Dr. Taiwo Oyedele has disclosed that at least twelve states across Nigeria have already enacted the Tax Harmonisation Law as part of the ongoing fiscal reform programme being implemented by the Federal Government.
The disclosure was made during a graduation ceremony in Abuja for about 5,900 young entrepreneurs trained under the MTN Foundation’s entrepreneurship and innovation programme.
According to Oyedele, the adoption of the harmonised tax framework by these states represents early progress in the nationwide effort to restructure Nigeria’s tax system and remove the complexities that have historically characterised revenue collection at state and local government levels.
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He stated that beyond the twelve states that have already enacted the law, another thirteen states have submitted the proposed legislation to their respective State Houses of Assembly for consideration and passage, while several others are still in different stages of implementing the reform measures.
The tax harmonisation initiative forms a central component of the broader fiscal reforms introduced under the administration of President Bola Tinubu.
The reforms aim to modernise Nigeria’s fiscal framework, improve the ease of doing business, and strengthen revenue administration across the federation.
Oyedele explained that the harmonisation law is designed to eliminate multiple and nuisance taxes imposed by different authorities, simplify the tax structure, and reduce instances where businesses and citizens are subjected to repeated or overlapping levies.
He emphasised that the reform also seeks to protect taxpayers from harassment by illegal revenue collectors and ensure fairness in how taxes are imposed and administered.
The policy is intended to standardise the types of taxes that states and local governments are permitted to collect while establishing clearer rules for compliance and enforcement.
Oyedele further stressed that transparency, fiscal discipline, accountability and responsibility are fundamental pillars required for an efficient tax system.
By harmonising taxes across states, the government expects to reduce revenue leakages, improve taxpayer confidence and stimulate economic activity, particularly for small and medium-scale enterprises that often face burdens from multiple local levies.
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The push for tax harmonisation follows several years of discussions around Nigeria’s fragmented revenue structure, where different tiers of government impose numerous taxes and levies.
The new framework seeks to consolidate these charges into a simpler system, aligning state tax practices with the broader national tax reform agenda currently being implemented.
Source: Nairametrics


