The Senate has ceded more revenue to states as it passed two of the four much-anticipated Tax Reform Bills which are expected to overhaul Nigeria’s tax laws. The four bills are the Joint Revenue Board (Establishment) Bill, 2025, the Nigeria Revenue Service (Establishment) Bill, 2025, the Nigeria Tax Administration Bill, and the Nigeria Tax Bill.
Under the proposed new law, VAT revenue would be distributed as follows: 10% to the Federal Government, 55 percent to the states and the Federal Capital Territory and 35 percent to local governments. Currently, VAT revenue is shared on the basis of 15 percent to federal, 50 percent to states and 35 percent to LGAs. Senate President Godswill Akpabio disclosed that the remaining two bills will be considered in plenary today.
The Senate had spent close to two hours in closed session. The lawmakers approved the Bills following the consideration and adoption of recommendations contained in the Tax Reform Bills report which was submitted by its Committee on Finance led by Sani Musa on Tuesday.