12 Nigerian States Enact Tax Harmonisation Law as Reforms Gain Momentum — Oyedele

 

No fewer than 12 states in Nigeria have enacted the Tax Harmonisation Law, a critical component of the Federal Government's ongoing tax reform agenda under President Bola Tinubu, according to Taiwo Oyedele, Minister of State for Finance designate and Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms.

Oyedele made the disclosure on Wednesday during a public engagement in Abuja, where he provided updates on the progress of the tax reforms. He noted that an additional 13 states have already presented the proposed law to their respective State Houses of Assembly for consideration, while others are advancing at various stages of implementation.

The States Tax Harmonisation Law aims to streamline taxation at the subnational level by eliminating nuisance taxes, preventing the harassment of citizens and businesses under any pretext, simplifying tax processes, protecting taxpayers' rights, and ending unfair or multiple taxation practices.

This development aligns with the broader national tax reforms signed into law in June 2025 and effective from 2026, which include measures such as a ₦800,000 annual tax-free income threshold for individuals, a 20% rent deduction allowance, zero VAT on essential goods, and other initiatives designed to modernise Nigeria's tax system, boost compliance, and support economic growth.

Oyedele's announcement highlights increasing state-level adoption of the federal-led reforms, demonstrating growing collaboration between the federal and state governments to create a more efficient, equitable, and business-friendly tax environment across the federation.

Experts view this as a positive step toward reducing overlapping levies that have long burdened taxpayers, particularly small businesses and informal sector operators. As more states domesticate the harmonised framework, the reforms are expected to enhance revenue generation while minimising administrative burdens and promoting investor confidence.

The federal government continues to engage with remaining states to accelerate the process, emphasising that harmonisation is essential to avoiding conflicts in tax administration and ensuring sustainable fiscal policy nationwide.