Senate President Godswill Akpabio has praised the recent passage of sweeping tax reform bills by the National Assembly, describing the outcome as a product of “national interest, inclusive legislative engagement, and strategic leadership.”

The legislative milestone, achieved last week, marks a significant shift in Nigeria’s fiscal structure, with the potential to overhaul the country’s tax and revenue administration for decades to come. Among the most debated provisions was an early proposal allowing tax-generating states to retain 60 percent of their Value Added Tax (VAT) collections, a clause that sparked heated debate and opposition, particularly from lawmakers representing Northern states.

The clause was eventually modified following bipartisan negotiations. A compromise was struck that reduced the retention rate to 30 percent and substituted the term “derivation” with the more neutral “place of consumption,” addressing concerns over regional equity and fiscal imbalance.

“We must commend the courage of our governors who, despite initial resistance, accepted the revised framework in the spirit of unity,” Akpabio said during a briefing.

The reform process also encountered resistance from state executives and divisions within the legislature, but Senate President Akpabio lauded the final consensus, especially the efforts of Speaker of the House of Representatives, Tajudeen Abbas, for rallying younger legislators toward what he called “a collective national cause.”

“This was not an easy process,” Akpabio admitted. “But in the end, strategic leadership prevailed, and the spirit of patriotism guided our deliberations.”

If enacted into law, the bills promise to streamline tax oversight, strengthen fiscal federalism, and close longstanding leakages in Nigeria’s public finance system, a move many experts believe is overdue for Africa’s largest economy.

The legislation is now awaiting assent by President Bola Tinubu, whose administration has expressed support for measures aimed at improving revenue generation and strengthening subnational fiscal capacity.