Home National Assembly passes second reading of Constitutional Amendment to end multiple taxation in Nigeria

National Assembly passes second reading of Constitutional Amendment to end multiple taxation in Nigeria

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‎By Joan Chioma Obinagwam
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‎ In an effort to overhaul Nigeria’s tax system, the National Assembly has advanced a constitutional amendment bill aimed at eliminating multiple taxation, passing its second reading.
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‎Confiance News gathered from the official X handle of the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, who hailed the development as a “historic step”, which promises to streamline revenue collection and reduce the burden on taxpayers.
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‎The bill seeks to alter the 1999 Constitution (as amended) to clearly delineate taxation powers among the federal, state, and local governments, preventing overlaps and conflicts that have long plagued businesses and individuals. Oyedele, in a statement shared on X (formerly Twitter), outlined the key objectives of the proposed amendments.
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‎”Specifically, the amendments seek to clarify the taxation powers of federal, state, and local government to prevent overlap and conflict; define the scope of taxes and levies collectible by each tier of government; and prevent unlawful outsourcing of revenue collection,” Oyedele stated.
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‎Additional provisions include introducing a ceiling on the number of taxes imposed on income, consumption, or property for any single taxpayer; striking out “nuisance taxes” and prohibiting harassment in the name of tax collection; and enhancing transparency, fiscal discipline, and accountability in revenue processes.
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‎Once enacted, Confiance News reports, the amendments are expected to harmonize taxes sustainably, removing the associated burdens “once and for all,” according to Oyedele. He expressed gratitude to the National Assembly for their “patriotic effort” in addressing a critical flaw in the nation’s tax framework.
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‎The push for these reforms comes amid widespread complaints from the private sector about the proliferation of taxes, which has been cited as a major deterrent to investment and economic growth. Multiple levies from different government tiers often result in double taxation, increased compliance costs, and aggressive collection tactics that border on extortion.
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‎Oyedele emphasized the broader implications: “This will ensure that taxes are sustainably harmonised and the burden and related consequences removed once and for all.”
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‎The bill’s passage through the second reading marks a crucial milestone, with public hearings and further deliberations anticipated before a final vote. If successful, it will require concurrence from at least two-thirds of state assemblies to become law.
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‎Supporters view the initiative as part of President Bola Tinubu’s broader fiscal reform agenda, aligning with efforts to boost non-oil revenue, improve ease of doing business, and foster economic recovery. Critics, however, caution that effective implementation will depend on robust enforcement mechanisms and political will across all government levels.
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‎In his post, Oyedele included a link to a video for further details (youtu.be/viEgpUDFKPg) and tagged the announcement with #FiscalReform, #NigeriaIsWinning, and #ProgressIsPossible, signaling optimism for the reforms’ impact.
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‎As Nigeria grapples with fiscal challenges, including inflation and revenue shortfalls, this constitutional tweak could pave the way for a more efficient and equitable tax regime, potentially unlocking greater productivity and investor confidence.
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‎Confiance News
learnt that the National Assembly has yet to announce a timeline for the next stages, but stakeholders are closely monitoring the process.

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