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yesterday

Nigerian Senate Finalizes Tax Reform Bills, Retains VAT Rate

All four tax reform bills proposed by President Tinubu have been passed with key amendments, and a reconciliation committee has been formed to harmonize versions before presidential assent.

People move on a street of Marina in Victoria Island, Lagos, Nigeria February 15, 2019. REUTERS/Temilade Adelaja

Overview

  • The Senate passed the final two tax reform bills, completing legislative approval of all four bills aimed at restructuring Nigeria’s tax framework.
  • A proposed VAT increase from 7.5% to 15% by 2030 was withdrawn following stakeholder objections, retaining the current rate of 7.5%.
  • Statutory funding for agencies like TETFund, NITDA, and NASENI was preserved, addressing public and union concerns over potential cuts.
  • The 2% education tax proceeds will now be redistributed among TETFund, NELFund, NITDA, NASENI, Cybersecurity, and Defence Security agencies.
  • A 15-member committee has been established to reconcile the Senate and House versions of the bills before submission to President Tinubu for assent.