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States cut tax collection items from over 50 to nine under reform

Nigeria’s tax reform has cut the number of revenue collection items handled by states and local government areas from more than 50 to nine, the Joint Revenue Board (JRB) has said.

The reduction followed the adoption of a model harmonised taxes and levies law by 18 state Houses of Assembly, with the law designed to stop overlapping taxes and multiple charges imposed on taxpayers.

JRB Executive Secretary, Olusegun Adesokan, disclosed this at the board’s 160th meeting in Kaduna State on Friday, where members reviewed one year of the tax reform and examined problems affecting its implementation.

The meeting, themed “One Year of Reform: Assessing Progress and Addressing Challenges,” also heard that cash collection and roadblocks used for revenue collection had been abolished under the new law.

From more than 50 items to nine

The reduction in collection items is one of the clearest changes reported by the JRB since the reform began.

Adesokan said the harmonised law had reduced more than 50 collection items previously administered by states and local government areas to nine sub-heads.

He said 18 state Houses of Assembly had already domesticated the law, giving the reform a legal basis in those states.

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The law was designed to deal with overlapping and multiple taxation, which had created several separate collection points for taxpayers.

Adesokan also said the reform had eliminated multiple nuisance taxes and provided relief for low-income earners and micro-scale businesses.

“Addressing the misconception that the tax reform has increased taxes, the reform has rather reduced the tax burden on low-income earners, eliminated multiple nuisance taxes while providing reliefs for low-income earners and micro-scale businesses,” he said.

The JRB said the measures had recorded significant progress in harmonising taxes and levies among subnational governments.

The board is Nigeria’s apex body for revenue administration. Its Kaduna meeting was convened to assess progress under the new revenue system, identify gaps and deal with emerging challenges.

The reported abolition of cash collection and revenue roadblocks also changes how tax collection is carried out at state and local government levels.

JRB reviews revenue gains

Kaduna State Governor, Uba Sani, opened the meeting and said the reform had created more opportunities for domestic resource mobilisation and improved the country’s ability to finance development.

Sani told the JRB to identify bottlenecks affecting revenue collection, institutional weaknesses that create friction between revenue authorities and taxpayers, and opportunities to use technology to improve tax administration.

“The objective of the reform should not be simply to collect revenue; it should be to build a tax system in which compliance becomes easier, enforcement becomes more intelligent and voluntary compliance becomes a norm,” he said.

Sani also expressed satisfaction with the reform, saying it had eliminated duplication of taxation and improved revenue generation.

He cited national tax revenue figures of approximately ₦10.1 trillion in 2023, ₦21.6 trillion in 2024 and about ₦36.8 trillion in 2025.

He also said national tax revenue had so far risen to ₦21.6 trillion since President Bola Tinubu introduced the tax reform in 2026.

The figures were presented by the governor as part of his assessment of revenue performance under the reform.

JRB Chairman, Zacch Adedeji, was represented at the meeting by Muhammad Abubakar, Executive Director, Finance and Corporate Services, Nigeria Revenue Service.

Abubakar said revenue authorities needed to assess the progress made, deal with identified gaps and confront new challenges facing the system.

He said the success of the reform should ultimately be measured through improved revenue mobilisation, better compliance, an improved taxpayer experience and greater contributions to national development.

The meeting also gave the JRB an opportunity to review how the harmonised tax system is being applied across states and to consider areas requiring further work.

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