But the Senate, being the highest legislative body in the land, wisely constituted a Special Committee to engage with stakeholders including religious leaders, regional organisations, and the Nigerian Governors’ Forum.

“Thankfully, all contentious areas have been resolved. This is the beauty of democracy, and I am proud of the maturity this Senate has shown.”

Earlier, the House of Representatives had approved the four tax bills proposed by President Tinubu. The Senate’s concurrence now sets the stage for a new tax regime in Nigeria, pending the transmission and signing of the bills into law by President Tinubu.