A bill seeking to amend the 1999 Constitution to curb multiple taxation and streamline Nigeria’s tax structure has passed second reading at the National Assembly. The development was disclosed on Friday by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, via his official X handle.
According to Oyedele, the proposed constitutional alteration aims to clarify the taxation powers of the federal, state, and local governments to eliminate overlaps and conflicts.
The bill also seeks to clearly define the taxes and levies collectible by each tier of government and prohibit the unlawful outsourcing of revenue collection.
If eventually passed into law, the amendment will introduce limits on the number of taxes that may be imposed on income, consumption, or property. It will also remove nuisance taxes, prevent harassment of citizens in the name of tax collection, and strengthen transparency, fiscal discipline, and accountability in the tax system.
“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.
The update comes as the Federal Government announced that four major tax reform bills have been signed into law. The reforms include:
Nigeria Tax Act, 2025
Nigeria Tax Administration Act, 2025
Nigeria Revenue Service (Establishment) Act, 2025
Joint Revenue Board (Establishment) Act, 2025
President Bola Tinubu signed the bills on 26 June 2025. The Revenue Service Act and Joint Revenue Board Act took effect immediately, while the Nigeria Tax Act and Nigeria Tax Administration Act will commence on 1 January 2026.
The reforms constitute one of the most sweeping transformations of Nigeria’s tax system in decades. Key highlights include:
High exemption thresholds for small businesses—for instance, companies with annual turnover below ₦100 million and assets under ₦250 million may become exempt from corporate tax.
New personal income tax thresholds—reports indicate that from 2026, individuals earning below ₦800,000 annually may pay no income tax.
Stricter compliance obligations—businesses will face tighter record-keeping rules, compulsory e-invoicing for VAT-registered organisations, and enhanced transaction reporting.
A coordinated shift toward tax harmonisation across federal, state, and local governments to reduce duplication and improve the ease of doing business.
This constitutional amendment effort, combined with recent legislative reforms, signals a major push to modernize Nigeria’s tax landscape and reduce the burden on citizens and businesses.
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