Relief for Nigerian Traders as 21 States Pass Laws to End Multiple Taxes, Illegal Levies
- Twenty-one states have passed harmonised tax laws aimed at ending multiple levies, illegal collections and tax roadblocks
- A national task force will target illegal revenue collectors, while 23 states reported N2.2 trillion in first-half 2026 revenue
- Tax reforms could raise eligible workers’ take-home pay, as the JRB rolls out a unified system with over 100 million tax IDs
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Traders, transport operators and manufacturers across Nigeria could soon experience relief from multiple taxation and illegal revenue collections following the passage of harmonised tax legislation in 21 states.
The Joint Revenue Board (JRB) said the legislation seeks to eliminate overlapping levies, unauthorised collections and tax-related roadblocks that increase business costs and ultimately affect consumer prices.
Source: Facebook
Speaking in Abuja on Wednesday, October 28, 2026, JRB Executive Secretary Olusegun Adesokan said the reforms would promote transparency, simplify revenue administration and protect businesses from arbitrary taxation.
21 states adopt harmonised tax laws
Developed in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms, the framework consolidates more than 100 subnational taxes, levies and charges into nine approved categories.
These include income tax, stamp duty, property tax, road tax, development levy, economic development levy, annual levies, user charges and other approved charges.
Adesokan explained that the legislation prohibits the sale of revenue stickers and emblems, unauthorised cash collections and the establishment of tax roadblocks.
He warned that individuals and organisations violating the provisions would face legal consequences.
JRB targets illegal highway tax collectors
To strengthen enforcement, the JRB is collaborating with the police and state revenue authorities to establish a national task force against illegal revenue collectors.
The initiative will target highways, transport corridors and local government areas where traders and commercial transport operators frequently encounter repeated payment demands.
However, the board acknowledged that passing the legislation does not automatically eliminate illegal collections.
States record N2.2 trillion revenue growth
Adesokan disclosed that internally generated revenue across 23 states increased from N1.75 trillion in the first half of 2025 to N2.2 trillion during the corresponding period of 2026.
The increase represents approximately 27 per cent growth, which he attributed to improved tax administration, economic activity and broader taxpayer participation.
The 23-state revenue figures are separate from the 21 states that passed the harmonised legislation and do not establish that the new laws caused the increase.
New tax reforms promise salary relief
Beyond businesses, the reforms also provide personal income tax relief for eligible salary earners.
Adesokan explained that an individual earning N20 million annually could see monthly take-home pay increase from approximately N1.281 million to N1.362 million.
This represents an additional N81,000 monthly, or N972,000 annually, depending on applicable deductions, including pension contributions, mortgage interest and qualifying rent relief.
Unified tax identification system takes shape
Meanwhile, the JRB is introducing a unified national Tax Identification system to improve taxpayer verification and reduce duplicate documentation.
Source: Facebook
Adesokan disclosed that more than 100 million tax identification numbers had been generated.
He said digitalisation, improved coordination and stronger enforcement would determine whether the reforms translate into meaningful relief for Nigerian businesses and households.
FG speaks on alleged plan to introduce fuel tax
Legit.ng earlier reported that the federal government has dismissed reports that it plans to introduce a fuel tax in Nigeria, describing the claims as misleading and insisting that the levy is not on its current agenda.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the clarification in a post on his official X account on Tuesday, October 20, 2026.
Source: Legit.ng
