As the National Assembly resumes plenary today, lawmakers are set to accelerate discussions on tax reform bills, which have been a major focus since their introduction by President Bola Tinubu on October 13, 2024.
The tax reform bills, aimed at restructuring Nigeria’s tax system, had faced strong opposition, particularly from northern lawmakers and governors, who feared they would negatively impact their region. However, during the Yuletide recess, a compromise was reached between the Nigerian Governors’ Forum (NGF) and the Presidential Committee on Tax Policy and Fiscal Reforms.
As part of the agreement, the initial proposal to allocate 60% of Value Added Tax (VAT) revenue based on derivation was revised. Instead, the new formula will see:
– 30% VAT revenue distributed based on derivation
– 50% shared equally among states
– 20% allocated based on population*
This adjustment aims to create a more balanced distribution of revenue across the country.
Sources within the Senate and House of Representatives revealed that the bills would receive accelerated hearings. However, while the Senate is expected to continue deliberations immediately, the House of Representatives may delay discussions until Wednesday, as today’s session will be dedicated to a valedictory session for the late Deputy Chief Whip, Hon. Adewunmi Onanuga.
The Senate Finance Committee, which was previously tasked with conducting a public hearing on the bills within six weeks, is expected to fine-tune them in line with the new agreement. Meanwhile, the House of Representatives, which had earlier suspended debates due to opposition from 73 northern lawmakers, is now expected to reconsider the bills under the new compromise.
The government is pushing for the bills to be passed into law by the end of March 2025, with implementation set to begin by July 1, 2025.
Speaking on the timeline, Taiwo Oyedele, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, stated, “We expect that these tax reform bills will be approved before the end of Q1 2025 so that taxpayers can prepare for implementation by July 1.”
As the National Assembly resumes today, stakeholders—including state governors, business leaders, and economic analysts—will closely monitor proceedings, as the outcome of these reforms will have a significant impact on Nigeria’s economic future.

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