The Joint Revenue Board says the legislation consolidates more than 100 taxes and levies into nine categories, while plans for joint tax audits and a nationwide crackdown on illegal revenue collection are underway.
Twenty-one states across Nigeria have adopted the Model Harmonised Taxes and Levies Law as part of efforts to eliminate multiple taxation, tackle illegal revenue collection and improve tax administration.
The Executive Secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, disclosed this on Wednesday during a press briefing at the board’s headquarters in Abuja.
He explained that the reform consolidates more than 100 existing taxes and levies into nine recognised categories, with the aim of simplifying the tax system and reducing overlapping demands on individuals and businesses.
Adesokan said the number of states that had enacted the legislation increased from 20 to 21 within a short period.
“As of yesterday, 20 states had passed it. But by yesterday evening, I understood that we have 21 states now,” he said.
According to figures presented at the briefing, the states that have adopted the legislation are Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta and Ondo.
The development leaves 15 states yet to enact the model law. However, the board expressed optimism that additional states would complete the legislative process in the coming months.
New Tax Framework Reduces More Than 100 Levies to Nine Categories
Adesokan said the model legislation was developed in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms to address the problem of overlapping taxes imposed by different levels of government.
Under the framework, more than 100 taxes and levies have been grouped into nine categories: income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge and daily ticket.
The JRB executive secretary explained that user charges cover services such as parking, signage, street naming, waste disposal and certain registration fees.
Daily tickets, on the other hand, include charges associated with markets, abattoirs and transportation-related activities.
The harmonisation initiative is intended to make tax obligations clearer, reduce duplication and establish a more consistent approach to revenue collection across participating states.
Joint Revenue Board Targets Illegal Revenue Collectors
Despite the progress recorded in adopting the legislation, Adesokan acknowledged that multiple taxation and the harassment of traders and transport operators remained widespread in some parts of the country.
He said the board was working with the police and state revenue authorities to develop an enforcement mechanism targeting unauthorised revenue collectors, particularly those operating along highways.
“We know the problem exists, and we are working to fix it. We may not be able to clear everything completely today, but as time goes on, we are working on it,” he said.
According to Adesokan, illegal roadside collections increase transportation expenses, with the additional costs eventually affecting the prices of food and other goods.
The board is therefore seeking stronger enforcement measures to prevent unauthorised collections and reduce the financial burden placed on businesses and consumers.
Nationwide Ban on Revenue Stickers and Roadside Cash Collection
A presentation at the briefing indicated that the board’s 158th meeting had approved a nationwide ban on the sale of revenue stickers and emblems.
The meeting also adopted a zero-tolerance position on roadblocks and cash collection associated with revenue enforcement.
Adesokan said implementation of the measures would begin soon, while acknowledging that eliminating practices established over several decades would require sustained efforts.
The measures are intended to curb questionable collection practices, improve transparency and prevent individuals or groups from imposing unauthorised charges on motorists, traders and transporters.
He added that the National Economic Council had included harmonisation of taxes collected by state and local authorities among the priorities of its 90-day economic action plan.
States Yet to Adopt Law Must Follow Legislative Process
Addressing the 15 states that have not yet enacted the model legislation, Adesokan explained that adoption requires the appropriate legislative procedures and consultations with relevant stakeholders.
He said the process could not simply be imposed through executive directives, indicating that states would need to complete the necessary steps before the law could take effect within their jurisdictions.
The board expressed confidence that further progress would be made as state authorities continue working towards harmonising their tax systems.
Wider adoption is expected to support more consistent revenue administration and reduce the problems associated with overlapping taxes across different jurisdictions.
Tax Revenue Rises 27% in 23 States
Adesokan also disclosed that tax revenue collected by 23 states increased by 27 per cent in the first half of 2026 compared with the corresponding period in 2025.
Data from the same group of states indicated that approximately 92 per cent of income taxpayers were paying lower income tax or no income tax under the revised system.
He said informal-sector traders who qualify for income tax exemptions should not be subjected to income tax demands.
However, he clarified that qualifying for an income tax exemption does not automatically exempt an individual or business from every other lawful levy or service charge.
The figures suggest that the tax reforms are being accompanied by changes in income tax obligations, although the board did not attribute the reported revenue growth solely to the harmonisation law.
Joint Tax Audits Planned to Reduce Business Disruptions
The JRB is also planning to introduce joint tax audits involving the Nigerian Revenue Service and state revenue authorities.
The proposed arrangement is intended to reduce repeated inspections and prevent businesses from facing unnecessary disruptions caused by separate tax audits conducted by different authorities.
Under the plan, greater coordination between revenue agencies would help streamline compliance checks and make the administration of tax obligations more efficient.
The board is also linking existing state taxpayer identification records to the national Tax ID system.
The integration is expected to improve taxpayer verification and help prevent individuals and businesses from receiving duplicate income tax demands across different states.
These measures form part of broader efforts to simplify tax administration and improve cooperation between federal and subnational revenue authorities.
Taxpayers Warned Against Suspicious Revenue Demands
Responding to complaints about questionable revenue notices, Adesokan advised taxpayers to verify demands with the appropriate revenue authorities before making payments.
He also warned against paying revenue demands into private accounts or accounts belonging to consultants rather than authorised government channels.
The advice is intended to protect taxpayers from unauthorised collections and improve accountability in the administration of public revenue.
Adesokan clarified that the Joint Revenue Board coordinates tax policy and administration but does not directly collect taxes. Actual collection remains the responsibility of the relevant federal, state and local revenue authorities.
The distinction is important for taxpayers seeking to confirm whether a demand is legitimate and whether the person or agency requesting payment has the appropriate authority.
Economic Impact Will Determine Success of Tax Reforms
The harmonisation initiative represents an effort to address longstanding concerns about multiple taxation, illegal collections and the administrative burden placed on Nigerian businesses.
By consolidating taxes into recognised categories, coordinating revenue agencies and strengthening enforcement against unauthorised collectors, the authorities aim to create a more predictable tax environment.
However, the success of the reforms will depend on how consistently the new rules are implemented across participating states and whether businesses experience a genuine reduction in overlapping charges and harassment.
Adesokan maintained that the ultimate measure of the initiative would be its effect on economic activity, rather than simply the number of taxes and levies consolidated.
With 21 states having adopted the model law and 15 yet to complete the process, further coordination between state governments, revenue authorities and enforcement agencies will be necessary to achieve broader tax harmonisation across Nigeria.
