News

Tax Reform Bills: Rep Adopts Committe Report On Tax Reform Bills

Published

3 hours ago

March 13, 2025

Gloria Ikibah

…maintain 7.5% VAT, reject reintroduction of inheritance tax

By Gloria Ikibah

The House of Representatives has considered and adopted the four Tax Reform Bills on Thursday at plenary.

Chairman House Committee on Finance, Rep. James Faleke, presenting the report at the committee of the Whole, said the report was an extensive review of the Bills carried out by the Committee, with careful consideration of public input.

In the Committee of the Whole presided by the Speaker of the House, Tajudeen Abbas, the lawmakers considered the clause by clause of the four bills.

The proposed piece of legislation aimed at overhauling Nigeria’s tax framework includes: the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

Key adjustments were made to the Nigeria Revenue Service Bill, Joint Revenue Board (Establishment) Bill, and Nigeria Tax Administration Bill.

Nigeria Tax Administration Bill

Faleke sated that under the Nigeria Tax Administration Bill, the committee retained Value Added Tax, VAT, at 7.5% despite initial proposals to increase it gradually to 15% by 2030. The Committee also made changes to income tax provisions for petroleum operations (Section 78), setting the tax rate for petroleum gains at 30% instead of the previously higher rate of 85%.

The House has also rejected the proposed reintroduction of inheritance tax under the guise of taxation of family income.

Provisions related to excise duties were deleted across various bills due to concerns about their economic impact. The Committee also addressed definitions related to small companies, raising the turnover threshold for their classification to ₦100m while maintaining the asset cap at ₦250m.

New penalties were introduced for non-compliance by Virtual Assets Service Providers (VASPs), which include hefty fines and potential suspension of licenses.

While submitting the report, Faleke reaffirmed the importance of the Tax Reform Bills to Nigeria’s economic development, stating that, “These Bills are critical to the implementation of a modern, transparent, and efficient tax system that will foster economic growth and improve revenue collection.

Faleke stated: “There was a call for deletion of the proposed reintroduction of inheritance tax. Under the guise of taxation of family income as this oversteps divine jurisdiction which places inheritance matters within the scope of Sharia and customary laws of the north and south respectively. So in the amendment, the inheritance tax is defined as inheritance before distribution cannot be taxed.

“Before distribution. Reduction of VAT rates to 5% or alternatively maintain the current rate of 7.5%. The committee adopted the 7.5%. Recommendations for the restatement of contributions towards Naceni Nidda and the court to ensure continuous funding from the development level. This of course was retained without sunset clauses.

“Suggestions to name NIPC as the relevant authority in respect of priority sectors and company operating the area. This of course was amended and adopted. Appeal to reinstate the need for a tax accordingly.

He said :”During the retreat held from March 3rd to 9th, 2025, the Committee reviewed submissions made by the public during the hearing. Representatives from key government agencies, including the Nigeria Export Processing Zones Authority (NEPZA), the National Agency for Science and Engineering Infrastructure (NASENI), the National Information Technology Development Agency (NITDA), and the Tertiary Education Trust Fund (TETFund), were also invited to provide further input.

“We carefully examined every submission to ensure the public’s opinions were incorporated into the review process,” the chairman stated, adding that the retreat involved a thorough review of existing laws proposed for repeal or amendment.

“The Committee recommended amendments to various pieces of legislation, including the Companies Income Tax Act (CITA), Value Added Tax Act (VAT), Personal Income Tax Act (PITA), and the Federal Inland Revenue Service (Establishment) Act, among others. The Petroleum Industry Act, Nigeria Export Processing Zones Act, and Oil and Gas Free Trade Zone Act were also amended to reflect the proposed changes.

According to the Committee Chairman, the bill if passed, has repealed all the companies income tax which was enacted in 1979, Value Added Tax 1993, Personal Income Tax 1993, Federal Income Revenue bill 2007, Capital Gains Tax 1967, Stamp Duties Act 1939, Casino Act 1965, Deep Offshore and Inland Basin Act and then of course Industrial Development Income Tax Relief 1971, Petroleum Profit Tax Act 1959 and of course Venture Capital Incentives 1993.

Several practical amendments were introduced in the Nigeria Tax Administration Bill to enhance efficiency. Section 7 extended the timeline for issuing taxpayer identification numbers (Tax IDs) from two working days to five, allowing room for administrative delays. Additionally, a reduction in the timeline for companies ceasing operations to file their income tax returns (Section 11) from six months to three was introduced to prevent revenue loss.

