The Federal Government announced its intention to introduce new regulations and implementation guidelines in the coming months to address the issue of illegal and multiple taxation imposed by state and local governments across Nigeria. This initiative is part of a broader effort to achieve tax harmonization, which has been identified as a key priority for the current administration.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during a recent interview. He explained that while the Nigerian Tax Act and the Nigerian Tax Administration Act became effective on January 1, 2026, their implementation has largely been at the federal level. Efforts are now shifting towards aligning these with subnational governments.

Oyedele highlighted that the government is actively engaging with state governments to encourage the adoption of laws that will eliminate unauthorized levies and enhance transparency in tax collection systems. He noted that 15 states have already enacted the necessary laws, and discussions are continuing with the remaining states.

“Some of the excessive tax burden and multiple taxes are at the local government and state levels. So 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,” Oyedele stated.

He further added, “In the coming months, we’re going to be issuing regulations and guidelines and orders to implement those reforms.” The Ministry of Finance views its role in collaboration and coordination as extending beyond federal organs to encompass subnational entities, a responsibility it is taking seriously.

The government's current focus is on implementing these reforms and refining them based on feedback from stakeholders. This initiative is part of broader tax reforms initiated in June 2025 when President Bola Tinubu signed four major tax reform bills into law. These include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. These reforms were preceded by extensive consultations with stakeholders and industry groups.