Nigeria’s House Approves Tax Reform Bills, Retains 7.5% VAT, Alters Revenue Sharing Formula

The House of Representatives approved the Tax Reform Bills
The Bills will undergo further scrutiny in the Senate
VAT rate remains at 7.5%, rejecting the proposed increase to 12.5% for 2026
New VAT revenue-sharing formula introduced
10% of VAT revenue to the federal government
55% of VAT revenue to state governments, including the Federal Capital Territory, based on 20% population and 30% consumption
35% of VAT revenue to local governments

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.