The Joint Revenue Board (JRB) has described the harmonisation of tax laws as a major step towards ending arbitrary levies, overlapping taxes and exploitative revenue collection practices in Nigeria.
Speaking at a press briefing in Abuja on Wednesday, the Executive Secretary of the JRB, Olusegun Adesokan, said the initiative would eliminate revenue collection practices that have increased operating costs for businesses and driven up consumer prices.
He said more than 21 states had passed harmonised tax laws aimed at addressing overlapping taxes, curbing illegal revenue collection and creating a more enabling environment for businesses to grow.
Adesokan said the strong performance of states in internally generated revenue (IGR) aligned with the objectives of the reforms, which include improving tax administration, expanding economic activity and bringing more taxpayers into the formal system rather than imposing heavier burdens on existing taxpayers.
He noted that the figures suggested states could improve revenue mobilisation while reducing tax pressure on eligible individuals and businesses.
“The mission is to ensure that the tax burden is fair and that Nigerians have the space to do their businesses, earn more and improve their livelihoods,” he said.
The reforms are also expected to increase the disposable income of eligible workers by reducing their personal income tax liabilities.
Adesokan explained that eligible deductions include pension contributions, mortgage interest and qualifying rent relief, which are considered when determining taxable income under the relevant provisions.
He said the framework was designed to ensure that low-income earners pay reduced or no personal income tax where they qualify, while higher-income earners contribute in line with the applicable rules.
According to him, the initiative aims to leave workers with more money to spend, save or invest, potentially boosting household consumption and domestic business activity.
The JRB said the harmonised law would also establish a more uniform framework for taxing businesses in the informal sector, addressing inconsistencies in the way states previously administered such taxes.
Adesokan said the board would support state revenue agencies through digitalisation, training and closer institutional collaboration to ensure that the new framework translated into more efficient tax administration.
He disclosed that the new law prohibits the sale of stickers and emblems for revenue collection, the establishment of roadblocks for tax purposes and unauthorised cash collections, warning that offenders would face legal consequences.
The JRB further explained that the effectiveness of tax exemptions for small traders and entrepreneurs would depend not only on the provisions of the law but also on compliance by state and local government revenue officials.
The board is also introducing a unified national Tax Identification system that will enable revenue authorities to access and verify taxpayer records across jurisdictions to strengthen enforcement and improve coordination.
Adesokan disclosed that more than 100 million Tax Identification Numbers had already been generated.
Under the arrangement, state revenue authorities will be able to verify relevant taxpayer information when individuals and businesses conduct transactions in other states, reducing repeated documentation and duplicate tax demands.
The system is also expected to simplify access to government permits, licences and other public services by improving coordination among revenue authorities.
The JRB said that, under the initiative developed in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms, more than 100 different taxes, levies and charges imposed at the subnational level had been streamlined into nine approved categories.
The categories cover income tax, stamp duty, property tax, road tax, development levy, economic development levy, annual levies, user charges and other approved charges.
The board said the reform was intended to replace fragmented state and local government revenue practices with a more predictable tax system, particularly for businesses operating across multiple jurisdictions.
It also disclosed that it was working with the police and state revenue authorities to establish a national task force to remove illegal revenue collectors from highways and transport corridors.
According to the JRB, the planned enforcement operation would extend to local government areas, where businesses and transport operators frequently face multiple demands from different revenue-collecting authorities.