Twelve states across the federation have so far adopted and harmonised the new tax laws with their respective state tax laws, as part of ongoing fiscal reforms aimed at strengthening revenue generation and improving economic coordination.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, disclosed this during his presentation at the National Economic Council Conference held in Abuja.
According to him, beyond the 12 states that have already aligned their tax laws, 13 other states currently have the bills before their houses of assembly, while 11 states are in the final stages of presenting the proposed laws to their state legislatures.
Oyedele explained that it is important for states to adopt and harmonise the new tax laws to avoid multiple taxation and create a more predictable tax environment for businesses and individuals.
He also advised state governors to grant autonomy to their internal revenue agencies to strengthen institutional capacity. “Let us stop using consultants to collect taxes. It undermines our ability to do what is right,” he said. He added, “The new tax law says you can’t use consultants to do the routine work of the tax authority, and their autonomy must be guaranteed.”
Oyedele further disclosed that the Federal Government plans to introduce a tax amnesty programme as part of the broader reform agenda. Addressing members of the NEC, which comprises all state governors and is chaired by the Vice President, he said, “As part of this reform, there is a plan for a voluntary disclosure programme, in other words, people admit that they have not been paying their taxes diligently over the years, and they don’t have the money to pay off immediately. If we don’t clean the past, we are not sure we will get the money going forward. So we need your help to adopt a tax amnesty programme that we are designing that will help people to come clean with their past tax compliance.”
In a communique issued at the end of the conference, the council emphasised the need to restructure and realign economic policies to promote inclusivity, equity, and social cohesion. The communique stressed the importance of improving living standards and strengthening outcomes in human capital development (HCD).
The council urged state governments to increase per capita spending on health, education, and youth employment to improve human capital outcomes and expand opportunities for economic participation. It noted that Nigeria’s persistent underinvestment in education and health remains a major concern, especially when compared with other countries.
According to the communique, there is an urgent need to ramp up investment in key social sectors such as education, health, and nutrition to drive long-term growth and stability.
The NEC also agreed to implement measures to support domestic production, with the aim of making the Nigerian economy more productive, competitive, and export-focused. This includes incentivising subnational entities to prioritise effective investment planning.
It further noted that Nigeria’s federal system is unique, as the constitution vests powers in local government areas, states, and the federal government, sometimes exclusively and sometimes jointly, to achieve fundamental national objectives.
The communique also called on federal and state governments to foster stronger partnerships with the private sector, civil society organisations, and development partners to achieve inclusive and sustainable national development.
