A New Dawn for Nigeria’s Tax System: National Assembly Set to Pass Harmonised Tax Reform Bills Introduction The recent announcement by Hon. James Faleke, Chairman of the House Committee on Finance, heralds a significant milestone in Nigeria’s journey toward a more transparent, modern, and development-driven tax regime. Following weeks of rigorous deliberations, the joint Conference Committee of both the Senate and the House of Representatives has concluded its harmonisation of four critical tax reform bills, setting the stage for their final passage and Presidential assent. This move represents not only a legislative triumph but a pivotal structural shift with profound implications for revenue generation, tax compliance, ease of doing business, and national development. Key Highlights of the Harmonised Bills Thorough Review and Clause-by-Clause Alignment The harmonisation committee, led by Hon. Faleke and Senator Sani Musa, conducted a detailed examination of every clause. This ensured alignment of policy objectives, elimination of ambiguities, and the preservation of taxpayer rights, thereby laying a foundation for fair and equitable tax administration. Strengthening the Legal Framework The bills reportedly address grey areas in: Value Added Tax (VAT) Development levies Collection of taxes by tiers of government Inheritance tax (now expunged) Cybercrime tax financing Defence and education funding through earmarked levies Proposed Institutional Reforms Tax Ombudsman: An independent platform to adjudicate tax-related disputes and serve as an alternative to regular courts—enhancing taxpayer trust. Specialised Tax Tribunal: To expedite resolution of tax matters, reduce litigation backlog, and ensure consistency in tax jurisprudence. Revenue Allocation for Strategic National Priorities The Senate confirmed that part of the revenue from the reformed tax framework would be channelled toward: Cybersecurity and cybercrime prevention Defence and security infrastructure Education via TETFund Welfare support for military personnel Implications for Nigeria’s Tax Ecosystem 1. Modernisation and Global Alignment The harmonised bills incorporate international best practices in taxation, a crucial step for Nigeria's compliance with global standards such as the OECD/G20 BEPS recommendations and digital economy taxation principles. 2. Increased Revenue and Fiscal Efficiency By broadening the tax base, clarifying administrative procedures, and introducing targeted levies, the reforms are poised to reduce revenue leakages and dependency on crude oil earnings. 3. Enhanced Taxpayer Confidence With mechanisms like the proposed Ombudsman and tribunals, these reforms will likely boost taxpayer morale, reduce fear of arbitrariness, and create a more consultative tax environment. 4. Digital and Defence-Focused Taxation Dedicating part of tax proceeds to cybercrime deterrence and national defence marks a bold step in leveraging tax for security and digital sovereignty—critical in today’s interconnected global economy. Challenges to Watch Implementation Capacity: Legislative success must be matched with administrative readiness. Training, technology upgrades, and inter-agency coordination will be essential. Clarity in Sub-National Taxing Rights: The bill’s handling of development levies and tax collection across tiers of government needs careful operationalization to avoid jurisdictional overlaps. Communication to Taxpayers: A nationwide enlightenment campaign is vital to explain the new provisions, especially to MSMEs and the informal sector, which often suffer from policy blind spots. Conclusion and Way Forward The imminent passage of the harmonised tax reform bills reflects Nigeria’s commitment to fiscal transformation. As the legislation moves to the Presidency for assent, it is imperative for stakeholders—government agencies, private sector actors, tax professionals, and citizens—to prepare for a new compliance era. Nigeria now stands at the cusp of a tax revolution. If the execution mirrors the intent, these reforms could redefine Nigeria’s tax landscape, strengthen institutions, and unlock sustainable development. Olatunji Abdulrazaq CNA, ACTI, ACIArb(UK) Founder/CEO, Taxmobile.Online