Twenty-one states have enacted the Model Harmonised Taxes and Levies Law to curb multiple taxation, end illegal revenue collection and simplify tax administration across Nigeria.
The Executive Secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, disclosed this earlier today, October 28, at a press briefing at the board’s headquarters in Abuja. He said 15 other states were yet to adopt the law as of Tuesday evening.
The legislation, developed in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms, consolidates more than 100 existing taxes and levies into nine categories to address overlapping charges imposed by the federal, state and local governments.
The nine categories are income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge and daily ticket.
The 21 states that have enacted the law are Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta and Ondo.
Adesokan acknowledged that multiple taxation and the harassment of traders and transporters remained widespread despite the reform.
“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.
He said the board was working with the police and state revenue authorities to establish an enforcement structure against unauthorised collectors, particularly those operating along highways.
According to him, illegal roadside collections increase transportation costs, contributing to higher food prices and the rising cost of goods.
A presentation at the briefing showed that the board’s 158th meeting had approved a nationwide ban on the sale of revenue stickers and emblems, alongside a zero-tolerance policy for roadblocks and cash collection.
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Adesokan said enforcement would begin soon but warned that dismantling practices entrenched over several decades would require sustained intervention.
He added that the National Economic Council had included tax harmonisation across the three tiers of government in its 90-day economic action plan.
On the states yet to adopt the law, the JRB chief said the process required legislative procedures and consultations with stakeholders rather than executive directives.
He also disclosed that tax revenue from 23 states increased by 27 per cent in the first half of 2026 compared with the corresponding period in 2025.
Data from the same states showed that about 92 per cent of income taxpayers were paying lower or zero income tax under the revised system, he said.
Adesokan maintained that informal sector traders covered by the income tax exemption should not face income tax demands, although other lawful levies and charges could still apply.
The board also plans to introduce joint tax audits involving the Nigerian Revenue Service and state revenue authorities to reduce repeated inspections and disruptions to businesses.
It is also linking existing state taxpayer identification records to the national Tax ID system to improve verification and prevent duplicate income tax demands across states.
Adesokan advised taxpayers who received questionable revenue notices to verify them with the relevant authorities and avoid paying into private or consultants’ accounts.
He clarified that the JRB coordinates tax policy and administration but does not collect revenue directly, as that responsibility rests with federal and subnational tax authorities.
He said the reform’s success would ultimately depend on its impact on economic activity rather than the number of taxes consolidated.
