At least 12 Nigerian states have adopted the new tax harmonisation law, while 13 additional states are considering similar legislation, according to Taiwo Oyedele, Chairman of the Presidential Tax and Fiscal Policy Committee.

Oyedele made the disclosure on Wednesday in Abuja during the graduation ceremony of 5,900 young entrepreneurs trained by the MTN Foundation in entrepreneurship, business, and innovation.

States moving toward tax reform

He explained that the tax harmonisation initiative is part of the broader fiscal reforms introduced by President Bola Tinubu’s administration.

According to him, while 12 states have already passed the law, 13 others have submitted the proposed bill to their state Houses of Assembly, and several more are in different stages of reviewing the reforms.

The initiative aims to modernise Nigeria’s tax system and improve fiscal coordination between federal and state governments.

Reducing multiple taxation

Oyedele said the reform is designed to address long-standing issues in Nigeria’s tax structure, particularly multiple taxation and unofficial levies imposed on businesses and citizens.

The new framework seeks to:

  • Eliminate nuisance taxes
  • Simplify tax payment processes
  • Strengthen taxpayers’ rights
  • Reduce harassment by tax collectors

He noted that transparency, accountability, and fiscal discipline remain essential elements of an effective tax system.

Impact on businesses and the economy

Economic experts say harmonising tax laws across states could significantly improve Nigeria’s business environment.

Multiple and inconsistent taxes across states have long been a major challenge for businesses, especially small and medium-sized enterprises (SMEs).

If fully implemented nationwide, the reforms could:

  • Lower compliance costs for businesses
  • Encourage investment across states
  • Improve government revenue collection
  • Strengthen confidence in Nigeria’s tax system

A more predictable tax structure could also support economic growth by making it easier for companies to expand operations across different states.

Tinubu’s broader fiscal reforms

The tax harmonisation policy is part of the federal government’s wider plan to restructure Nigeria’s fiscal system.

On June 26, 2025, President Tinubu signed four tax reform bills into law, marking a major step toward modernising the country’s tax framework.

According to the president, the reforms are not primarily intended to increase tax rates, but to create a more organised and transparent tax system.

The administration believes that improving the structure of tax collection will help government generate stable revenue to fund infrastructure, social services, and economic development.