Twenty-one states in Nigeria have adopted a harmonised tax law aimed at reducing multiple taxation, ending illegal revenue collection and improving the tax system for businesses and residents.
The development is expected to help simplify tax administration and address concerns about the numerous taxes and levies imposed on businesses operating across different states.
According to reports published on Thursday, October 29, the states have enacted the Model Harmonised Taxes and Levies Law, which is designed to establish a more organised approach to collecting taxes and other government charges.
The move comes amid ongoing concerns from business owners, traders and residents about the financial burden of multiple taxation and unofficial revenue collection.
Under the harmonisation initiative, authorities are seeking to make tax obligations clearer while reducing situations where businesses face overlapping demands from different government agencies.
The development could particularly benefit small and medium-sized businesses, which often struggle with complicated tax requirements and the cost of operating in different locations.
Multiple taxation has been a longstanding concern among business operators, especially those who transport goods or provide services across state boundaries.
The harmonised framework is intended to improve transparency, strengthen accountability and make it easier for taxpayers to understand their obligations.
However, the effectiveness of the initiative will depend on how consistently the states implement the law and whether enforcement agencies comply with the new rules.
The adoption represents a step towards improving Nigeria’s tax administration and creating a more predictable environment for businesses.
