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Nigeria to introduce new rules against multiple taxation — Oyedele

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Nigeria intensifies crackdown on illegal taxes imposed by states and LGAs.
FG moves to end illegal taxes by states, LGAs with fresh regulations.
  • The Federal Government has announced plans to introduce fresh regulations against illegal and multiple taxation
  • Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, revealed that tax harmonisation remains one of the key priorities of the current administration as it seeks to simplify Nigeria’s tax system
  • The minister revealed that 15 states have already enacted the required laws aligning with the new tax reform framework

The Federal Government has announced plans to introduce fresh regulations and implementation guidelines aimed at tackling illegal taxation and multiple levies imposed by state and local governments across Nigeria.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during an interview on Channels Television, stating that tax harmonisation remains a key focus of the current administration.

Although the Nigerian Tax Act and the Nigerian Tax Administration Act officially came into effect on January 1, 2026, implementation efforts have largely remained at the federal level.

The government is now intensifying collaboration with state and local authorities to ensure uniform adoption of the reforms.

Oyedele explained that discussions were ongoing with subnational governments to eliminate unauthorised taxes, automate tax collection processes, and improve accountability.

“Some of the excessive tax burden and multiple taxes are at the local government and state levels,” he said.
“We’re working now with the subnational for them to enact the law for themselves to stop those illegal taxes. And also to automate the process so that you can take out corruption and the money goes to the government so you can serve the people better.”
He added that new “regulations and guidelines and orders” would be introduced in the coming months to fully implement the reforms.

According to the minister, 15 states have already enacted the necessary laws, while consultations continue with the remaining states.

“Our role in the Ministry of Finance around collaboration and coordination is not limited to organs and units within the federal government. It cuts across the subnational and that role, we’re taking it very seriously,” Oyedele stated.

The reforms stem from four major tax bills signed into law by President Bola Tinubu in June 2025.

The legislation includes the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The bills sparked widespread public debate and skepticism before eventually gaining approval from the National Assembly after extensive consultations with stakeholders, business groups, and regional representatives.

The implementation phase officially commenced on January 1, 2026.

Oyedele also acknowledged gaps in public finance communication and transparency, saying government fiscal data remains difficult for many Nigerians to access.

“One of the areas where we haven’t really done very well is in communication, transparency, and accountability,” he admitted, noting that government websites should provide easier access to fiscal information.

He further stressed that Nigeria should become the primary source of its own economic data instead of relying heavily on international institutions such as the World Bank.

“I have seen some of my colleagues in government reference the World Bank data about Nigeria. I said, no, it should be the other way around. The World Bank should be referencing us, not the other way,” he said.

The minister also revealed that cooperation between the Ministry of Finance and the Central Bank of Nigeria has improved significantly under the current administration and would be strengthened through legal frameworks.

The planned tax harmonisation guidelines come shortly after the unveiling of the Office of the Tax Ombud’s digital case management portal, official website, and call centre designed to address taxpayer complaints and improve dispute resolution.

The Office of the Tax Ombud, headed by John Nwabueze, is expected to function as an independent platform for resolving tax-related disputes, encouraging voluntary compliance, and boosting confidence in Nigeria’s tax administration system.

The Federal Government said the broader reforms are intended to simplify tax administration, reduce leakages, improve transparency, and create a more predictable business environment for taxpayers nationwide.

NRS launches unified Tax ID system for all taxpayers in Nigeria

Meanwhile, TheRadar earlier reported that the Nigeria Revenue Service (NRS), in partnership with the Joint Revenue Board (JRB), had introduced a unified Taxpayer Identification (Tax ID) system for all taxable individuals and entities in Nigeria.

According to the NRS, the initiative aligns with Sections 6, 7, and 8 of the Nigeria Tax Administration Act, 2025, which require every taxable person in Nigeria to possess a Tax ID.

The agency explained that the new framework is aimed at strengthening tax administration, improving transparency, and enhancing service delivery within Nigeria’s tax system.

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