On Wednesday, the President of the Senate, Godswill Akpabio, stated that the National Assembly’s decision to approve the tax reform bills submitted by President Bola Tinubu was motivated by the national interest.
Through his media aide, Eseme Eyiboh, Akpabio explained that the bills were passed after thorough negotiations, extensive stakeholder consultations, and transparent deliberations that prioritized national development above partisan or regional considerations.
The legislation approved includes the Joint Revenue Board (Establishment) Bill, Nigeria Revenue Service (Establishment) Bill, Nigeria Tax Administration Bill, and Nigeria Tax Bill — all key components of President Tinubu’s fiscal reform agenda under the Renewed Hope initiative.
Originally presented to the National Assembly in November 2024, the bills were adopted by the Senate last week after several months of rigorous debate.
“These bills form the cornerstone of the president’s economic reforms,” Akpabio said. “Once enacted, they will enhance Nigeria’s revenue collection system and reform tax administration to promote fairness and efficiency.”
The legislative journey was challenging.
Akpabio disclosed that early proposals, such as allowing states that generate tax revenue to retain 60% of Value Added Tax (VAT) proceeds, faced strong opposition, especially from northern lawmakers concerned about potential economic disadvantages to their region.
A compromise was reached, reducing the retention rate to 30% and substituting the term “derivation” with “place of consumption,” enabling consensus.
The bills also encountered resistance from some state governors and internal disagreements within the National Assembly.
“There were moments of intense disagreement, even among Senate leaders,” the statement noted. “However, Senator Akpabio’s diplomacy, wisdom, and consensus-building skills were crucial in guiding the process to a positive conclusion.”
The former governor of Akwa Ibom also praised his colleagues in both chambers for their support, singling out House Speaker Tajudeen Abbas for effectively rallying younger lawmakers.
Additionally, governors who initially opposed the bills were commended for eventually accepting the revised terms.
“Their cooperation proved pivotal,” Akpabio remarked. “By easing regional tensions and endorsing the amendments, the governors facilitated wider stakeholder acceptance.”
He emphasized that the legislative process was thorough and inclusive, involving public hearings and active stakeholder engagement.
The bills are now ready to be sent to the president for assent.
“With two years remaining in President Tinubu’s term, this marks a significant milestone,” the Senate President concluded. “Credit is due to all who contributed to this achievement.”
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