Nigerian states record 27% rise in tax revenue

Nigeria recorded a 27 in step with cent build up in tax income accrued via 23 states within the first part of 2026, as the federal government’s new tax regime takes impact and efforts accentuate to curb more than one taxation.

The Govt Secretary of the Joint Income Board (JRB), Olusegun Adesokan, disclosed this on Wednesday in Abuja, pronouncing the income accrued via the 23 states between January and June used to be upper than their income within the corresponding length of 2025.

Mr Adesokan mentioned the rise used to be recorded along provisions supposed to scale back private revenue tax for low- and middle-income earners, arguing that the reforms had been designed to make stronger income assortment with out putting an over the top burden on unusual Nigerians.

“The imaginative and prescient is to tax prosperity, no longer poverty. Tax the fruit, no longer the seed. We must tax returns, no longer investments,” he mentioned.

Consistent with figures introduced via the board, the 23 states generated about N2.2 trillion within the first part of 2026, when compared with N1.75 trillion in the similar length of 2025.

Mr Adesokan attributed the expansion to efforts to make stronger tax management, widen the tax base and be sure that the ones with larger monetary capability give a contribution accurately.

He mentioned the board’s information confirmed that about 92 in step with cent of revenue earners within the states coated via the figures had been paying decrease private revenue tax or no private revenue tax below the brand new regime.

The figures quilt most effective the 23 states that submitted returns to the board and don’t constitute the tax efficiency of all 36 states and the Federal Capital Territory.

Mr Adesokan additionally disclosed that 21 states had followed the fashion harmonised taxes and levies legislation advanced via the JRB in collaboration with the Presidential Committee on Fiscal Coverage and Tax Reforms.

The regulation is meant to deal with more than one taxation on the subnational degree, the place companies and people infrequently face overlapping calls for from other executive government.

The framework consolidates greater than 100 taxes, levies and costs into 9 classes, with the purpose of constructing the gadget more uncomplicated to grasp and agree to.

“One of the most issues it addresses is the problem of more than one taxation on the subnational degree, and it’s a significant issue,” Mr Adesokan mentioned.

“Now and again, the state executive will acquire the similar factor. So what we’ve got completed is we’ve got harmonised all of the more than one taxes into simply 9.”

He wired that the reforms weren’t supposed to introduce further taxes however to simplify present levies, make stronger duty and make income management extra constant throughout states.

The 21 states that experience followed 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 rest 15 states are but to undertake the fashion regulation.

Mr Adesokan mentioned the method required legislative approval and consultations with stakeholders, slightly than directives from state governors by myself.

He expressed self assurance that extra states would undertake the framework as implementation progresses.

New tax regime provides aid to earners

The Nigeria Tax Act 2025, which took impact on 1 January 2026, presented a revised private revenue tax construction, together with an exemption at the first N800,000 of annual taxable revenue. Upper revenue bands draw in step by step upper charges, as much as 25 in step with cent on taxable revenue above N50 million.

Mr Adesokan mentioned the adjustments had been supposed to depart more cash within the arms of eligible low- and middle-income earners whilst making sure that upper earners give a contribution in keeping with their capability.

He famous that the reforms could be judged no longer simply via the choice of taxes got rid of or consolidated, however via whether or not companies may just extend, jobs had been created and families skilled stepped forward financial prerequisites.

“The luck of tax reform will proceed to be measured no longer via taxes being got rid of, however via companies with the ability to develop, jobs being created and prosperity being shared,” he mentioned.

The revised gadget additionally supplies for eligible deductions, together with pension contributions and sure housing-related bills, in calculating taxable revenue.

The board has suggested employers and payroll directors to use the brand new provisions accurately when calculating staff’ tax deductions.

JRB goals unlawful roadside collections

The board may be running with the police and state income government to curb unlawful levies and unauthorised collections alongside highways and delivery routes.

Mr Adesokan mentioned such practices build up the price of transporting items, with the extra bills incessantly handed directly to customers via upper costs for meals and different very important commodities.

“You’ll be able to’t simply be preventing and harassing other people,” he mentioned, calling for larger use of era and more potent enforcement in opposition to unlawful creditors.

He said that finishing the observe would take time as a result of roadside collections had transform entrenched in some spaces.

The JRB has additionally introduced measures in opposition to the sale of income stickers and symbols, roadblocks for income assortment and unauthorised money bills.

Mr Adesokan suggested taxpayers to make sure income calls for with the right government and keep away from paying cash into non-public accounts or accounts belonging to experts with out correct affirmation.

He mentioned informal-sector buyers who qualify for revenue tax exemptions must no longer be subjected to revenue tax calls for, even though different lawful fees would possibly nonetheless follow.

Unmarried Tax ID to make stronger verification

Mr Adesokan mentioned the board used to be running with the Nigeria Income Carrier (NRS) and state interior income products and services to hyperlink present taxpayer id information to a countrywide Tax Id Quantity gadget.

The unified gadget is meant to lend a hand income government test taxpayers’ information throughout state barriers, scale back reproduction documentation and save you repeated revenue tax calls for bobbing up from deficient coordination.

He mentioned taxpayers would have the ability to retrieve their Tax IDs via designated on-line platforms the usage of their private main points.

The board mentioned it’s also making plans joint tax audits involving the NRS and state income government to scale back repeated inspections and disruptions to companies.

Mr Adesokan suggested Nigerians with court cases about tax management to hunt redress via the right channels, together with the Place of work of the Tax Ombud, which he mentioned supplies a loose street for resolving taxpayer court cases.

The JRB, previously referred to as the Joint Tax Board, won an expanded mandate below the Joint Income Board (Established order) Act 2025. Its duties come with coordinating tax management, harmonising taxes and levies, resolving disputes between tax government and making improvements to the sharing of tax-related information.

Mr Adesokan mentioned without equal take a look at of the reforms could be whether or not they make stronger compliance, scale back the load on companies and fortify financial enlargement.

He added that the federal government’s purpose used to be to construct a tax gadget this is truthful, equitable, responsible and clear, with out enforcing calls for past what taxpayers can somewhat undergo.