States must sync tax laws with new national framework — Revenue Board

State governments have been urged to urgently harmonise their tax laws with Nigeria’s new national tax framework, as subnational cooperation has been identified as decisive to the success of ongoing fiscal reforms.

The call was made by the Executive Secretary of the Joint Revenue Board of Nigeria, Olusegun Adesokan, who stressed that meaningful reform can only be achieved when states fully align with federal tax policies.

“While national laws provide direction, true transformation requires alignment at state and local levels, where a significant portion of tax administration occurs,” Adesokan said, noting that the benefits of the new tax regime would only be realised if states domesticate and enforce its key principles.

In a statement issued on Wednesday, he said Nigeria is currently implementing one of the most far-reaching fiscal reform programmes in its history, driven by four landmark tax laws signed into force under the administration of Bola Ahmed Tinubu.

The laws are the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Revenue Board of Nigeria (Establishment) Act.

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According to Adesokan, the legislation establishes a unified legal and institutional framework aimed at modernising Nigeria’s tax system and aligning it with global best practices.

He explained that the reforms go beyond revenue generation, describing taxation as a central pillar of national development.

“A sound tax system is not simply a revenue tool; it is a national development instrument,” he said, adding that the reforms are structured to simplify tax rules, eliminate multiple taxation, strengthen administration, and promote equity and transparency.

Adesokan said the reform agenda prioritises relief for poor and vulnerable Nigerians as well as small businesses, while also reducing revenue leakages, improving compliance through technology, and strengthening accountability in tax collection.

He noted that these measures are expected to create a more business-friendly environment and enhance the government’s capacity to fund infrastructure, social services, and other programmes that directly affect citizens.

While national legislation provides the policy direction, Adesokan emphasised that implementation rests largely with states and local governments, where most tax administration activities take place.

To support this process, he said the Joint Revenue Board has developed a Model States Taxes and Levies Harmonisation Law to guide states in aligning their laws with the new national framework.

He disclosed that 12 states have already enacted versions of the harmonisation law, while several others are currently engaged in stakeholder consultations, policy reviews, and legislative processes.

According to him, the harmonisation initiative is designed to address long-standing concerns over multiple taxation, overlapping levies, and informal revenue collection practices that have weighed heavily on businesses, particularly small and medium enterprises.

One major feature of the model law, Adesokan said, is the consolidation of nearly 60 different taxes, levies, fees, and charges into nine clearly defined collection heads.

“This eliminates confusion as well as duplication and makes compliance easier for individuals and enterprises alike,” he said.

He added that the framework also introduces measures to eliminate unauthorised roadside collections, curb the activities of non-state revenue collectors, discourage cash-based payments in favour of electronic channels, standardise assessment and collection procedures, and expand the use of digital technology for tax payments.

According to Adesokan, these steps mark a shift toward a more orderly, transparent, and predictable revenue system capable of supporting legitimate economic activity.

He argued that a simpler tax structure would naturally boost compliance, strengthen investor confidence, and lower the cost of doing business across states.

“When tax systems become simpler, fairer and more predictable, compliance improves naturally. Businesses can plan with confidence, investors feel more secure, and governments collect revenue more efficiently,” he said.

Adesokan added that public confidence in the tax system is already growing, as citizens begin to see efforts to replace fragmented and inconsistent practices with a more coherent framework.

He stressed that trust is fundamental to any effective tax regime, noting that taxpayers must be confident that rules are clear, collections are lawful, and revenues are responsibly utilised.

He said ongoing collaboration among federal, state, and local governments reflects a shared understanding that fiscal stability and national development can only be achieved through coordinated action.

According to him, the ultimate goal of the reforms is not merely tax collection, but the establishment of a fair, transparent, and growth-oriented system that supports economic opportunity and national progress.

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