Lagos to Trim its Taxes From 65 to 9 in 2026, Phases Out Bicycles, Trucks, Canoes, Other Levies
- Lagos State plans to simplify taxes by reducing 65 levies to nine by 2026, with an introduction of new levies in 2026
- The reform aims to ease the tax burden on businesses and enhance compliance in the long run
- Local governments pledge support to eliminate tax duplication and streamline revenue collection
The Lagos State Government has announced plans to introduce new levies covering bicycles, wheelbarrows, canoes, carts, trucks and several other activities as part of a sweeping tax reform scheduled to take effect in 2026.
The move comes under newly proposed tax laws aimed at simplifying revenue collection and ending the long-standing problem of multiple and overlapping taxes across the state.
Source: Getty Images
The proposal was unveiled by the Office of the Special Adviser to the Governor on Taxation and Revenue during a two-day tax reform summit themed “The Lagos Implementation Roadmap”, held on Tuesday, December 23, 2025.
Why Lagos is reforming its tax system
Speaking at the summit, the Special Adviser on Taxation and Revenue, Abdul-Kabir Opeyemi Ogungbo, said the reform was driven by persistent complaints from businesses and individuals over excessive taxation and harassment by multiple revenue agents.
According to him, some businesses, especially in the hospitality sector, are visited by more than 16 different revenue-collecting bodies, a situation he described as unsustainable.
He said the new framework is designed to bring clarity, reduce duplication and create a fairer tax environment for residents and investors.
From 65 taxes to just nine
Under the proposed harmonisation framework, Lagos plans to collapse its current 65 taxes and levies into just nine single-digit charges. These include income tax, stamp duties, property tax, road tax and haulage levy.
Other proposed charges are the economic development levy and a broad harmonised levy that will cover shops, motor parks, slaughter slab fees, domestic animal fees, liquor licences, TV and radio fees, as well as levies on bicycles, trucks, canoes, wheelbarrows and carts that are currently charged separately by local governments.
What the harmonised levies will cover
The new structure also introduces a unified user charge, which will combine fees for birth, death and marriage registration, street naming, signage and mobile advertisements, refuse and sewage disposal, burial permits, religious establishment permits and wharf landing charges.
In addition, daily ticketing will cover all market-related levies, including tickets paid by transporters.
According to Ogungbo, this consolidation will allow better taxpayer data management and streamline revenue operations between state and local governments.
Implementation and legal framework
To ensure smooth implementation, the state plans to set up a technical committee and develop a legal framework before deploying the harmonised system.
Revenue agencies will also undergo repeated training to ensure consistent enforcement across Lagos.
Representing Governor Babajide Sanwo-Olu, the Attorney General and Commissioner for Justice, Lawal Pedro (SAN), said the reforms are necessary to prepare residents and businesses for what to expect when the new tax laws come into force in 2026.
He also called for similar harmonisation at the national level to promote uniformity across Nigeria.
Boosting confidence and reducing poverty
Lagos State Internal Revenue Service chairman, Ayodele Subair, said the reform would ease the tax burden on businesses and improve planning and compliance. He added that the policy is also designed to help reduce poverty by easing costs related to food, housing and transportation.
Subair disclosed that many essential goods and services previously exempted from VAT will become zero-rated by 2026, meaning no sales tax will apply. He said the new approach ensures that everyone, including farmers and small-scale operators, benefits more fairly from the tax system.
Local governments pledge compliance
The summit featured technical sessions with government agencies and local council representatives.
Source: UGC
Chairperson of Conference 57 Lagos, Abdullahi Sesan Olowa, pledged that local governments would fully support the reforms and tackle tax duplication at the grassroots level once the harmonised taxes take effect.
New tax law: What you must know as salary earner
Legit.ng earlier reported that on January 1, 2026, one of the most comprehensive reforms of Nigeria’s tax system is set to redefine how individuals and businesses are taxed.
There has been an intense debate among Nigerians, especially the working class, over what the law means for their already stretched finances.
While the government insists that the reform only aims to broaden the tax base and simplify compliance, there is misinformation and conflicting reports that have left many workers confused.
Source: Legit.ng
