Nine states have so far domesticated Nigeria’s new tax harmonisation laws designed to end multiple taxation and uncoordinated levies. The states are Bayelsa, Anambra, Ekiti, Gombe, Kogi, Nasarawa, Plateau, Kwara and Zamfara, while 27 others are still at various stages of adoption.
The reforms build on a model Tax Harmonisation Law developed by the Presidential Fiscal Policy and Tax Reforms Committee for states and local governments. The aim is to tackle illegal collections, remove non-state actors from revenue drives and create a clearer, more predictable tax environment for businesses and citizens.
Committee chairman Taiwo Oyedele said it is vital for states to pass their own harmonisation laws to address multiple taxation at sub-national level. The Joint Revenue Board described the early moves by the nine states as a key step towards eliminating illegal tax collection and improving the fiscal climate.
In Kogi State, Governor Ahmed Ododo signed two key tax laws on January 1, 2025: the Kogi State Internal Revenue Service (Establishment) Law and the Kogi State Taxes and Levies (Approved List for Collection) Law. He said the measures will boost revenue, improve transparency and support economic growth while exempting individuals who earn below N800,000 a year from personal income tax.
Ododo explained that the new framework is meant to reset and harmonise the tax system rather than raise tax burdens. He added that digital tools will drive tax administration to cut human interference, reduce leakages and enhance accountability.
Bayelsa’s Joint Revenue Board described its own law as a major milestone in modernising revenue administration in the South-South. The law reduces nearly 60 different collectible items to just nine heads, bans the use of roadblocks for collecting taxes and shifts away from cash collection toward technology-based payments.
The harmonised system in Bayelsa is expected to improve compliance, reassure investors and support economic development. The board praised the collaboration between the state government, legislature and revenue service and said the reform aligns with the national tax agenda of the Tinubu administration.
In Anambra, the chairman of the Internal Revenue Service, Greg Ezeilo, said domestication of the new law has ended the practice of paying cash directly into government coffers. He promised firm and transparent enforcement and warned that there would be no mercy for tax evaders, while announcing plans for town hall meetings with taxpayers.
Delta State’s Internal Revenue Service chairman, Solomon Igharakpata, said Delta is in the process of domesticating the new tax laws and expects to submit the draft legislation to the House of Assembly before the end of the month. Officials across other states are also working on passing and gazetting their versions, signalling a wider shift toward a more transparent and investor-friendly tax regime nationwide.
At a tax reform summit in Lagos, Oyedele stressed that transforming sub-national tax systems is central to Nigeria’s economic survival. He said the new laws are not meant to introduce new or higher taxes but to promote harmonisation, efficiency and better taxpayer value through data and collaboration at state and national levels.
According to him, harmonisation does not mean centralisation, but clarity and efficiency. He argued that with a clearer system, people end up paying less overall while government improves collection and reduces waste.
The Presidential Fiscal Policy and Tax Reforms Committee is also working closely with the Office of the Tax Ombud to protect taxpayers’ rights. After a recent meeting in Abuja, both bodies agreed to deepen cooperation to build trust through transparent mediation and stronger accountability in tax administration.
Chief Press Secretary to the Tax Ombud, Chukwudi Achife, said the Ombud’s office will serve as a mediation platform for small businesses and multinationals on tax, levies, charges, customs duties and related disputes. Taxpayers are expected to save on arbitration costs while still getting timely and fair settlement of complaints.
Oyedele said the Tax Ombud is an independent and impartial institution created under the new tax laws to protect taxpayer rights and resolve complaints quickly and fairly. He noted that closer collaboration will help ensure the reforms deliver a fairer and more responsive tax system for Nigerians.
Tax Ombud and CEO John Nwabueze was appointed under the Joint Revenue Board (Establishment) Act 2025 to provide an independent channel for resolving disputes with revenue authorities. His office focuses on issues such as unfair treatment, delays and abuse, with the goal of improving transparency and public confidence in the tax system.
The four new tax reform laws overhaul Nigeria’s tax landscape to support growth, raise revenue, improve the business climate and strengthen tax administration across all tiers of government.
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