Twelve states of the federation have so far adopted and harmonised the new national tax laws with their respective state tax regimes, a major step toward full implementation of the landmark tax reform package signed into law by President Bola Ahmed Tinubu in late 2025.
The development was disclosed on Wednesday, February 11, 2026, during a joint briefing by the Nigeria Governors’ Forum (NGF), the National Economic Council (NEC), and the Presidential Fiscal Policy and Tax Reforms Committee, following the council’s monthly meeting presided over by Vice President Kashim Shettima.
States that have harmonised so far (as confirmed by NEC): Lagos, Rivers, Ogun, Oyo, Osun, Ondo, Ekiti, Kwara, Edo, Delta, Akwa Ibom and Anambra State.
The remaining 24 states and the FCT are at various stages of alignment, with some already passing state-level harmonisation bills and others still undergoing legislative review.
NEC’s Key Resolutions & Recommendations At the end of the session, the National Economic Council urged all state governments to accelerate the harmonisation process and prioritise three core areas in the utilisation of increased revenue from the reforms:
1.Investment in Human Capital — Massive funding for education, healthcare, vocational training, and youth skills development to build a productive workforce.
2.Infrastructure Development — Road rehabilitation, rural electrification, water supply, and digital connectivity to support economic growth.
3.Accountability & Transparency — Strict monitoring mechanisms, public disclosure of tax revenue utilisation, and citizen engagement to prevent diversion and build public trust.
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Vice President Kashim Shettima, who chairs NEC, said: “The tax reform is not about punishing citizens or states; it is about creating a fairer, more efficient system that generates resources for development. Twelve states have shown leadership by aligning quickly. We urge the others to follow suit so Nigeria can fully harness the benefits. The additional revenue must go into human capital and infrastructure — not recurrent expenditure or private pockets.”
Background on the Tax Reforms The four major tax bills (Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill) took effect on January 1, 2026. They aim to eliminate multiple taxation, exempt minimum wage earners from certain taxes, simplify compliance for SMEs, and boost revenue for both federal and state governments.
While the reforms have been welcomed by organised private sector groups and some state governments, they have faced resistance from labour unions and civil society organisations demanding a review over fears of increased hardship on low-income earners.
By Ogungbayi Beedee Adeyemi
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