Analysis: As Tinubu signs 4 Tengara Tax Reform Bills into Law: What does it mean to the Nigerian economy

On Thursday, the President of the Tinubu Soccer is expected to sign the law of four tax reform bills aimed at overhauling the complex and inefficient income system of Nigeria.

According to the president, this reform marks an important milestone in the country’s fiscal history and is ready to re -establish a tax landscape for individuals and businesses.

Bill: Nigerian Tax Bill, Nigerian Tax Administration Bill, Nigerian Revenue Service Bill (Establishment), and the Joint Revenue Council Bill (Establishment), has been in work for several months and passed by the National Assembly after consulting with stakeholders in all public and private sectors.

Bayo Onanuga, a special advisor to the President of Information and Strategy, confirmed the development in a statement on Wednesday night, describing reforms as “transformational.”

The bill will be signed into a law in the presidential villa in Abuja in front of several high-ranking officials. The expected high officials include the President of the Senate Godswill Akpabio, DPR Speaker Tajudeen Abbas, and Minister of Finance Wale Edun, among others. The inclusion of the governor and leader of the income committee underlined the multi-tier cooperation intended to be fostered.

What the new law wants to do

The core of this reform is a mission to modernize tax administration, streamline income collection, and encourage compliance. Each bill brings a different purpose:

1. Nigeria Tax Bill (Ease of Business):
   This bill consolidates the Fragmented Nigerian Tax Law and is often contradictory into a single law. The aim is to reduce the amount of taxes and eliminate duplication, which historically burdens the business and minimize compliance. The slim framework is expected to reduce the cost and complexity of doing business in Nigeria.
2. Nigerian Tax Administration Bill:
   This law creates a harmonious legal and operational framework for tax administration in all federal, state and local governments. By aligning the national tax process, he intends to minimize bureaucratic inefficiency and reduce conflicts between different government levels of tax jurisdiction.
3. Nigerian Revenue Services Bill (Establishment):
   The main focus of the reform package, this bill revoked the Federal Inland Revenue Service (FIRS) Law and formed the Nigeria Revenue Service (NRS), a more autonomous national income agency and was driven by performance. The expanded mandate will include the collection of non-tax revenues, and introduce a framework for transparency, accountability, and service provision.

Joint Revenue Council Bill (Establishment):
Designed to foster cooperation between federal, state and local tax authorities, this bill creates formal governance structures to oversee joint income efforts. In particular, it includes the creation of a Tax Appeal Court and the Tax Ombudsman Office, both are intended to protect the rights of taxpayers and offer a way for dispute resolution.

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What does it mean to the Nigerian economy

When Nigeria faces reduced oil income, increased public debt, and inflationary pressure, steps to reform tax administration are strategic and necessary. This is what can be meant by a new tax framework in practical terms:

1. Increased income

The tax ratio to Nigerian GDP, which floated below 10%, is one of the lowest in Africa. By streamlining the collection and reducing avoidance and inefficiency, reforms can significantly increase government income without introducing new taxes. This will help finance critical infrastructure and social services, reduce dependence on external loans.

2. Ease of business

Over the years, businesses in Nigeria have to navigate overlapping tax networks and are often arbitrary. The consolidated tax bill aims to simplify this environment, which can attract domestic and foreign investors. The tax system that can be predicted to reduce compliance costs and encourage formal sector participation, important materials for sustainable growth.

3. Federalism and fiscal coordination

The creation of the Joint Revenue Council and the Tax Administration Framework that is harmonized indicates efforts to improve coordination between government. Historically, states and federal governments have clashed over tax authorities and allocation. Integrated systems can reduce duplication and friction while increasing public finance efficiency at all levels.

4. Reform and Institutional Accountability

By replacing the FIR with the Nigeria Revenue Service, the government seems to be committed to modernizing tax collection through a model driven by performance. The inclusion of supervisory mechanisms, such as the Tax Ombudsman, signifies a shift towards a more transparent and responsible system that protects the rights of taxpayers.

5. Risk and challenges of implementation

While ambitious and commendable reform, implementation will be the key. Without proper training, digital infrastructure, and cooperation between institutions, the new framework can be shaken. Also, the confidence of taxpayers, especially among SMEs, remains low, and will take ongoing outreach and consistent results to shift public perception.

Is this the path to more just taxation?

For ordinary Nigerians, taxes often feel more like punishment than participation. With the cost of living that surge, many are worried about what reforms mean to them. The government insisting this law will not introduce new taxes but instead will make the system more efficient and fair.

If applied according to plan, this reform can reduce harassment from tax agents, bring clarity to payment obligations, and ensure that citizens see a more visible return on their contribution to a public wallet.

The signing of the four tax bills is a basic change in how Nigeria manages one of the most important development levers: domestic income. While the road ahead may be full of institutional obstacles and logistics, reforms offer the opportunity to rearrange the narrative of state taxes, from one of the confusion and coercion to one of the clarity, justice, and growth.

Whether the government can translate intentions into the impact will determine whether this law is truly a change in the game they promised.