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Tax Reform Bills Propose New Sharing Formula, Cede 55% to State Govt

The Senate on Thursday resumed its debate on the Tax Reform Bills, a set of four legislative proposals to increase value-added tax (VAT) distributable to the subnational governments to 55% while reducing the federal government’s share to 10%.
The new legislative regimes also proposed zero VAT on exports and essential consumptions by the masses and grant of input VAT credit on assets and services in addition to goods consumed by businesses to lower the cost of production
These far-reaching initiatives were contained in the lead debate of Leader of the Senate, Senator Opeyemi Bamidele on the Tax Reform Bills at the Senate Chamber, National Assembly Complex, Abuja yesterday.
The Federal Executive Council had proposed the Tax Reform Bills comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024.
The bills elicited spirited interests among key lawmakers and stakeholders across party lines, a situation that informed the leadership of the Senate to invite Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele and Chairman, Federal Inland Revenue Service, Dr. Zacch Adedeji to brief its plenary.
Leading debate at the plenary, Bamidele reeled out far-reaching proposals contained in the Tax Reform Bills, which according to him, aims at simplifying the tax landscape, reducing the burden on small business and streamlining how taxes are collected.
In the area of tax exemptions, Bamidele pointed out that those, whose salaries are not more than the minimum wage from Pay As You Earn (PAYE) deductions, would be exempted from the tax regime.
He also said small businesses with annual turnover of N50 million or less “are equally exempted from payment of taxes,” a key pro-business initiative that encourages job creation; deepens ease of doing business and incentivises more investments.
Similarly, the senate leader explained that there was a proposed huge reduction in company income tax from the current 30% to 25% that would last for at least two years.
He said: “As part of deliberate attempt to curtail the incidence of double taxation and multiplicity of taxes and levies, multiple taxes hitherto paid by companies under various tax heads namely 2.5% education tax, 0.25% NASENI tax have been harmonized into a development level of 2% which by 2030 will be applied to fund the newly established student loan scheme which will benefit many Nigerian youths.
“Unlike what is obtainable under the existing tax regime whereby the Federal Government takes a lion share of VAT revenues, it is proposed that the sharing formula should allow the State Government share 55% of VAT revenue from the current 15% to 10% sharing formula.
“However, Local Governments share of VAT revenue remains unaffected. Relatedly, basic items consumed by Nigerian households such as food items, medical services and pharmaceuticals, educational fees, electricity etc. are exempted from VAT.
“Again, as part of efforts to ease the administration of income taxes and levies across the Federation, there is a reasonable effort made to consolidate core tax statutes and related tax legislations,” Bamidele explained.
Contrary to misrepresentations in the public domain regarding the intendment of the Bills under consideration, Bamidele explained that the bills contained innovative and people-oriented proposals as part of the government’s deliberate fiscal and tax reform measures to cushion the effect of ongoing broader economic policies such as the removal of subsidy on petroleum products, renewed efforts to implement cost -reflective electricity tariffs in the power sector etc on Nigerian citizens.
In his contribution, former Chief Whip of the Senate, Senator Ali Ndume (Borno South) claimed that his problem was about timing and the issue of derivation.
He added that the Constitution of the Federal Republic of Nigeria, 1999 (as amended) must be amended before the Tax Reform Bills should take effect, therefore calling for its immediate withdrawal.
Ndume observed: “I am not against the reform, my problem is timing and the issue of derivation make the reform contagious. The 1999 Constitution has to be amended before the bills can be effective.”
However, the Chief Whip of the Senate, Senator Mohammed Munguno (Borno North) expressed strong objection to Ndume’s submissions, asking the Senate to disregard it and pass the bills for second reading.
Munguno urged the Senate to pass the bill into second reading, advocating that all areas of concern would be addressed at the public hearing stage.
After the debate that featured Chairman, Senate Committee on Finance, Senator Sani Musa and Chairman, Senate Committee on Ecology, Senator Seriake Dickson, the Senate unanimously passed the bills into second reading following Munguno’s final position.
In his remarks, the President of the Senate, Senator Godswill Akpabio referred the bill to the Senate Committee on Finance, advising the Committee to invite all the stakeholders to the public hearing to address all areas of concern.
News
INEC ought to have archived recall petition long ago-Senator Natasha

Senator Natasha Akpoti-Uduaghan on Thursday hailed the Independent National Electoral Commission (INEC) for rejecting a petition to recall her as the lawmaker representing Kogi Central Senatorial District.
The lawmaker, who was a guest on Channels Television’s Politics Today, said the electoral umpire should have thrown out the petition long before it did on April 3, 2025.
“I’m a lawyer. I’m a senator and I understand how Nigeria works. For me, the most important thing is this recall process has been stalled.
“I give kudos and credit to INEC even though I believe they should have thrown it away from the get-go.
“I think it was void ab initio because there is no law in the Electoral Act that says a petition should be discarded just because there is no address but again, what if the address is false?”
The Peoples Democratic Party (PDP) chieftain argued that most of the addresses provided in the petition for her recall were false because most houses in her district weren’t labelled.
Even though INEC did count 208,000 signatures, I bet you if they had gone into the verification stage, they would have struggled to even have 500 people come out to attest to signing that,” she added.
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We’re putting together new 2025 Budget for Rivers-Ibas

