In a significant move to strengthen their financial autonomy, five states in Northern Nigeria have begun domesticating the new national tax reforms. This legislative momentum is building across the region as states align with President Bola Ahmed Tinubu's fiscal reform agenda.
Northern States Lead the Charge on Fiscal Modernisation
Jigawa State has formally joined the reform drive following the passage of the Harmonised Taxes and Levies Bill by its State House of Assembly. The bill, awaiting the governor's assent, is designed to streamline tax processes and eliminate the notorious issue of multiple taxation. It explicitly outlaws the use of roadblocks for tax collection and mandates the deployment of technology to enhance transparency and plug revenue leakages.
The Joint Revenue Board (JRB) commended the state, calling it a milestone in modernising revenue administration. The new framework is expected to clarify taxpayer obligations, improve compliance, and boost investor confidence in the state.
Plateau, Nasarawa, and Kogi Enact Similar Laws
Other states are moving swiftly with comparable legislation. On December 31, 2025, Plateau State Governor Caleb Mutfwang signed the Plateau State Harmonised Taxes and Levies (Approved List for Collection) Law into effect. State officials hailed it as a breakthrough that provides a clearer, more coordinated framework for collection, aiming to eliminate duplication and fund critical infrastructure.
Similarly, Nasarawa State Governor Abdullahi Sule has enacted the Nasarawa State Revenue Administration Law 2025 and the Harmonised Taxes and Levies Law 2025. These laws establish a unified system for managing all revenues, clearly define approved levies, and aim to tackle fragmented practices and inconsistent enforcement that have long plagued the system.
Kogi State entered the new year with its own reforms. On January 1, 2026, Governor Ahmed Usman Ododo assented to the Kogi State Internal Revenue Service (Establishment) Law 2025 and the Kogi State Taxes and Levies (Approved List for Collection) Law 2025. These statutes provide a stronger legal foundation for a more professional revenue service, aligning it with national standards.
A Unified Push for Transparency and Economic Growth
The collective action by these states underscores a regional commitment to overhauling sub-national revenue administration. The reforms share common objectives:
- Boosting Internally Generated Revenue (IGR) to reduce dependency on federal allocations.
- Eliminating multiple and arbitrary taxation that burdens businesses, especially SMEs.
- Deploying technology to make processes transparent and predictable.
- Restoring public trust in revenue institutions and improving the ease of doing business.
While specific legislative details are still emerging for Kwara State, it has been identified as part of this concerted push in the North Central region. The JRB has highlighted that these state-level efforts are in direct alignment with the Tinubu administration's national tax reform programme, emphasising a shared vision for transparency and good governance across Nigeria.
