Twenty-one states have adopted a harmonised tax law designed to curb multiple taxation, eliminate illegal levies and improve the business environment, as Nigeria’s tax reforms begin to deliver higher revenue alongside lower tax burdens for most income earners, the Joint Revenue Board (JRB) has said.
Olusegun Philip Adesokan, executive secretary, JRB, disclosed this at a press briefing in Abuja on wednesday, saying revenue collections across 23 states rose by 27 percent between January and June 2026 compared with the corresponding period of 2025.
The board said the increase came as the new tax regime reduced or eliminated personal income tax for a large proportion of earners, reinforcing the government’s stated objective of taxing prosperity rather than poverty.
Adesokan said 92 percent of income earners across the states covered by the board’s data were paying lower or zero income tax under the new regime, with the reforms intended to shift more of the burden towards those with greater capacity to pay.
‘The aim is to ensure that those who can afford to pay taxes contribute their fair share. We should not target people who are struggling to make ends meet; instead, we should focus on those with the capacity to pay,’ he said.
he said.
The harmonised tax law, developed in conjunction with the Presidential Committee on Fiscal Policy and Tax Reforms, seeks to simplify the fragmented system of state-level taxes, levies and charges that businesses have long criticised for increasing operating costs and creating uncertainty.
Adesokan said the model had consolidated hundreds of tax rates into nine categories, covering income tax, stamp duty, property tax, road tax, employment development levy, harmonised taxes, residual charges and daily ticketing, among others.
The board wants all states to adopt the framework, which prohibits practices including the mounting of roadblocks for tax collection, cash collection of taxes and the sale of unauthorised stickers and emblems. The law also provides penalties for violations.
The reforms are expected to reduce the burden on businesses operating across state boundaries, where inconsistent levies and overlapping demands from different authorities have complicated the movement of goods and raised costs.
The JRB is working with the police and state revenue authorities to establish a nationwide enforcement structure against illegal tax collectors operating along road transport corridors. The proposed task force is expected to extend to local government areas.
Adesokan said illegal collections contributed to high transportation costs because businesses were often compelled to pay multiple levies while moving goods between locations. Removing these charges, he said, could improve the movement of goods and ease pressure on prices.
‘The plan is that once we can clear them up, it truly impacts the prices of goods. It will create a freer environment for business to thrive. Ultimately, more money in the hands of Nigerians,’ he said.
The board also cited the new personal income tax structure as evidence that the reforms were changing the distribution of the tax burden. Under the regime effective from January 1, 2026, the first N800,000 of annual taxable income is taxed at zero percent, while the top personal income tax rate is 25 percent.
Adesokan said the revised framework expanded eligible deductions to include items such as mortgage interest and rent relief, alongside pension contributions and other qualifying deductions. He illustrated the impact using an annual income of N20 million, saying the revised calculation could increase monthly take-home pay by more than N80,000, depending on eligible deductions.
The JRB also highlighted the National Tax Identification system, developed in collaboration with the Nigerian Revenue Service, as a means of linking taxpayers’ records across jurisdictions. The system is intended to help authorities verify tax compliance and reduce instances in which individuals and businesses face repeated demands because their records cannot be confirmed across states.
The board said the new tax framework also provides more uniform rules for taxing the informal sector. Businesses with annual turnover of up to N3 million are exempt from income tax under the provisions cited by Adesokan, alongside specified categories of small operators, including roadside food vendors, mobile barbers and tailors.
He said the reforms were designed not to introduce new taxes but to simplify administration, improve compliance and ensure that people with greater means pay their fair share.
The JRB’s mandate under the Joint Revenue Board Establishment Act 2025 includes maintaining a coordinated database of tax identification numbers, resolving disputes between tax authorities, harmonising tax rates and facilitating revenue data exchange between federal and state agencies.
Adesokan said the success of the reforms would depend on their ability to help businesses expand, create jobs and spread prosperity, rather than simply increase government revenue.