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

Source: ensafrica.com

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.