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Tax Reform Bills:Senate passes Nigeria Revenue Service,Nigeria Tax Administration Bills 

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Senate in session in the chamber

 

By George Mgbeleke

The Senate at plenary on Wednesday, passed two out of the four tax Reform bills after subjecting the bills (comprising Nigeria Revenue Service Bill and the Nigeria Administration) into clause by clause consideration.

Recall that the tax reform bills passed second reading in the Senate last November, and the House of Representatives passed them at third reading in March 2025, shortly before the lawmakers adjourned for the Easter and Eid-el-Fitr holidays.

In his committee’s report,Chairman Senate Committee on Finance, Senator Sani Musa said the committee members duly reviewed the provisions of the tax reform bills and conducted public hearings for public participation

According to Senator Musa, about 64 organisations, including Civil Society Organisations (CSOs), attended the public hearing, and a majority of them supported the bills.

On the sharing formula for Value-Added Tax, the senator recommended 10 per cent for the federal government, 55 per cent for state governments and the Federal Capital Territory, and 35 per cent for local governments.

He also recommended retaining 10 per cent of funding for TETFUND, 10 per cent for NASENI, and 10 per cent for NITDA.

Musa also noted that the committee included 5 per cent funding for cybersecurity and 10 per cent funding for defence.

The senator, therefore, recommended the passage of the tax reform bills with the argument that it would improve economic growth, simplify tax compliance and boost investor confidence.

Kebbi North Senator Yahaya Abdullahi supported the bills and urged his colleagues to support it.

Details of the recommendations on the two Bills are as follows:

Recommendations on the Nigeria Revenue Service (Establishment) Bill, 2025 (SB.584)

The objectives of this Bill should be amended as follows:

“To provide for a legal, institutional and regulatory framework for the administration of taxes and revenue accruable to the Government of the Federation, as prescribed by the National Assembly.”
2. Clauses 4 of the Nigeria Revenue Service Establishment Bill 2025, – functions of the Nigeria Revenue Service should be amended as follows:

a. Assess persons including corporations, companies and individuals chargeable with tax, other than individuals, resident in any state of the Federation or the Federal Capital Territory.
b. in collaboration with the relevant Ministries and Agencies of Government, subject to the approval of the Senate, review the tax regimes and promote the use of taxation to develop, stimulate and grow economic activities;
C. Adopt measures to identify, trace, freeze, confiscate or seize proceeds derived from tax fraud or evasion, in line with the provisions of this Bill;
3. Clause 7 (la) of the Nigeria Revenue Service Establishment Bill 2025 should be amended as follows:
“The Chairman of the Board who shall be the President; and (b) Executive Vice Chairman who shall be the head of the Revenue Service and subject to confirmation of the Senate”

4 Clause 13 (2) of the Nigeria Revenue Service Establishment Bill 2025 should be amended as follows:
“The Secretary shall be a lawyer, or a chartered accountant or a chartered secretary who shall not be less than the rank of a Deputy Director”

5. Executive directors should be appointed to the Board of the Service. We propose that the relevant clause be amended as follows:
“The President shall appoint six Executive Directors for the Service, each representing a geopolitical zone on rotational basis among the states in the zone in alphabetical order provided that the Executive Vice chairman and an Executive Director shall not come from the same state ”
6. The timeline for reporting by the service should not exceed 3 months after the end of the preceding year.

9.3. Recommendation on the Nigeria Tax Administration Bill (SB. 585)

10% to the Federal Government;

55% to the State Governments and the Federal Capital Territory; and
35% to the Local Governments.
(2) The amount of VAT revenue standing to the credit of states and local governments shall be
Distributed among them on the following basis:
State Governments:
Equality – 50%
Population -20%
iii. Place of consumption -30%
b. Local Governments -70%
i. Equality -30%.
ii. Population

3. Change the word “Derivation” to “place of consumption” to provide clarity
4. Penalties for the following offences were amended as follows:

Clause 100 – Failure to register:

(a) N100,000.00 in the first month in which the failure occurs; and
(b) N50,000.00 for each subsequent month in which the failure continues.

