New Tax Laws, Better Nigeria

Nigeria must work — this has always been our collective hope. So when news broke that the Senate had passed all four tax reform bills, many paused and asked: is this really happening? For years, our tax system felt broken — one of many government systems, from power to education and healthcare, that frustrated everyday Nigerians.

We’ve also remained vulnerable to the unpredictable global oil market, with our economy often at its mercy. That’s exactly why a shift is overdue. This time, it’s not about promises — it’s about real action.

President Bola Ahmed Tinubu recognized that a sustainable Nigeria needs a smarter tax system. One that ensures steady revenue, distributes the burden fairly, and restores trust in governance — north to south, rich or poor. That’s why the 2024 tax reform bills were introduced. Months of consultation and commitment have now led to the passage of:

• Nigeria Tax Bill 2024,
• Nigeria Tax Administration (Procedure) Bill 2024,
• Nigeria Revenue Service (Establishment) Bill 2024, and
• Joint Tax Board (Establishment) Bill 2024.

These bills mark a shift away from our oil dependency and empower states to take charge of their development.

Understanding the New VAT Sharing Formula

One of the standout reforms is the revised VAT sharing formula:

• 50% will be shared equally across all states,
• 20% based on population, and
• 30% based on actual consumption.

This structure rewards performance while ensuring fairness — a win for transparency and accountability in governance.

The Senate also confirmed the VAT rate will remain at 7.5%, rejecting calls for an increase — great news for consumers. Additionally, funding is secured for vital agencies like:

• Tertiary Education Trust Fund (TETFUND),
• National Agency for Science and Engineering Infrastructure (NASENI), and
• National Information Technology Development Agency (NITDA).

These agencies are essential for Nigeria’s future — supporting innovation, research, and education nationwide.

Beyond a Name: The New Nigeria Revenue Service

Another significant change is the transition from the Federal Inland Revenue Service to the Nigeria Revenue Service. But it’s more than a rebranding. The reform aims to:

• Strengthen state-level revenue generation,
• Empower local governments, and
• Enhance efficiency and transparency in tax collection.

Under the leadership of Dr. Zacch Adedeji, these goals are becoming reality. His forward-thinking reforms show that when competent leaders are in charge, real change is possible.

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What Comes Next?

With all four bills passed, Nigeria is on the brink of the most impactful tax reform in decades. The next step is harmonization — aligning the Senate and House versions of the bills. Once unified, they’ll head to the President for signing and be published officially.

The Nigeria Revenue Service will then begin full implementation, backed by the proven leadership of Dr. Zacch Adedeji.

This is the Renewed Hope Nigerians have been waiting for. The path to progress is now clearer than ever. These reforms are the tools to build a stronger, fairer Nigeria.

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