Senate passes two tax reform bills to modernize Nigeria’s fiscal framework, retains VAT at 7.5%

The Nigerian Senate approved two major tax reform bills, including the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill, aiming to modernize the country’s fiscal system.
The Senate rejected the proposed increase in VAT from 7.5% to 10%, keeping it at 7.5%, and introduced a 4% development levy to fund key government agencies like TETFUND and NITDA.
Senate leaders emphasized the importance of these reforms for improving governance, tax administration, and sustaining funding for critical sectors such as education and cybersecurity.
The remaining two tax reform bills are scheduled for consideration, with full legislative approval pending to enhance Nigeria’s revenue collection mechanisms.