Clause 101 – Failure to file returns:

(a) N200,000.00 in the first month in which the failure occurs: and
(b) N50,000.00 for each subsequent month in which the failure continues

Clause 102 – Failure to keep books:

(b) on request by the relevant tax authority, fails to provide any record or book
Prescribed in this Act shall be liable to pay an administrative penalty of
In the case of a person other than a company, N10,000.00, and
In the case of a company, NI00,000.00.

5. Clause 107 – Failure to remit tax deducted at source or self-account: A person who
Fails to comply with subsections (1) and (2), shall on conviction for any of the offences under this section, in addition to the administrative penalty, be liable to a term of imprisonment not exceeding three years.
9.4. Recommendation on the Nigeria Tax Bill (SB. 586)

1. Development Levy: Retain the funding of TETFUND, NASENI, NITDA, Cyber Security and NELFUND from the Development levy using the following sharing formula:

i. Tertiary Education Trust Fund 50%:
i. Nigerian Education Loan Fund 15%
iii. National Information Technology Development Fund – 10%;
iv. National Agency for Science and Engineering Infrastructure 10%:
V. National Cybersecurity Funds – 5% and
vi. Defence Security Funds – 10%.

2. Retain the VAT rate at 7.5%

3. Company Income Tax rate 30%

4. Clauses 157 to 163 which provide for Excise Duty on Services should be deleted.

5. The provisions of the PIA that are proposed for amendments are outlined below:

The Petroleum Industry Act, No 6. 2021 is amended by deleting

(a) Part I-X of Chapter Four;

(b) the Fifth and Sixth Schedules;

(c) paragraphs 6, 9, 10, 11 and 12, of the Seventh Schedule: and

(d) subparagraph 6 of paragraph 14 of Part IV of the Seventh Schedule:

9.5. Having carefully considered the above, the Committee hereby recommends as follows:

That the Senate do consider and pass the following Bills

Joint Revenue Board (Establishment) Bill, 2025 (SB. 583).

Business & Economy

World Bank Report: ADC Ask Tinubu To Explain Missing  $12.4bn -Gap is equivalent to almost a quarter of the entire 202 federal budget

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George Mgbeleke

The African Democratic Congress (ADC) has called on President Bola Ahmed Tinubu to explain the $12.4 billion (about N16.5 trillion) gap in Nigeria’s external accounts identified in the World Bank’s October 2026 Nigeria Development Update.

In a statement signed by its National Publicity Secretary, Mallam Bolaji Abdullahi, the party said President Tinubu owes Nigerians a clear account of the discrepancy, particularly at a time when families struggling with the cost-of-living crisis are forced to account for every naira.

According to the report, Nigeria recorded a $12 billion current-account surplus and $6.2 billion in net financial inflows in the first half of 2026. That money should have strengthened the country’s reserves. Instead, the report identified a $12.4 billion gap.

The Bank said the gap reflects, in part, oil export earnings that were never brought home. It also noted that the return of export proceeds remains limited, partly because Nigerian oil has been pledged against several long-term loans.

“The scale is staggering,” the ADC said. “This unexplained gap is larger than the entire current-account surplus for the same period. It is about 5.6 times the $2.2 billion Nigeria attracted in foreign direct investment. In naira terms, it is almost a quarter of the N68.32 trillion 2026 federal budget.

“This cannot be dismissed as a minor accounting discrepancy. President Tinubu welcomed this report. He cannot celebrate one part of the report and stay silent on a gap bigger than the surplus that he and his government are celebrating.

“Due to President Tinubu’s failed policies, families across Nigeria are forced to skip meals and account for every naira just to survive. Meanwhile, money that could have been used to ease their hardship, is currently unaccounted for. Tinubu owes Nigerians an explanation.

“Sacrifice cannot be compulsory for everyday citizens while accountability remains optional for the government that is in charge of our collective resources.

The ADC called on the Federal Government to publish a full public reconciliation of the $12.4 billion gap and disclose all oil-backed loans and pledged crude commitments. It also demanded updated net reserve figures and clear evidence that higher revenues are improving essential services such as health, education and power.

“President Tinubu must open the books. Nigerians have sacrificed enough. We deserve answers.”

