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Twenty-one Nigerian states have enacted the Model Harmonised Taxes and Levies Law as part of efforts to eliminate multiple taxation, tackle illegal revenue collection and improve tax administration across the country.
Olusegun Adesokan, Executive Secretary of the Joint Revenue Board (JRB), disclosed this on Wednesday during a press briefing at the board’s headquarters in Abuja. He said the reforms had consolidated more than 100 existing taxes and levies into nine categories, creating a framework for more consistent tax administration across states.
“As of yesterday, 20 states had passed it. But by yesterday evening, I understood that we have 21 states now,” Adesokan said.
According to a presentation at the briefing, the states that have adopted the legislation 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 adoption means that 15 states have yet to enact the model legislation. However, the JRB expressed optimism that more states would complete the process in the coming months.
Tax harmonisation targets overlapping levies
Adesokan explained that the model law was developed in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms to address overlapping taxes imposed by different levels of government.
The framework groups existing taxes and levies into nine categories: income tax, stamp duties, property tax, road tax, haulage levy, economic development levy, harmonised levy, user charge and daily ticket.
Under the classification, user charges cover services such as parking, signage, street naming, waste disposal and certain registration fees. Daily tickets encompass market levies, abattoir fees and transport-related charges.
By consolidating these collections into defined categories, the reform seeks to simplify the tax landscape for businesses, traders, transport operators and other taxpayers while reducing opportunities for multiple charges on the same economic activity.
For businesses operating across state boundaries, harmonised tax rules could also improve predictability and make it easier to understand their obligations. Effective implementation, however, will depend on states aligning their revenue collection practices with the legislation.
JRB steps up efforts against illegal revenue collection
Despite progress on legislative adoption, Adesokan acknowledged that multiple taxation and the harassment of traders and transporters remained widespread.
“We know the problem exists, and we are working to fix it. We may not be able to clear everything completely today, but as time goes on, we are working on it,” he said.
The JRB is collaborating with the police and state revenue authorities to establish an enforcement structure targeting unauthorised revenue collectors, particularly those operating along highways.
According to Adesokan, illegal roadside collections increase transportation costs, with the additional expenses potentially feeding into food prices and the cost of goods.
The enforcement effort is intended to address informal collection practices that place additional financial pressure on transport operators and businesses moving goods across the country.
Ban on revenue stickers and roadblock collections
A presentation by the JRB disclosed that the board’s 158th meeting approved a nationwide ban on the sale of revenue stickers and emblems. The decision also introduced a zero-tolerance policy towards roadblocks and cash collection.
Adesokan said enforcement would begin soon, while acknowledging that practices established over several decades would require sustained intervention to dismantle.
The proposed measures form part of a wider effort to make revenue administration more transparent and reduce unauthorised charges imposed on individuals and businesses.
For the reforms to achieve their intended effect, enforcement will be critical alongside legislative adoption. States will need to ensure that revenue collection is conducted through authorised channels and that taxpayers are not subjected to levies outside the harmonised framework.
Tax reforms linked to broader economic measures
Adesokan added that the National Economic Council had identified subnational tax harmonisation as a priority under its 90-day economic action plan.
The inclusion of the initiative reflects growing attention to the role of state-level tax administration in reducing business costs and supporting a more consistent fiscal environment across Nigeria.
The JRB also reported an increase in tax revenue among states, with collections from 23 states rising by 27 per cent in the first half of 2026 compared with the corresponding period in 2025.
Data from the same group of states indicated that approximately 92 per cent of income taxpayers were paying lower or zero income tax under the revised system.
The figures suggest that tax relief and revenue growth have occurred alongside the broader reform programme in the states covered by the data. However, the reported increase in collections and the reduction in income tax liabilities represent separate outcomes within the wider changes to tax administration.
Implementation remains key to reducing the tax burden
The adoption of the Model Harmonised Taxes and Levies Law by 21 states marks progress towards a more coordinated subnational tax system. The remaining challenge is to ensure that the legislation translates into consistent practices on the ground.
For businesses, traders and transport operators, the impact will depend on whether overlapping levies, unauthorised collections and roadside harassment decline as enforcement expands.
As more states consider adopting the model law, sustained coordination between the JRB, state revenue authorities and law enforcement agencies will be important to achieving the central objectives of tax harmonisation: simpler tax obligations, greater transparency and a more predictable environment for economic activity.
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