More states move to simplify tax system, eliminate multiple levies and protect taxpayers under new reform framework.
At least 12 states across Nigeria have enacted the new tax harmonisation law, a key component of the sweeping fiscal reform programme introduced by the administration of President Bola Tinubu.
The development was disclosed in Abuja by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms and Minister of State for Finance designate.
Oyedele revealed that beyond the states that have already passed the law, 13 additional states have submitted the proposed legislation to their respective state assemblies for consideration, while several others are still at different stages of implementing the reform.
Reforming Nigeria’s Tax Structure
According to Oyedele, the tax harmonisation initiative forms a central pillar of the federal government’s broader efforts to overhaul Nigeria’s fiscal system and improve the efficiency of tax administration.
He explained that the reforms are aimed at modernising the country’s fiscal framework, creating a more predictable business environment and supporting economic growth.
The initiative is also expected to provide greater protection for vulnerable groups while restructuring the nation’s revenue system to make it more transparent and accountable.
Eliminating Multiple Taxes
One of the core objectives of the harmonisation law is to eliminate so-called nuisance taxes and reduce the burden created by overlapping levies imposed by different government agencies.
The reforms are designed to simplify the tax landscape and curb practices that often lead to harassment of businesses and citizens by revenue collectors.
Oyedele noted that the new framework will help establish clearer rules for taxation, ensuring that taxpayers are treated fairly while government agencies operate within defined legal boundaries.
Protecting Taxpayers’ Rights
Beyond simplifying the system, the law is also expected to strengthen taxpayer protections and address cases of unfair or arbitrary tax treatment.
According to the reform committee chairman, a more transparent system will also improve trust between citizens, businesses and government institutions.
“Transparency, fiscal discipline, responsibility and accountability remain critical pillars of an effective tax system,” Oyedele said.
Part of Wider Economic Reforms
The tax harmonisation drive is part of a broader economic reform agenda being pursued by the administration of President Bola Tinubu.
The federal government has been implementing a series of policy changes aimed at improving public finances, strengthening revenue generation and positioning the Nigerian economy for long-term growth.
With more states considering the legislation, officials say the reforms could significantly reshape Nigeria’s tax system by reducing complexity, boosting compliance and encouraging investment across the country.