The VAT system was also revised (Section 22) to ensure that taxable supplies are attributed to their place of consumption, irrespective of where returns are filed, addressing concerns of regional imbalances. The Committee introduced a VAT fiscalisation system (Section 23), requiring the development of further regulations to ensure the system’s effectiveness.

Amendments were made to the reporting thresholds for banking transactions (Section 28), raising them from ₦25m to ₦50m for individuals and from ₦100m to ₦250m for corporate entities. Section 60 mandated court orders before the tax authority could seize movable assets, reinforcing the need for judicial oversight.

One of the most notable additions is the mandatory provision of access to electronically stored taxpayer information (Section 61), in light of the increasing shift from manual to electronic storage.

The Committee also amended Section 77, introducing a new formula for distributing VAT revenues to local governments, ensuring that 70% is distributed equally and 30% based on population.

Nigeria Revenue Service Bill

Significant amendments were made to Section 4 of this bill, which defines the functions of the Nigeria Revenue Service (NRS). The Committee limited the NRS’s scope to exclude individual taxpayers in states and the Federal Capital Territory (FCT), shifting their focus to federal-level revenue.

The composition of the governing board was also revised. Section 7 now requires the board to include six executive directors, appointed by the president from each geo-political zone on a rotational basis. Additionally, one representative from each state and the FCT will sit on the board to ensure proper federal character representation.

Section 13 introduced new qualifications for the Secretary to the Board, who must be a lawyer, chartered accountant, or chartered secretary at the level of Assistant Director or higher. Amendments to the funding of the NRS introduced a fixed cost-of-collection rate of 4% of total revenue, minus royalties, to be appropriated by the National Assembly.

Moreover, the NRS’s borrowing powers (Section 28) were tightened, requiring approvals from both the Federal Executive Council and the National Assembly before any loans can be secured.

Joint Revenue Board (Establishment) Bill

The Joint Revenue Board Bill saw adjustments aimed at improving oversight and transparency. Section 25, which previously outlined the qualifications for Tax Appeal Commissioners, removed the requirement for commissioners to have experience managing businesses, which the Committee deemed irrelevant.

The Committee also emphasized the independence of the Tax Ombud’s office in Section 43 by funding it directly through the Consolidated Revenue Fund, eliminating gifts or grants that could introduce biases. Similarly, provisions were made for additional office expenses under Section 44.

The Committee further introduced new regulations to ensure that the Evidence Act is strictly adhered to during tax appeal proceedings. A significant change was the establishment of independent funding for the Tax Appeal Tribunal (TAT), freeing it from dependence on the Federal Inland Revenue Service (FIRS) to avoid conflicts of interest.

News

New Tax Laws Will Be Beneficial To Nigerians – Chairman Finance C’ttee

Published

3 minutes ago

March 13, 2025

Gloria Ikibah

By Gloria Ikibah

The Chairman House of Representatives Committee on Finance, Rep. James Faleke, has guaranteed that the new tax laws resulting from the reform bills will be Favourable to all Nigerians.

Speaking with journalists on Thursday, Rep. Faleke gave this assurance after the House reviewed and approved the report on four tax reform bills in Abuja.

The bills under consideration include the Nigerian Tax Bill, the Tax Administration Bill, the Revenue Tax Board Bill, and the Nigerian Revenue Service Establishment Bill.

“These bills took three full days of public hearing, we took memoranda from more than 80 critical stakeholders and after the three days, we resorted to a retreat for eight days, debating all the clauses for each of the bills.

“I am glad that members of the house saw that we had done a thorough job and they have approved all our recommendation.

“We want to appreciate our members and all Nigerians who showed interest in this bills and we assure that the laws that will come after these bills acceptable by all Nigerians”, he said.

The Chairman commended the leadership of the House for giving the responsibility to the committee of processing the tax bills and to lay them before the house.

He praised President Bola Tinubu for taking the initiative to amend outdated tax laws, noting that some have been in place since 1959.

According to him, continuing with these old laws will not support the country’s economic needs, business growth, or revenue targets.

The Deputy Chairman of the committee, Rep. Saidu Abdullahi (APC-Niger), pointed out that no bill in the 10th Assembly had sparked as much debate as the tax reform bills.

He emphasized that under Speaker Tajudeen Abbas’ leadership, the House was able to bring all stakeholders together to reach a common ground.

Abdullahi explained that representatives from various geopolitical zones and regional leaders were involved in the discussions, helping to address public concerns.

