*Declares 21 states have adopted harmonised tax, levy legislation as authorities seek to dismantle multiple charges amid 27% rise in revenue
*FG, states plan joint audits to cut compliance costs, disruption to businesses, seeks to end roadside tax collection, others
James Emejo in Abuja
Executive Secretary, Joint Revenue Board (JRB), Mr. Olusegun Adesokan, has said disclosed that the implementation of the new tax regime has yielded early fruits with a 27 per cent increase in tax revenue from 23 states in the First Half of the year (H1 2026) compared to the corresponding period of 2025.
He said the performance reflected a shift towards bringing more high-income earners into the tax net while reducing the burden on lower-income taxpayers.
The JRB boss spoke during an engagement with journalists in Abuja.
He said the reform was also beginning to improve revenue administration through the harmonisation of taxes and levies, the introduction of a National Tax Identification system and closer coordination among federal and state tax authorities.
Adesokan said 21 states had adopted the harmonised taxes and levies legislation as of October 27, with the National Economic Council (NEC) identifying the initiative as one of its priorities for implementation within a 90-day action plan.
The figures provide an early indication of the reform’s potential to improve domestic revenue mobilisation without imposing additional tax burdens on low-income households and businesses.
However, the board acknowledged that multiple taxation, unauthorised collections and confusion over legitimate government charges remain widespread challenges.
21 states move to harmonise levies
Adesokan said the harmonisation initiative was designed to consolidate numerous taxes, levies and charges imposed by subnational authorities into nine broad categories, reducing duplication and making compliance more predictable for businesses and individuals.
He said the board developed the framework in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms and had circulated it to states for adoption.
He acknowledged that unauthorised roadside collections remained a problem, including demands by individuals and groups claiming to represent government authorities.
He said the JRB was working with the police and state revenue authorities on a coordinated enforcement mechanism to address the practice.
According to him, the board also planned to intensify efforts to eliminate illegal collections affecting transport operators and traders, although Adesokan did not give a definitive commencement date for the proposed enforcement measures.
He urged businesses to verify suspicious demands with the relevant tax authorities and ensure that payments were made into authorised government accounts rather than accounts belonging to private consultants or collectors.
The listed the states to include Kebbi, Niger, Kaduna, Plateau, Ekiti, Benue, Zamfara, Enugu, Kogi, Abia and Kwara.
Others are Nasarawa, Anambra, Gombe, Akwa Ibom, Adamawa, Bayelsa, Delta, Yobe, Ondo and Borno.
Low-income earners get tax relief
Furthermore, Adesokan said data obtained from 23 states showed that an average of 92 per cent of income earners covered by the assessment now paid lower or zero personal income tax under the new framework.
He said the changes were intended to leave more money in the hands of lower-income earners while ensuring that individuals with greater financial capacity contributed a fairer share.
Under the revised personal income tax structure, the first N800,000 of annual taxable income is taxed at zero per cent, while higher income bands attract progressively higher rates, reaching 25 per cent for the top band.
Adesokan stressed that the reform was guided by the principle of taxing prosperity rather than poverty, adding that the government had not introduced new taxes through the framework.
He acknowledged concerns about traders and small businesses who continued to complain about tax demands despite the exemptions provided under the new rules.
According to him, inadequate public awareness and the persistence of unauthorised collectors had contributed to the confusion.
He said the board would continue its public education campaign to clarify which taxpayers were exempt from personal income tax and distinguish legitimate taxes from other authorised charges.
However, the 92 per cent figure relates to the personal income tax assessment presented by the board and does not qualify as an exemption from every form of taxation, including applicable consumption taxes.
National tax ID to curb multiple taxation
Adesokan said the National Tax Identification system was another major component of the reform, providing a common means of identifying taxpayers across federal and state jurisdictions.
The system is expected to link existing taxpayer records and enable authorities to verify tax compliance without requiring individuals and businesses to repeatedly establish their status in different states.
He said the arrangement would reduce administrative bottlenecks, particularly for individuals conducting business or property transactions outside their state of residence.
He stated that JRB was also promoting uniform tax administration guidelines and information-sharing arrangements to improve transparency and voluntary compliance.
Joint audits planned for businesses
In a further measure to reduce the cost of compliance, Adesokan said the JRB was preparing to facilitate joint tax audits involving NRS and state internal revenue services.
He said the arrangement would enable relevant authorities to coordinate their examinations of businesses rather than visiting the same companies separately at different times.
Under the proposed approach, state authorities could examine personal income tax compliance, including employers’ obligations, while the federal revenue service would address the company’s relevant federal tax obligations.
Adesokan said coordinated audits would reduce disruption to business operations, paperwork and the time companies spend responding to separate tax assessments.
He added that the JRB’s mandate was to coordinate and harmonise revenue administration rather than collect taxes directly.
Implementation challenges remain
Meanwhile, despite the early progress, there were concerns about continued roadside collections, conflicting demands from federal and state tax authorities, and the limited visibility of public benefits from taxes paid.
Adesokan said the board was working to improve collaboration between revenue agencies, including through joint audits and more consistent administration of tax laws.
He also acknowledged complaints about levies imposed on pensioners and residents in the Federal Capital Territory (FCT), adding that the relevant legal provisions would be examined.
The JRB chief maintained that the ultimate test of the reform would not be the volume of taxes collected alone, but whether businesses could expand, create jobs and contribute to economic growth without being weighed down by multiple and unpredictable charges.
No more roadblocks, cash collection
Adesokan added that JRB at its 158th meeting banned the sales of stickers and emblems nationwide.
He said, “This means motorists will no longer be subjected to the purchase of irrelevant documents before transporting goods from one part of the country to another. Thereby reducing the cost of farm produce.”
He explained that the prohibition was supported by the model Harmonised Taxes & Levies Law and the Presumptive Tax Regulations, 2026.