The harmonised tax law in Nigeria has reached a new milestone, with 21 states passing legislation designed to reduce multiple taxation, tackle illegal revenue collection and create a simpler tax system for businesses and residents. The Joint Revenue Board (JRB) announced the development during a press briefing in Abuja on Wednesday, October 28, 2026.
The board’s Executive Secretary, Olusegun Adesokan, said the number of states that had passed the Model Harmonised Taxes and Levies Law increased from 20 to 21 within a day. The development forms part of wider efforts to improve tax administration and address complaints about overlapping charges imposed by different authorities.
The 21 states are Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta and Ondo. The remaining 15 states had yet to enact the model legislation when the board made its announcement.
The JRB developed the framework with the Presidential Committee on Fiscal Policy and Tax Reforms. It seeks to replace more than 100 fragmented state and local government taxes and levies with nine approved categories, making revenue collection more consistent and easier to understand.
The categories include income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charges and daily tickets. These cover different tax obligations and fees for services, including certain market, transport and local government activities.
How the Harmonised Tax Law in Nigeria Could Help Businesses
The reform could provide relief for small businesses, market traders, transport operators and companies that regularly move goods between locations. Many operators have complained about repeated payment demands from different revenue agents, which increase expenses and make it harder to plan their budgets.
By setting out recognised tax categories, the harmonised tax law in Nigeria aims to clarify which charges authorities can legally collect. It also prohibits practices such as setting up roadblocks for tax collection, demanding unauthorised cash payments and selling unofficial revenue stickers or emblems.
These changes could reduce the extra costs traders face when transporting food, farm produce and other goods. If businesses spend less on unauthorised payments, they may have more money to maintain their operations, employ workers or expand their activities.
Consumers could also benefit if lower transport and operating costs ease pressure on the prices of goods. However, any reduction in prices will depend on how businesses respond and whether authorities effectively stop illegal collections.
The reform does not mean that every tax has been abolished. Individuals and businesses must still pay legitimate taxes and approved charges that apply to their activities.
Implementation Will Determine the Reform’s Success
Despite the progress, the JRB has acknowledged that illegal collections and harassment of traders and transport operators remain problems. The board is working with the police and state revenue authorities to strengthen enforcement against unauthorised collectors, particularly those operating along highways. Adesokan said enforcement measures would begin soon.
The distinction between passing the law and enforcing it remains important. Although 21 states have enacted the model legislation, the announcement does not confirm that every state has fully implemented its provisions or eliminated illegal levies.
State governments must ensure that revenue officials understand the rules and follow approved collection procedures. They must also inform traders and residents about their tax obligations so that people can identify unlawful payment demands.
For the reform to deliver meaningful results, authorities must sustain enforcement and hold offenders accountable. The real measure of success will be fewer illegal levies, clearer tax obligations and a more predictable environment for businesses across Nigeria.
