The harmonised tax law in Nigeria has gained support from 21 states. The reform aims to reduce multiple taxation and stop illegal revenue collection.
The Joint Revenue Board (JRB) announced the development in Abuja on Wednesday, October 28, 2026. The initiative seeks to simplify tax payments and improve the business environment.
The 21 states are Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta and Ondo.
The JRB worked with the Presidential Committee on Fiscal Policy and Tax Reforms to develop the model law. The legislation seeks to combine more than 100 state and local government tax and levy categories into nine approved categories.
These include income tax, stamp duties, property tax, road tax and haulage levy. Other categories cover economic development levies, harmonised levies, user charges and daily tickets.
How Harmonised Tax Law in Nigeria Could Help Businesses
The reform could ease pressure on small businesses, traders and transport operators. Many face demands for different payments while moving goods or working across locations.
The new framework aims to make approved taxes clearer. It also targets unauthorised collectors who demand money on roads or sell unofficial revenue stickers.
Small business owners could find it easier to plan their expenses. Traders may also face fewer illegal payment demands when transporting goods.
Consumers could benefit if businesses spend less on extra charges. Some businesses may pass these savings on through more stable prices.
However, the law does not remove all taxes. Individuals and businesses must still pay legitimate taxes under applicable laws.
The JRB has also called for stronger enforcement against illegal collections. Passing the law alone will not end these practices.
Implementation Remains a Key Challenge
The adoption of the law marks progress, but implementation will determine its impact. State governments and local authorities must ensure that revenue agents follow the approved rules.
According to reports, 15 states have yet to enact the model legislation. The Federal Capital Territory has also been reported as yet to adopt the framework.
Authorities must educate taxpayers and improve collection procedures. They must also take action against illegal collectors.
For Nigerians, the real test is simple. The reform must reduce unauthorised levies, clarify tax obligations and lower the cost of doing business.
Until implementation improves, many traders and residents may not feel its full benefits.