He added that the committee’s recommendations were shaped by the contributions of all stakeholders.

“There were never seen as a perfect document, there were proposals from the Executive and the puli hearing provided Nigerians the platform to make the better and from what we have seen today, the whole country represented by the lawmakers have assented to it,’’ he said.

Also speaking, Rep. Ikeagwuonu Ugochinyere (PDP-Imo) said that the process was transparent as the consultants and the executive all made adjustments to reflect the will of the people.

“Even though we are from the opposition, we are so proud of this historic moment that is going to bring more people in the tax net, create more revenue for effective running of government.

“There is going to be efficiency in tax collecting system and even small businesses are well protected; for me this is very historic and that is why all of us worked with the government and our colleague to ensure it sailed through today,’ he said.

Also the Chairman House Committee on Defence, Rep. Benson Babajimi said that the issues raised by all the relevant stakeholders ranging from inheritance tax, derivation, VAT etc were considered by the house.

“It is a good day for Nigeria, the injection that Nigeria needs to move into the comity of nations had been applied and the House of Reps have sanctioned it so we wait on the Senate to do the same,’’ he said

News

Rivers Assembly wants DSS to investigate CJ over age falsification

Published

2 hours ago

March 13, 2025

Kayode Sanni-Arewa

The Rivers State House of Assembly has asked the Department of State Services to investigate the Chief Judge of the State for alleged age falsification.

This was the subject of plenary on Thursday at the Assembly following the presentation of some documents to the assembly by the leader of the House, Hon Major Jack.

Afterwards the Deputy Speaker, Hon Dumle Maol raised an allegation against the Chief Judge of the state, Simeon Amadi.

He said , “These document before me simply say that the Chief Judge of the state, Justice Simeon Amadi falsified his age in service. Mr Speaker, that is a very serious allegation, and I do hope that this House takes legislative notice.”

The House debated on it and resolved to write a letter to the Director of the DSS to do its investigation and revert to the House on their findings.

In his remarks, the Speaker, Martin Amaewhule called for an investigation into the alleged age falsification against the state chief judge.

He said, “The documents are only suggesting a case of age falsification by the honourable Chief Judge of the state, Simeon Amadi. What it means is that there has to be an investigation to that effect.”

After a voice vote, the House eventually agreed to write the DSS to investigate the age falsification allegation against the Chief Judge.

News

Wike notifies me each time he wants to visit Assembly -Ex-Speaker

Published

3 hours ago

March 13, 2025

Kayode Sanni-Arewa

A former Speaker of Rivers State Assembly, Ikuinyi-Owaji Ibani has confirmed that each time his Governor, Nyesom Wike wants to visit, he personally notifies him.

Ibani was Speaker of the Rivers State House of Assembly between 2015 and 2023 when Nyesom Wike was governor

The former Speaker was a guest on Channels Television’s Sunrise Daily breakfast programme on Thursday.

Ibani, who referenced his eight-year tenure as Speaker, said then-governor Nyesom Wike informed him behind the scenes of his planned visits to the Assembly before he showed up.

The pro-Wike ex-lawmaker said, “I operated as Speaker from 2015 to 2023. When Nyesom Wike, the Minister of the Federal Capital Territory (FCT) was governor, I informed him to look at the state of the Assembly Quarters.

“He had to write to me; he had to call me that he would be visiting the Quarters of Rivers State House of Assembly.

I then put the members on notice that the governor of Rivers State was coming. He couldn’t have driven down there to inspect knowing that it is a different institution headed by a different official of government.”

There seems to be no end in sight in the protracted feud between the Wike-backed House of Assembly and Fubara as the governor was denied access to the Assembly Quarters on Wednesday when he showed up to re-present the 2025 Budget of the state, as mandated by the House after the Supreme Court verdict of February 28, 2025.

Ibani said what transpired on Wednesday between the Amaewhule-led Assembly was not unconnected to the frosty relationship between Fubara and Wike since 2023.

Ibani said, “What happened yesterday (Wednesday), nobody should treat it in isolation; it should be taken holistically. It didn’t just happen because it was to happen yesterday, it started from somewhere.

“When you are elected into a position of trust and authority, your personal interest should take the background while the interest of the people should take the foreground.

“You don’t know the legislative calendar of the legislature. A governor or a president cannot just walk to the assembly to present a budget.

“The process that will lead to that is the exchange that goes on behind the scenes to ensure that the governor comes and the budget is presented in the interest of the people.”