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Business & Economy

ABER CELEBRATES HRH QUEEN NOSIPHO MTHEMBU AS SHE RECEIVES AFRICA’S HIGHEST MINING HONOUR IN ZIMBABWE

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HRH Queen Nosipho Mthembu

By David Owei
The Convener and Founder of the Africa Blue Economy Roundtable (ABER), Dr. Piriye Kiyaramo, has congratulated the Deputy Chairperson of the Women’s Forum and Director of Blue Sovereignty & Traditional Ocean Governance, HRH Queen Nosipho Mthembu, on her conferment of the Outstanding Pan-African Mining Sector Leader and Visionary Award – the highest honour at the Africa Mining Convention Awards (AMCA) in Victoria Falls, Zimbabwe.

The congratulatory message was contained in a statement issued by the Director of Communication & Public Affairs, Hajiya Medina Dauda Nadabo, in Abuja on Friday.

Dr. Kiyaramo described HRH Queen Mthembu as an invaluable asset to Africa, stating that her recognition is a testament to her ingenuity, visionary leadership and forward-looking enterprise in the blue economy.

Jury Citation

In its citation, the AMCA Jury stated: “On the sacred soil of Zimbabwe, a nation whose mineral wealth has shaped Pan-African history – the Africa Mining Convention Awards Jury proudly confers its highest honour on Her Royal Highness Queen Nosipho Mthembu.

In the land of Great Zimbabwe, built on gold and vision, we honour a Queen whose own vision has built bridges between mines and oceans, between policy and people, between wealth beneath the soil and prosperity in the community.

She is honoured for her outstanding Pan-African leadership in transforming how Africa governs its mineral resources – championing beneficiation over extraction, inclusion over exclusion, and community prosperity over enclave development.

Through her leadership at the ABER Women’s Forum and her pioneering concepts of the Africa Blue Ocean Economy Institute (ABOEI) and Pan-African Coastal Community College (PACC), she has given Africa a practical roadmap to domesticate the Africa Mining Vision and empower women and youth in mining communities from Durban to Lake Victoria to the Zambezi.

For embodying the spirit of Ubuntu in mining leadership and for making Zimbabwe proud as host of this historic recognition, she is hereby inducted into the Pan-African Mining Leaders Hall of Fame.”

About ABER’s Mandate and Scope

The Africa Blue Economy Roundtable (ABER) is a pan-African, multi-stakeholder platform established to accelerate the domestication and implementation of the African Union’s Africa Blue Economy Strategy, the Africa Mining Vision, Agenda 2063, the Lomé Charter on Maritime Security and Safety, and the UN Sustainable Development Goals, particularly SDG 14 – Life Below Water.

ABER’s broad mandate and scope cover four strategic pillars: Policy Advocacy and Institutional Alignment: Advocating for an integrated approach that merges mining, maritime, and ocean governance into one sustainable development framework. Inclusive Growth – Women and Youth at the Centre: Driving the AU’s agenda for inclusive growth through the ABER Women’s Forum and Youth in Blue Economy Initiative, with a deliberate focus on access to leadership, ownership, finance and markets for women and youth in coastal and mining communities.

Capacity Building, Research and Innovation: Through its knowledge institutions, ABER provides research, vocational training, and innovation in ocean governance, sustainable fisheries and aquaculture, green shipping, mineral beneficiation, and the preservation of traditional ocean knowledge systems.

Investment Facilitation and Community Prosperity: Promoting value addition and value retention through the REMAP AFRICA doctrine – moving Africa from exporting raw minerals to producing finished goods – under the principle of ‘From Pit to Port, From Mine to Market.’

Dr. Kiyaramo noted that HRH Queen Mthembu’s induction into the Pan-African Mining Leaders Hall of Fame affirms ABER’s integrated model as the future of Africa’s sustainable development.

In her acceptance remarks, HRH Queen Mthembu dedicated the honour to women in mining and coastal communities across Africa and to the people of Zimbabwe as host nation.

