A proposed amendment to the 1999 Constitution aimed at tackling multiple taxation across Nigeria has successfully passed its second reading in the National Assembly.
The development according to Channels TV was confirmed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who announced the progress via his official X handle.
Oyedele explained that the bill seeks to clearly define the taxation powers of the federal, state, and local governments to eliminate overlapping functions and conflicts.
According to him, the amendment also aims to establish clear boundaries regarding which taxes and levies each tier of government can impose, prohibit the unlawful outsourcing of revenue collection, and ensure that tax processes are transparent and accountable.
If enacted, the law will set a limit on the number of taxes that can be imposed on income, consumption, or property, while removing what Oyedele described as “nuisance taxes.”
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The measure will also protect taxpayers from harassment and enhance fiscal discipline across all government levels.
“Once successfully altered, this amendment will ensure that taxes are sustainably harmonised and the burden and related consequences removed once and for all. We are grateful to the National Assembly for this patriotic effort to address a critical problem in our tax system,” Oyedele stated on X.
The bill aligns with the Federal Government’s ongoing tax reforms, following the signing of four major tax-related legislations by President Bola Tinubu on June 26, 2025.
These include the Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025, and Joint Revenue Board (Establishment) Act 2025.
While the Revenue Service Act and Joint Revenue Board Act took immediate effect, the Tax Act and Tax Administration Act are expected to commence on January 1, 2026.
Together, these laws represent one of the most comprehensive overhauls of Nigeria’s tax system in decades.
Among their key provisions are exemptions for small businesses with annual turnover below ₦100 million or assets under ₦250 million, and a new income threshold that exempts individuals earning below ₦800,000 annually from personal income tax starting in 2026.
The reforms also impose stricter compliance measures, including mandatory e-invoicing for VAT-registered businesses and improved reporting obligations, while pushing for harmonisation of tax laws nationwide to enhance transparency and ease of doing business.
