Nigerian states record 27% rise in tax revenue – Official

Nigeria recorded a 27 per cent increase in tax revenue collected by 23 states in the first half of 2026, as the government’s new tax regime takes effect and efforts intensify to curb multiple taxation.

The Executive Secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, disclosed this on Wednesday in Abuja, saying the revenue collected by the 23 states between January and June was higher than their earnings in the corresponding period of 2025.

Mr Adesokan said the increase was recorded alongside provisions intended to reduce personal income tax for low- and middle-income earners, arguing that the reforms were designed to improve revenue collection without placing an excessive burden on ordinary Nigerians.

“The vision is to tax prosperity, not poverty. Tax the fruit, not the seed. We should tax returns, not investments,” he said.

According to figures presented by the board, the 23 states generated about N2.2 trillion in the first half of 2026, compared with N1.75 trillion in the same period of 2025.

Mr Adesokan attributed the growth to efforts to improve tax administration, widen the tax base and ensure that those with greater financial capacity contribute appropriately.

He said the board’s data showed that about 92 per cent of income earners in the states covered by the figures were paying lower personal income tax or no personal income tax under the new regime.

The figures cover only the 23 states that submitted returns to the board and do not represent the tax performance of all 36 states and the Federal Capital Territory.

Mr Adesokan also disclosed that 21 states had adopted the model harmonised taxes and levies law developed by the JRB in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms.

The legislation is intended to address multiple taxation at the subnational level, where businesses and individuals sometimes face overlapping demands from different government authorities.

The framework consolidates more than 100 taxes, levies and charges into nine categories, with the aim of making the system easier to understand and comply with.

“One of the things it addresses is the issue of multiple taxation at the subnational level, and it’s a major problem,” Mr Adesokan said.

“Sometimes, the state government will collect the same thing. So what we have done is we have harmonised all the multiple taxes into just nine.”

He stressed that the reforms were not intended to introduce additional taxes but to simplify existing levies, improve accountability and make revenue administration more consistent across states.

The 21 states that have adopted the framework 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 remaining 15 states are yet to adopt the model legislation.

Mr Adesokan said the process required legislative approval and consultations with stakeholders, rather than directives from state governors alone.

He expressed confidence that more states would adopt the framework as implementation progresses.

New tax regime offers relief to earners

The Nigeria Tax Act 2025, which took effect on 1 January 2026, introduced a revised personal income tax structure, including an exemption on the first N800,000 of annual taxable income. Higher income bands attract progressively higher rates, up to 25 per cent on taxable income above N50 million.

Mr Adesokan said the changes were intended to leave more money in the hands of eligible low- and middle-income earners while ensuring that higher earners contribute according to their capacity.

He noted that the reforms would be judged not merely by the number of taxes removed or consolidated, but by whether businesses could expand, jobs were created and households experienced improved economic conditions.

“The success of tax reform will continue to be measured not by taxes being removed, but by businesses being able to grow, jobs being created and prosperity being shared,” he said.

The revised system also provides for eligible deductions, including pension contributions and certain housing-related expenses, in calculating taxable income.

The board has urged employers and payroll administrators to apply the new provisions correctly when calculating workers’ tax deductions.

JRB targets illegal roadside collections

The board is also working with the police and state revenue authorities to curb illegal levies and unauthorised collections along highways and transport routes.

Mr Adesokan said such practices increase the cost of transporting goods, with the additional expenses often passed on to consumers through higher prices for food and other essential commodities.

“You can’t just be stopping and harassing people,” he said, calling for greater use of technology and stronger enforcement against illegal collectors.

He acknowledged that ending the practice would take time because roadside collections had become entrenched in some areas.

The JRB has also announced measures against the sale of revenue stickers and emblems, roadblocks for revenue collection and unauthorised cash payments.

Mr Adesokan urged taxpayers to verify revenue demands with the appropriate authorities and avoid paying money into private accounts or accounts belonging to consultants without proper confirmation.

He said informal-sector traders who qualify for income tax exemptions should not be subjected to income tax demands, although other lawful charges may still apply.

Single Tax ID to improve verification

Mr Adesokan said the board was working with the Nigeria Revenue Service (NRS) and state internal revenue services to link existing taxpayer identification records to a national Tax Identification Number system.

The unified system is intended to help revenue authorities verify taxpayers’ records across state boundaries, reduce duplicate documentation and prevent repeated income tax demands arising from poor coordination.

He said taxpayers would be able to retrieve their Tax IDs through designated online platforms using their personal details.

READ ALSO: Abandoned projects waste of taxpayers’ money — NRS chairman

The board said it is also planning joint tax audits involving the NRS and state revenue authorities to reduce repeated inspections and disruptions to businesses.

Mr Adesokan urged Nigerians with complaints about tax administration to seek redress through the appropriate channels, including the Office of the Tax Ombud, which he said provides a free avenue for resolving taxpayer complaints.

The JRB, formerly known as the Joint Tax Board, received an expanded mandate under the Joint Revenue Board (Establishment) Act 2025. Its responsibilities include coordinating tax administration, harmonising taxes and levies, resolving disputes between tax authorities and improving the sharing of tax-related data.

Mr Adesokan said the ultimate test of the reforms would be whether they improve compliance, reduce the burden on businesses and support economic growth.

He added that the government’s objective was to build a tax system that is fair, equitable, accountable and transparent, without imposing demands beyond what taxpayers can reasonably bear.