The Kano State Internal Revenue Service (KIRS) is implementing plans to increase its monthly revenue to N15 billion by 2026. This projection is based on a new tax framework that prioritizes fairness and efficiency, according to Alhaji Muhammed Abba Aliyu, Executive Director of Compliance and Enforcement at KIRS. The revised system aims to shield lower-income earners from undue financial pressure by only taxing individuals who earn above N800,000 annually.

The new tax structure focuses on income tax from employment or business activities, service charges for accessing public amenities, and penalties for legal infractions. This approach aims to streamline revenue collection and reinforce the social contract between citizens and the state. To achieve this goal, the KIRS is promoting the use of digital tax systems, which offer secure and traceable payment options.

The adoption of digital tax systems is expected to have a transformative impact on revenue collection in Kano State. Alhassan Usman, a representative of the Partnership for Agile Governance and Climate Engagement (PACE), emphasized the importance of digital payments, urging residents to move away from cash-based interactions with revenue officers. The campaign seeks to educate citizens on the long-term benefits of tax compliance, including the ability to monitor their financial health and position themselves for growth opportunities.

Kano State has already made significant progress in increasing its internally generated revenue (IGR). In 2024, the state’s IGR doubled to N74.77 billion, up from N37.38 billion in 2023, according to data released by the National Bureau of Statistics (NBS). This milestone was achieved through the blocking of leakages and the overhaul of the KIRS upon the assumption of office by Governor Abba Kabir Yusuf in 2023.

The governor’s administration has been credited with employing skilled personnel to handle the state’s revenue generation, resulting in Kano emerging as one of Nigeria’s fastest-growing revenue states. Governor Yusuf has expressed gratitude for the cooperation received from the populace and has promised to do more to improve the state’s revenue generation. With the implementation of the new tax framework and the promotion of digital tax systems, Kano State is poised to achieve its revenue goals and continue to grow its economy.