The Nigerian Senate on Wednesday passed two of President Bola Tinubu’s four proposed tax reform bills, marking a significant step in the administration’s efforts to revamp the nation’s tax system.

The approved bills—the Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill—were passed after a two-hour deliberation and a majority voice vote, following earlier postponement to address contentious provisions.

However, the Senate rejected a proposed increase in value-added tax (VAT) from 7.5% to 10%, citing public concerns over the soaring cost of living.

Senate President Godswill Akpabio praised lawmakers for their cooperation, stating: “These bills will add immense value to governance and transform the way taxes are collected and distributed in Nigeria.” He vowed that the Senate would conclude work on the remaining two bills on Thursday.

Deputy Senate President Barau Jibrin also commended senators for their maturity and consensus-building efforts, noting that earlier disagreements were resolved through wide stakeholder engagement.

The bills, initially submitted to the National Assembly in October 2024, aim to enhance revenue collection and improve fiscal management. With the House of Representatives having already passed all four, the Senate’s approval brings Nigeria closer to a reformed tax regime—pending presidential assent.