At least 12 states in Nigeria have enacted tax harmonisation laws aimed at simplifying the tax system, eliminating nuisance taxes, and protecting taxpayers’ rights, Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has confirmed.
Oyedele made the disclosure during a briefing in Abuja, highlighting the progress of the federal government’s ongoing tax reform initiative.
The harmonisation programme is part of broader efforts to standardise tax policies across Nigeria and improve the ease of doing business.
The tax reform aims to address inconsistencies in state tax regimes, reduce overlapping levies, and ensure that taxation is fair, transparent, and conducive to investment.
According to Oyedele, the 12 states have officially passed legislation to harmonise their tax codes in line with the federal framework.
The reforms are intended to simplify the administration of taxes, reduce multiple tax collections, and protect citizens from arbitrary or nuisance levies.
Oyedele explained that harmonisation provides a clear structure for taxation, eliminating the confusion that sometimes arises from differing state and local government tax laws.
He said the move has been welcomed by taxpayers and investors alike because it promotes predictability and compliance while safeguarding taxpayers’ rights.
The initiative also includes training and capacity-building for tax officials to ensure proper implementation of the harmonised system.
States that have passed the harmonisation laws are expected to align their revenue collection processes with federal standards, including proper documentation and issuance of receipts.
The tax harmonisation laws are expected to improve revenue collection efficiency while fostering a business environment where entrepreneurs and companies can operate without undue tax burdens.
The federal government sees the reform as a way to strengthen state and local government finances while protecting citizens from arbitrary taxation practices.
