Joint Revenue Board: 21 Nigerian States Adopt Harmonized Tax Law

• Twenty-one Nigerian states have adopted the Model Harmonised Taxes and Levies Law to streamline tax administration and combat multiple taxation.
• The new law consolidates over 100 existing taxes and levies into nine distinct categories.
• The Joint Revenue Board has banned the sale of revenue stickers and emblems, introducing zero tolerance for roadblocks and cash collections.
• Enforcement efforts against illegal roadside collectors are being strengthened through collaboration with police and state revenue authorities.
• Tax revenue in 23 states increased by 27% in H1 2026, with 92% of income taxpayers now paying lower or zero income tax.

The Model Harmonised Taxes and Levies Law Nigeria was developed through a collaborative effort with the Presidential Committee on Fiscal Policy and Tax Reforms, specifically designed to address the problem of overlapping tax impositions by various levels of government.

The Joint Revenue Board (JRB) has announced that 21 Nigerian states have officially adopted the Model Harmonised Taxes and Levies Law, a significant step aimed at tackling the pervasive issue of multiple taxation, curbing illicit revenue collection, and streamlining the overall tax administration landscape across the nation. Olusegun Adesokan, the Executive Secretary of the JRB, revealed this development during a press briefing held in Abuja, noting that the reform effort has successfully consolidated over 100 existing taxes and levies into a more manageable structure of nine distinct categories. Initially, 20 states had passed the legislation, with an additional state joining by the evening of the announcement.

The states that have enacted this pivotal legislation include Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta, and Ondo. This means that 15 states are yet to implement the model law, although the JRB has expressed optimism that more states will complete the necessary legislative processes in the coming months. The Model Harmonised Taxes and Levies Law Nigeria was developed through a collaborative effort with the Presidential Committee on Fiscal Policy and Tax Reforms, specifically designed to address the problem of overlapping tax impositions by various levels of government.

The nine consolidated categories of Nigerian states tax categories are income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge, and daily ticket. Adesokan further clarified that user charges encompass fees for services such as parking, signage, street naming, waste disposal, and specific registration fees. Meanwhile, daily tickets cover market levies, abattoir fees, and various transport-related charges, aiming to bring clarity and order to previously disparate revenue streams.

Despite these significant steps towards Nigerian subnational tax harmonization, the JRB chief acknowledged that the challenges of multiple taxation and the harassment of traders and transporters remain widespread. He emphasized that while the problem persists, the board is actively working towards comprehensive solutions. To combat unauthorized collectors, particularly those operating on highways, the JRB is collaborating closely with the police and state revenue authorities to establish a robust enforcement structure. This initiative is crucial given that illegal roadside collections contribute directly to higher transportation costs, which in turn inflate food prices and the overall cost of goods for consumers.

In a move to further streamline collection and enhance transparency, the JRB's 158th meeting approved a nationwide ban on the sale of revenue stickers and emblems. Concurrently, a policy of zero tolerance for roadblocks and direct cash collection has been introduced. Adesokan indicated that enforcement of these new measures would commence shortly, recognizing that practices entrenched over several decades will require sustained intervention to eradicate fully. The National Economic Council has also underscored the importance of subnational tax harmonisation by including it as a priority within its 90-day economic action plan, signaling high-level commitment to Nigeria multiple taxation reform.

The ongoing efforts to reform Nigeria's tax system are already showing some positive indicators. Data from 23 states revealed a 27 percent increase in tax revenue during the first half of 2026 compared to the corresponding period in 2025. Furthermore, information from these same states suggests that approximately 92 percent of income taxpayers are now paying either lower or no income tax under the revised system, indicating a potentially lighter burden for many citizens.

Adesokan also addressed concerns regarding the informal sector, stating that traders covered by income tax exemptions should not be subjected to income tax demands. However, he clarified that other lawful levies and charges could still apply to these businesses. Looking ahead, the JRB has disclosed plans to introduce joint tax audits, involving both the Nigerian Revenue Service and state revenue authorities. This initiative aims to reduce the frequency of repeated inspections and minimize disruptions to businesses, fostering a more predictable and efficient tax environment.

Lawyers and compliance officers advising businesses operating across Nigerian states, particularly those in the 21 adopting states, must review the new Model Harmonised Taxes and Levies Law to understand consolidated tax categories and ensure compliance. They should also advise clients on the ban of revenue stickers/emblems and cash collections, and the ongoing enforcement against illegal roadside tax collectors, which impacts transportation and supply chain costs.

Source: Original reporting via Joint Revenue Board announcement