…hosts Delegation Of Rivers NASS Caucus
The Administrator of Rivers State, Vice Admiral (Rtd) Ibok Ete Ekwe Ibas, has said that an appropriation bill for 2025 is being articulated to provide for critical development concerns in healthcare delivery, education, agriculture and infrastructure.
Vice Admiral (Rtd) Ibas also said that the anticipated budget will cater to creating more employment opportunities for Rivers people and advance delivery of technology in critical facets of public life.
The administrator gave the hint when he hosted the delegation of Rivers State caucus at the National Assembly, led by Dr Barinada Mpigi, the Senator representing Rivers South-East District, at Government House in Port Harcourt on Thursday.
Those on the delegation included Senator Allwell Onyesoh, the minority leader of the House of Representatives, Rep. Kingsley Chinda, Hon Dumnamene Dekor, Hon Solomon Bob, Hon Cyril Godwin Hart,
Hon Blessing Amadi, Hon. Felix Nwaeke, Hon Kelechi Nwogu, and Hon Victor Obuzor
Ibas said he has been resolute, since assumption of office, to restore law and order, and with support from the security agencies, an environment has been created where Rivers residents feel valued and safer.
The Administrator stated that the commitment is to make Rivers a model of peace in the comity of States, with a stable economy and citizens courageous to pursue their livelihood without fear or molestation.
“In addition to our peace building efforts, we are also focused on the economic stability and development of Rivers State.
“Since the Supreme Court verdict on the state’s budget, we have acted swiftly and decided to put together a new budget that reflects our commitment to healthcare, education, social services, and continued infrastructural development.
“We have worked diligently to ensure that the process is transparent, inclusive, and most importantly expedited. Our goal is to ensure that we do not lose any more time in making the necessary investments that will improve the lives of citizens.”
Vice Admiral (Rtd) Ibas stated: “The budget which is been finalized focuses on creating job opportunities and investing in key sectors such as agriculture, infrastructure, and technology.
“We understand the urgency of this initiative, and we are committed to ensuring that they are implemented without delay.”
The Administrator noted that to get the task done, the support of the legislators will be required as key representatives of Rivers State in the National Assembly.
He sued for their assistance in securing the necessary resources and legislative backing that would bring the initiative of his administration to fruition.
“Your partnership is critical to success in ensuring that Rivers State remains on the path of progress and enduring peace for future generations.”
He explained that in the face of the challenges that beset Rivers, which led to the State of emergency declared by President Bola Tinubu, dialogue, community engagement and reconciliation were deplored to build trust among the citizenry.
He noted that the people of Rivers State have shown incredible resilience and patience in the efforts taken so far to restore the State back to the path of peace and respect for the law.
Vice Admiral (Rtd) Ibas assured that his administration remains committed to achieving enduring peace for the state.
He said: “Beyond security, we have prioritised community engagements as a central part of our strategy. Dialogue, reconciliation, and inclusivity have been key to building trust among our people.
“We are determined to strengthen the bond of unity in Rivers State and to foster an environment where every citizen feels valued, heard, and respected. Together, we are making strides in ensuring that peace becomes a permanent feature of our state.”
Responding, Senator Barinada Mpigi, representing Rivers South-East District, said they are dedicated representatives of Rivers people at the National Assembly and resolved to support all efforts that will bring development to the State.
While commending the administrator for the modest successes he had achieved so far, Senator Mpigi pledged the support and cooperation of the legislators to ensure the return of the state on the path of law and order.
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Just in: Shettima jets out to attend Senegal’s independence

Vice President Kashim Shettima has departed Abuja for Dakar, Senegal for official assignment.
The VP is expected to represent President Bola Ahmed Tinubu at the West African nation’s 65th Independence Anniversary celebrations.
Senegal marks its Independence Day on April 4 each year, commemorating its liberation from French colonial rule in 1960.
The annual celebration is a significant event featuring national parades, cultural displays, and ceremonies highlighting the country’s achievements and unity.
A statement issued on Thursday by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, said Shettima’s participation followed an official invitation from Senegalese President, Bassirou Diomaye Faye.
This underscored the strong diplomatic and economic ties between Nigeria and Senegal.
The two nations share longstanding relations, particularly within the Economic Community of West African States (ECOWAS), fostering cooperation on regional security, trade, and development initiatives.
The event is expected to reaffirm Senegal’s commitment to democratic governance and regional cooperation.
Vice President Shettima is scheduled to return to Nigeria immediately after the one-day celebrations, continuing his engagements in national development and diplomatic outreach.
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