President Muhammadu Buhari has transmitted the 2021 Finance Bill to the National Assembly for consideration and passage into law through a letter dated 30 November 2021. The letter which was read at the plenary session of the Senate on Tuesday, 7 December 2021 and in the House of Representatives on Wednesday, 8 December 2021.
In the letter, President Buhari stated that the 2021 Finance Bill seeks to support the implementation of the 2022 Federal Budget of Economic Growth and Sustainability by proposing key reforms to specific taxation, customs, excise, fiscal and other relevant laws. According to him, the Bill provides for the following:
- Enhanced domestic revenue mobilization efforts to increase tax and non-tax revenues.
- Tax administration and legislative drafting reforms, particularly to support the on-going automation reforms by the Federal Inland Revenue Service (FIRS).
- Accelerated international taxation reforms to enhance the taxation of non-resident individuals and companies that nevertheless derive profits from Nigeria.
- Implement financial sector reforms to support ongoing capital market reforms to Securities Lending Transactions, Real Estate Investment Trusts, Unit Trust Schemes and the re-capitalization of insurance companies.
- Prioritize critical public financial management reforms regarding the role of FIRS in coordinating tax administration as well as the enforcement of key fiscal rules under the 1999 Constitution (as amended), the Finance (Control and Management) Act and other relevant laws.
President Buhari explained that his decision to transmit the 2021 Finance Bill, is in line with sections 58 and 59 of the 1999 Constitution (as amended).