Tinubu to sign landmark Tax Reform Bills into law, ushering new fiscal era for Nigeria

…To simplify levies, strengthen revenue system

President Bola Ahmed Tinubu is set to sign into law four landmark tax reform bills on Thursday, in what officials describe as a pivotal moment for Nigeria’s economic transformation agenda.

The bills, the Nigeria Tax Bill (Ease of Doing Business), Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill, were recently passed by the National Assembly after months of broad consultations with stakeholders from both the public and private sectors.

The official signing ceremony will be held at the Presidential Villa in Abuja and is expected to be attended by the Senate President, Speaker of the House of Representatives, majority leaders of both chambers, finance committee chairpersons, state governors, and senior cabinet members.

The new laws are designed to modernise and unify Nigeria’s fragmented tax system, widely regarded as a significant obstacle to business growth and efficient revenue collection.

The Nigeria Tax Bill consolidates existing tax laws into a single, streamlined framework. By reducing the number of taxes and removing duplication, it aims to lower compliance costs and create a more predictable environment for investors.

The Nigeria Tax Administration Bill introduces a harmonised legal and operational structure for tax collection across federal, state, and local governments. The goal is to reduce discrepancies in enforcement and encourage collaboration between various levels of government.

Another key reform is the creation of the Nigeria Revenue Service (NRS), which will replace the Federal Inland Revenue Service. The NRS will have expanded powers to collect both tax and non-tax revenues and will operate with enhanced autonomy, guided by strict performance, transparency, and accountability standards.

The Joint Revenue Board (Establishment) Bill will formally establish intergovernmental cooperation mechanisms among revenue authorities. It will also create essential oversight bodies such as a Tax Appeal Tribunal and an Office of the Tax Ombudsman to protect taxpayer rights and improve public confidence in the system.

Economists have noted that these reforms could significantly improve Nigeria’s tax-to-GDP ratio, one of the lowest in Africa, while reducing dependence on oil revenue and foreign borrowing.

By broadening the tax base and overhauling outdated structures, the measures could open up fiscal space for critical investments in infrastructure, healthcare, and education, while also enhancing Nigeria’s appeal to both local and international investors.

“This is more than legislative tidying, it’s a fiscal reset,” said an analyst from the Centre for Tax Policy and Governance. “The real challenge will lie in the quality of implementation, institutional strength, and sustained political resolve.”

The business sector has largely welcomed the reforms, describing them as a major boost to investor confidence. “This sends a strong signal that Nigeria is serious about fixing its fiscal foundations,” said Dele Kelvin Oye, President of the Nigerian Association of Chambers of Commerce.

Some state governments have expressed support for the initiative but cautioned that implementation must respect the principles of balanced federalism and fiscal autonomy.

Labour unions and civil society organisations have called on the government to ensure that the new tax regime is inclusive and does not place an undue burden on low-income earners.

Meanwhile, global development partners such as the World Bank and International Monetary Fund are expected to publicly support the legislation as a long-overdue shift towards sustainable, non-oil revenue mobilisation.

As President Tinubu prepares to sign the bills into law, the moment is being seen not only as a legal milestone, but as the potential beginning of a broader economic restructuring.