New tax reform: 21 states pass harmonised tax laws as revenue boosts by 27% - Adesokan

Olusegun Adesokan, Executive Secretary of the Joint Revenue Board, announced that 21 states have adopted a model harmonised tax law to eliminate duplicative taxation and enhance revenue management nationwide. During a briefing in Abuja, Adesokan explained that the law would streamline tax collection, provide a more stable tax environment for businesses, and simplify tax administration by consolidating over 100 disparate taxes, levies, and charges into nine categories: income tax, stamp duty, property tax, road tax, development levy, economic development levy, annual levies, user charges, and other authorized charges.

The harmonisation initiative, jointly developed with the Presidential Committee on Fiscal Policy and Tax Reforms, aims to eradicate multiple taxation, inconsistent levies, and confusing revenue collection practices which often impose undue burdens on businesses operating across state lines. Adesokan emphasized that the law prohibits the issuance of tax stickers, the establishment of tax-collection roadblocks, and unauthorized cash collection, with violators facing legal repercussions.

In the first half of 2026, the 20 states that participated in the reforms observed a 27% revenue surge compared to the same period in 2025, despite more citizens benefiting from lower or zero personal income tax under the new framework. The reforms are designed to increase disposable income, stimulate economic activity, and encourage more Nigerians to engage in the formal tax system.

An individual earning N20 million annually could see their monthly take-home pay rise by approximately N80,000 annually under the new system, thanks to provisions such as pension contributions, mortgage interest deductions, and rent relief. Adesokan also introduced a unified national tax identification system that will allow state revenue authorities to verify taxpayers' records across jurisdictions, reducing the need for repeated documentation and multiple tax payments.

He noted that illegal levies and roadside collections inflate transportation costs, ultimately raising prices for consumers. The task force will enforce the harmonised laws across the country, including at the local government level, and ensure compliance. Additionally, the reforms introduce a more uniform tax framework for informal businesses, exempting those with annual turnovers of up to N12 million from income tax, and prohibiting unauthorized cash collection at tax collection points.

Adesokan affirmed that the JRB would support state revenue authorities through digitalisation, training, and improved collaboration to ensure the reforms' successful implementation and create a more tax-friendly environment for businesses.