Bill seeking to clearly define and harmonize the taxation powers of the federal, state, and local governments scaled second reading in the House of Representatives
The House of Representatives has taken a major step toward reforming Nigeria’s fiscal framework, as lawmakers on Wednesday passed for second reading a bill seeking to clearly define and harmonize the taxation powers of the federal, state, and local governments.
The proposed legislation, titled “A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 (as amended), to Clarify the Taxation Powers of the Federal, State, and Local Governments; to Define the Scope of Taxes and Levies Collectible by Each Tier of Government; to Prevent Multiple Taxation and Unlawful Outsourcing of Revenue Collection; and for Related Matters,” is sponsored by the Deputy Speaker, Rep. Benjamin Kalu, alongside six other lawmakers.
Leading the debate on the general principles of the bill, co-sponsor Rep. Joshua Gana (PDP Niger), said the amendment seeks to bring clarity and order to Nigeria’s tax system, which has long been plagued by duplication, overlaps, and conflicts between different tiers of government.
According to him, the bill aims to “bring order where confusion reigns, create clarity where overlaps persist, and ensure that every naira raised, shared, or spent by government is traceable, lawful, and transparent.”
Gana expressed concern that many government agencies have resorted to unlawfully contracting private consultants or agents for tax collection — a practice he said fosters corruption, harassment of taxpayers, and revenue leakages.
“At the heart of this bill is a simple but transformative goal — to align the revenue powers of the federation, states, and local governments in a way that promotes efficiency, discourages duplication, and restores trust in the fiscal system,” he said.
ALSO READ: Cost of living crisis: Reps warn against unjust taxation
He further noted that Nigeria’s fiscal architecture “has become congested and conflicting,” with multiple taxes and levies often imposed on the same taxpayers by different levels of government. He cited recurring disputes over Value Added Tax (VAT), Stamp Duties, and Personal Income Tax as examples of the ongoing confusion.
The House subsequently passed the bill for second reading and referred it to the Committee on Constitution Review for further legislative action.
