Nigeria Tax Reform Gains Momentum Across Northern States

Nigeria’s northern states are making strides in implementing new tax laws, with Jigawa, Plateau, Kogi, Nasarawa, and Kwara taking concrete steps to domesticate reforms aimed at enhancing revenue generation. The Joint Revenue Board (JRB) attributes this momentum to recently enacted federal laws designed to boost Internally Generated Revenue (IGR), promote financial autonomy, and create a more transparent and business-friendly tax environment.

In a significant development, Jigawa State has joined the reform drive with the passage of the Harmonised Taxes and Levies Bill by its State House of Assembly. The JRB has congratulated the state on this milestone, which is expected to modernise its revenue administration. The bill, awaiting the governor’s assent, seeks to streamline tax collection processes, eliminate multiple taxation, and outlaw the use of roadblocks for tax and levy collection. It also aims to deploy technology to improve transparency, block revenue leakages, and clearly define taxpayers’ obligations.

The JRB notes that this harmonised framework is expected to enhance taxpayer compliance, boost investor confidence, and support Jigawa’s economic growth. The board commends the cooperation between the state government, the legislature, and the Jigawa State Internal Revenue Service, highlighting that the initiative aligns with the national tax reform programme of President Bola Ahmed Tinubu. This move reflects the state’s commitment to transparency and good governance, which is essential for attracting investments and promoting economic development.

The implementation of these reforms is crucial for Nigeria’s economic growth, as it will enable the government to generate more revenue and allocate resources effectively. The JRB’s efforts to support states in domesticating these reforms demonstrate the federal government’s commitment to creating a more conducive business environment. As more states follow suit, it is expected that the country will witness significant improvements in revenue generation, transparency, and economic development. With the JRB’s guidance, Nigeria is poised to make significant strides in strengthening its tax system and promoting economic growth.

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