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Business & Economy

HURIWA Raises Questions Over Tinubu’s Coastal Highway Realignment, Demands Accountability from Umahi

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National Coordinator HURIWA, Comrade Emmanuel Nnadozie Onwubiko

By Our Correspondent

The Human Rights Writers Association of Nigeria (HURIWA) has condemned the Federal Government’s decision to realign part of the Lagos-Calabar Coastal Highway with the existing East-West Road, describing the development as a disturbing indictment of the government’s infrastructure planning and accountability.

HURIWA said Works Minister David Umahi’s explanation that the realignment was necessary to address flooding and climate change had raised fundamental questions about the quality of the feasibility studies, engineering assessments and environmental evaluations conducted before the project was launched.

The association described the development as a potential national embarrassment, questioning why climate risks that should have been central to the original design were now being presented as a major justification for changing the route.

“How does a government embark on a multibillion-naira coastal highway project without adequately resolving fundamental questions about flooding, environmental risks and the most suitable route? Who approved the original plans, and who will take responsibility if avoidable errors are established?” HURIWA asked.

The association said Nigerians must not be expected to celebrate every change in project direction as a presidential achievement without first examining the reasons for the change, its financial implications and the consequences for the original project design.

HURIWA said Umahi’s disclosure that sections of the existing East-West Road would need to be raised by about two metres to address flooding exposed serious questions about whether the project’s environmental realities were adequately considered from the outset.

The minister had explained that President Bola Tinubu approved the use of the existing East-West Road for the stretch running from the Ondo State boundary into Edo State, rather than continuing with a new coastal alignment along that section.

Umahi also put the distance across the affected corridor at approximately 104 kilometres, including a proposed 45-kilometre bypass.

For HURIWA, the critical issue is not whether an existing road can be upgraded or a bypass constructed. It is whether the government conducted the necessary technical assessments before committing public resources to the original alignment.

“This is not a minor adjustment to a village access road. We are talking about one of the Federal Government’s flagship infrastructure projects. Nigerians deserve to know whether this change is the product of responsible engineering review or evidence of serious weaknesses in the original planning process,” the association said.

HURIWA warned that the government must not use climate change as a convenient explanation to avoid scrutiny of decisions taken before construction began.

While acknowledging that new technical information can legitimately require adjustments to major infrastructure projects, the association insisted that the government must demonstrate, with verifiable evidence, why the change became necessary and whether the risks could reasonably have been anticipated.

The association demanded that the Ministry of Works publish relevant feasibility studies, environmental impact assessments, engineering reports and documents explaining the revised alignment, subject to applicable legal and commercial restrictions.

It also called for disclosure of the financial implications of the change, including whether the realignment would increase or reduce project costs, affect contractual commitments or delay completion.

HURIWA urged the National Assembly to summon Umahi and relevant project officials to explain the circumstances surrounding the decision and establish whether due diligence was observed at every stage.

The association further demanded an independent technical and financial review to determine whether the original alignment was adequately assessed and whether public funds could be exposed to avoidable additional expenditure.

“If this government is serious about accountability, it cannot turn every presidential decision into a public relations victory while leaving taxpayers in the dark about the engineering and financial realities behind it,” HURIWA said.

The association added that any finding of negligence, professional misconduct or avoidable waste should attract appropriate sanctions, including disciplinary action against responsible officials and the removal of the minister where the evidence and applicable procedures justify such a measure.

HURIWA said the controversy also raised broader concerns about the tendency to announce ambitious infrastructure projects before Nigerians receive sufficient information about their technical foundations, financing arrangements, implementation risks and long-term sustainability.

It stressed that the Lagos-Calabar Coastal Highway must not become a project in which political visibility takes precedence over engineering discipline, environmental responsibility and value for public money.

“Nigeria is not a private estate, and public infrastructure is not a favour dispensed by political officeholders. Every major project must be properly conceived, transparently executed and open to scrutiny. If the original planning was deficient, Nigerians deserve the truth, not political applause for correcting a problem that should never have arisen,” the association said.

HURIWA maintained that the Federal Government owes Nigerians a detailed explanation of the realignment and must establish whether it represents a sound engineering decision, a necessary response to new information or a correction of shortcomings in the original project planning.

The association said accountability must follow the evidence, insisting that neither the President nor the Minister of Works should be shielded from legitimate public scrutiny over a project involving substantial public resources.

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