Offenders Risk Jail Term As 21 States Adopt Law Cutting Multiple Taxations—JRB

 …Ban roadblock for collection

At least 21 states have adopted a model law that cuts multiple taxation and bans the collection of taxes and levies at roadblocks as offenders now risk a jail terms.

The executive secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, disclosed this at a media briefing on the board’s role in revenue administration and the early results of the new tax laws.

He said 21 states have passed the Harmonised Taxes and Levies law to tackle multiple taxation at the sub-national level, which he described as a major problem for businesses.

He said hundreds of taxes and levies collected by different authorities have been harmonised into nine.

The model law was developed with the Presidential Committee on Fiscal Policy and Tax Reform and sent to states for adoption.

According to him, the law brings clarity to the tax system and removes “multiple, inconsistent, confusing, and contradictory taxes and levies” that businesses face across states.

He explained that user charges cover items such as parking fees, signage and advertisement, public conveniences, sewage and establishment permits. Daily tickets cover market levies, animal trade tax, slaughter fees and transport tickets. The aim, he said, is for state and local government revenue authorities to work together instead of competing.

Adesokan said the law bans roadblocks for tax collection and the collection of cash on the roads. He said, “Anybody caught can go to jail.”

He said the board is working with the police to enforce the ban and rid transport corridors of non-state actors. He added that a national task force will be set up and extended to local government areas. Designated police officers will work with state revenue authorities.

The executive secretary linked the roadblocks to high living costs. He said illegal collectors of levies and sellers of tickets raise transport costs, which push up the price of food and other goods. He said the President is committed to ending the practice. “This is a national assignment,” he said, and asked the media to support the effort.

Responding to complaints from journalists about harassment on the roads, Adesokan said the board knows the problem exists. “We are working to fix it,” he said. He admitted that it may not be cleared completely soon. “These are practices that have been there for decades. They won’t go away in one day,” he said. He promised that the board would write to the revenue authorities concerned, including the one in the FCT, to act on the complaints.

Adesokan said the reforms are already producing results. He said returns from 23 states rose by 27 per cent between January and June this year compared with the same period last year. He put the figure at N2.2 trillion, up from N1.75 trillion in the first half of 2025.

He recalled the vision given to the reform committee by the President, which he described as “tax prosperity, not poverty”. He said, “Tax the fruit, not the seed.”

He said data from the 23 states show that about 92 per cent of income earners now pay low or zero income tax. He said the focus is on bringing in high net worth individuals who should pay more.

Under the new rules, he said, the first N800,000 of income is taxed at zero per cent, while the highest personal income tax rate is 25 per cent. He said this is the friendliest among the top 12 economies in Africa. By his comparison, Tanzania charges 30 per cent and Ghana 35 per cent.

He added that a person earning N20 million a year now saves more than N80,000 monthly, almost N1 million annually.

Adesokan said informal nano-businesses are exempt from income tax. He listed roadside food vendors, Uber drivers and tailors as examples. He said some sub-national authorities have issued exemption certificates to such businesses. According to him, the plan is not to go after those struggling to survive but those who can pay.

He urged Nigerians to be careful about levies. Anyone issued a demand notice asking for payment into a personal account should query it, he said. He said payments should only go to government accounts.

The JRB boss said the National Tax ID, created with the Nigerian Revenue Service, gives each taxpayer a single identity. He said legacy state taxpayers are being linked to it, so authorities in any state can confirm a person’s tax record. This, he said, will protect taxpayers from paying income tax twice.

Asked about states and the FCT that have not adopted the law, Adesokan said the Federal Capital Territory has yet to domesticate it. He said the bills must go through state assemblies. “It’s not by executive fiat,” he said. He added that last week’s National Economic Council meeting had urged states to speed up.

On a complaint about land charges on retirees in their own homes, he said many states exempt such people. He said he was surprised the FCT applies the same rule to everyone, and that the board would ask the authority to review the bye-law.

He stressed that the board does not collect taxes. “We don’t collect taxes at all,” he said. He explained that the JRB is a policy and harmonisation body, while the Nigerian Revenue Service and state authorities do the collection.

Adesokan said revenue officers will be trained and collection will go digital to improve accountability. He said Nigeria still needs more revenue. “Our deficit in infrastructure is huge,” he said. “I’m sure by this time next year, it will be better than where it is now.”