New Tax Laws: Nine States Lead Domestication Drive
Nine Nigerian states have taken the lead in domesticating the Federal Government’s newly introduced tax laws, marking a major step in the country’s fiscal reform drive aimed at curbing multiple taxation and modernising revenue administration.
According to a report by The Nation, the states — Bayelsa, Anambra, Ekiti, Gombe, Kogi, Nasarawa, Plateau, Kwara and Zamfara — have enacted their own versions of the harmonised tax legislation, aligning their revenue systems with the national framework designed by the Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC).
The domestication process is part of a broader effort to eliminate illegal tax collections, streamline levies across different levels of government and create a more business-friendly environment for investors and taxpayers.
In Kogi State, Governor Ahmed Ododo has signed into law key pieces of legislation, including the Kogi State Internal Revenue Service (Establishment) Law, 2025 and the Kogi State Taxes and Levies (Approved List for Collection) Law, 2025. The governor said the reforms would boost internally generated revenue, promote transparency and simplify tax procedures, while also providing relief for low-income earners.
Similarly, officials in Bayelsa State described the new laws as a milestone in revenue administration. The state’s Joint Revenue Board disclosed that the reforms would reduce the number of taxable heads from nearly 60 to nine, outlaw the use of roadblocks for tax collection and expand the use of digital platforms to curb leakages and corruption.
In Anambra, the state’s tax authority has pledged to enforce the new regime through transparent processes, including the elimination of cash-based tax payments into government coffers. The authority also announced plans to hold town hall meetings to engage stakeholders and educate residents on the new tax structure.
Meanwhile, other states are moving to follow suit. Reports indicate that Delta State is finalising its domestication process, with the executive preparing to forward relevant bills to the House of Assembly before the end of the month.
The PFPTRC noted that the harmonised tax laws are designed to bring uniformity to Nigeria’s tax system, reduce the burden on businesses and individuals, and strengthen accountability across all tiers of government.
Economic analysts say the early adoption by the nine states could serve as a catalyst for wider implementation nationwide, potentially improving internally generated revenue and boosting investor confidence in Nigeria’s economic environment.