Twenty-one states enact a model tax law to consolidate over 100 levies into nine clear categories and curb illegal revenue collection.
Twenty-one Nigerian states have officially enacted the Model Harmonised Taxes and Levies Law to eliminate multiple taxation and streamline tax administration across the country.
Olusegun Adesokan, the Executive Secretary of the Joint Revenue Board, disclosed this during a press briefing in Abuja, explaining that the comprehensive reform consolidates more than 100 existing taxes into nine distinct categories, according to information published by punchng.
The legislative milestone aims to reduce illegal revenue collection, lower transportation costs for goods, and ease the financial burden on citizens, addressing challenges that have persisted across various subnational governments for decades.
Model Harmonised Taxes and Levies Law Categories
The newly adopted legislation groups all permissible state and local levies into nine clear categories, namely income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge, and daily ticket.
User charges specifically cover essential services like parking, signage, street naming, and waste disposal, while daily tickets encompass market levies, abattoir fees, and transport-related charges to protect traders from arbitrary extortion.
States Implementing the Subnational Tax Reform
A presentation displayed during the briefing confirmed that the 21 states that have passed the bill include Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta, and Ondo.
Meanwhile, 15 states have yet to enact the model legislation, though the Joint Revenue Board expressed strong confidence that more regional assemblies will complete the legislative process in the coming months.
Ban on Roadblocks and Cash Collection
The 158th meeting of the Joint Revenue Board approved a nationwide ban on the sale of revenue stickers and emblems, introducing absolute zero tolerance for roadblocks and cash collection by unauthorized agents on highways.
Adesokan noted that the board is collaborating closely with the Nigeria Police Force to establish strict enforcement structures against illegal roadside collectors whose activities artificially inflate food prices and general transportation costs.
Impact on Income Tax and Revenue Growth
Data from 23 states revealed that tax revenue increased by 27 per cent in the first half of 2026 compared to the same period in 2025, while approximately 92 per cent of income taxpayers paid lower or zero income tax under the revised system.
To protect vulnerable groups, Adesokan maintained that informal-sector traders covered by the income tax exemption must not face income tax demands, and the board plans to introduce joint tax audits alongside the Nigerian Revenue Service.
Frequently Asked Questions
How many states have adopted the new tax law in Nigeria?
As of the recent briefing by the Joint Revenue Board, 21 states have enacted the Model Harmonised Taxes and Levies Law to curb multiple taxation, while 15 states are still working through their legislative procedures.
What are the nine consolidated tax categories under the new reform?
The new law consolidates over 100 levies into nine categories, which include income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge, and daily ticket.
Are roadblocks and cash collections banned by revenue authorities?
Yes, the Joint Revenue Board has approved a nationwide ban on revenue stickers and emblems, enforcing a strict zero-tolerance policy against roadblocks and cash collections on Nigerian highways.
How does the reform affect informal-sector traders?
Informal-sector traders who qualify for the income tax exemption are protected from paying income tax demands, though they remain subject to other lawful levies and charges managed by appropriate authorities.
