Tinubu Signs Four Tax Reform Bills into Law, Hailed as Step Toward Economic Independence

On Thursday, June 26, 2025, President Bola Ahmed Tinubu signed four landmark tax reform bills into law at the Presidential Villa in Abuja, a move described as a bold step toward Nigeria’s economic independence. The bills—the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill—aim to unify Nigeria’s fragmented tax system, enhance revenue generation, and promote transparency. The signing, attended by Senate President Godswill Akpabio, House Speaker Tajudeen Abbas, and other key officials, followed extensive consultations with stakeholders, as announced by presidential spokesperson Bayo Onanuga. The reforms, effective January 1, 2026, are part of Tinubu’s Renewed Hope Agenda to streamline tax compliance, boost investor confidence, and reduce burdens on low-income earners and small businesses.

Rep. Ifeanyi Onuigbo, a member of the North East Development Commission (NEDC) Governing Board, praised Tinubu and the National Assembly, calling the reforms “the most comprehensive attempt ever to reform Nigeria’s tax system” and a foundation for economic prosperity. The Nigeria Tax Bill consolidates multiple tax laws into a single framework, repealing 11 laws and amending 13 others, while the Nigeria Tax Administration Bill standardizes collection processes with digital systems. The Nigeria Revenue Service (Establishment) Bill replaces the Federal Inland Revenue Service (FIRS) with a more autonomous Nigeria Revenue Service (NRS), managing both tax and non-tax revenues. The Joint Revenue Board (Establishment) Bill fosters federal-state cooperation, introducing a Tax Appeal Tribunal and Tax Ombudsman for dispute resolution. A new VAT sharing formula allocates 30% to generating states, 50% equally among states, and 20% by population, incentivizing local economic growth.

The reforms exempt businesses with less than ₦50 million annual turnover from company income tax and low-income earners (up to ₦1 million annually) from PAYE, while maintaining VAT at 7.5% and applying 0% VAT on essentials like food, healthcare, and education. Despite initial opposition, particularly from northern governors over VAT sharing, Tinubu stood firm, addressing concerns through legislative deliberation (Per Second News, June 26, 2025). Onuigbo linked the reforms to greater local government financial autonomy, enhancing national stability. Posts on X, like @iamdanzor_ and @Mario9jaa, praised the reforms’ potential to reduce oil dependency, though @BwalaDaniel noted implementation challenges. Economic analysts, including Chukwuema Eze, hailed the bills for balancing revenue growth with relief for the vulnerable, despite Nigeria’s low 13.5% tax-to-GDP ratio (Citizen Tribune, June 26, 2025).