President Buhari has signed the finance bill into law, which aims to reform Nigeria’s tax system to align with global best practices and support MSMEs through the Ease of Doing Business initiative. The bill, which was passed by both chambers of the National Assembly in November 2019, is expected to amend six tax provisions to make them more responsive to tax reform policies and raise government revenues while incentivizing investments in infrastructure and capital markets.
In his remarks after signing the bill into law, President Buhari highlighted the significance of the Finance Bill, emphasizing that it is the first time since the return of democracy in 1999 that a Federal Budget is being accompanied by the passage of a Finance Bill designed to support its implementation and create an enabling environment for business and investment by the private sector.
President Buhari also expressed gratitude to the leadership and members of the Ninth National Assembly for their hard work and support in the passage of the landmark Deep Offshore and Inland Basin PSC Amendment Bill and the Finance Bill, both of which are vital to the successful implementation of the 2020 Budget.
The new law will bring changes to the tax provisions of the Customs and Excise Tariff Act to encourage local manufacturers and will result in an increase in Value Added Tax on specific goods and services from 5 percent to 7.5 percent.