Nine months ago, President Bola Tinubu presented the four tax reform bills to the National Assembly for consideration.

The bills include the Nigeria Tax Bill (Ease of Doing Business), the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The bills were structured to completely revamp Nigeria’s tax system, replacing the current practice that has been in place since the military administrations.

The bills generated heated controversies and disagreements over the months, but after extensive consultations with experts and modifications from the lawmakers, they are now ready to be signed into law.

A statement signed by Mr. Bayo Onanuga, the Special Adviser to the President on Information and Strategy, said the President would sign the four bills into law on Thursday, June 26, 2025.

The signing will take place at the Presidential Villa, Abuja, according to the statement from the presidency.

The Senate President, Speaker of the House of Representatives, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Attorney General of the Federation, Lateef Fagbemi, and the Chairmen of the Governors’ Forum and the Progressive Governors’ Forum will be in attendance.

There will also be other top finance and legal practitioners in attendance, as well as the members of the Tax Reform Committee led by the Chairperson, Taiwo Oyedele.

What will change with the new tax laws?

The signing of these four bills into law will change several things about Nigeria’s tax system, and here are some key ones to note.

One of the bills, the Nigeria Tax Bill, will create a unified legal framework to ease tax compliance for businesses.

This would effectively end multiple taxation and make tax processes more predictable for businesses.

The second bill, the Nigeria Tax Administration Bill, will reform Nigeria’s tax administration at all tiers of government.

This bill will address overlapping mandates that cause frequent disputes between the federal and state tax administrators and create a standard legal and operational framework for tax administration.

The third bill, the Nigeria Revenue Service (Establishment) Bill, repeals the Federal Inland Revenue Service Act. In its place, it will establish the Nigeria Revenue Service (NRS) as an autonomous and performance-focused body.

The NRS will not only be responsible for tax collection but also for non-tax revenues and will be expected to operate under strict accountability and transparency rules.

The fourth bill, the Joint Revenue Board (Establishment) Bill, also introduces a Tax Appeal Tribunal and an Office of the Tax Ombudsman.

This will be the institution that taxpayers go to when they have complaints or when disputes occur between the different tiers of government.

It will resolve the issues and enhance cooperation between them. While the tax burden does not necessarily increase for Nigerians, the law will bring more Nigerians into the tax net and reduce tax evasion.

The Presidency has also expressed optimism that the new tax laws will boost revenue generation for the government, improve the ease of doing business, and make Nigeria more attractive for domestic and foreign investments.

Tax analyst, Arabinrin Aderonke Atoyebi, described the law as one that would rebuild Nigerians' trust in the government again.

She commended the decision of the lawmakers to retain Value Added Tax at 7.5% as it does not increase the tax burden on Nigerians.

About the sharing formula, she said: “It’s a formula designed to balance fairness with performance, giving each state a stake while encouraging economic activity and good governance."

How Nigerians benefit from the tax bill

In related news, the Tax Reform Committee Chairman, Taiwo Oyedele, listed ways that Nigerians will benefit from the bills.

Oyedele noted that there is a complete exemption of low-income earners up to N1 million per annum, and reduced PAYE for those earning a monthly salary of N1.7 million or less annually.

Legit.ng also reported that there is zero (0%) VAT on food, healthcare, education, electricity generation, transmission, transportation, and others.