In a no-nonsense address delivered in Kano, the Executive Chairman of Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, laid bare the Federal Government’s new tax reform strategy — and make no mistake, this is not business as usual. He insists the reforms will give a serious jolt to Internally Generated Revenue (IGR) and strengthen economic muscles at the state and local government levels.
Reform Means Action, Not Talk
Speaking on Tuesday at the Northern Revenue Conference themed “Readiness, Reforms, and Digital Transformation”, Adedeji — speaking through Joint Tax Board (JTB) Secretary Mr. Adesokan Olusegun — spelled out what the FG intends: simplify tax processes, push voluntary compliance and build a fair, transparent tax system.
He emphasised that one of the game-changers is the recently signed Nigeria Tax Administration Act, 2025 (NTAA). According to the legislation, tax administration across Nigeria is to be transformed via clear roles, unified procedures, and digital tools. (KPMG)
What’s on the Table
- Harmonised tax identification: Adedeji emphasised that Tax Identification Numbers (TINs) will now be integrated — federal, state and local governments must all be on board. This is meant to weed out duplications and help real-time data sharing across tiers.
- Capacity building for states: FIRS has developed a “Tax Harmonisation and Evaluation Framework” and is rolling out training for state revenue authorities — this is aimed at lifting institutional efficiency across the board.
- Revenue agency autonomy: A direct appeal to state governors to grant their revenue agencies operational autonomy, as the law provides, so they can deliver on fairness and efficiency.
Why This Matters for Sub-National Economies
Adedeji stressed reforms aren’t just about boosting federal coffers (though they will); they’re very much about revving up the engines in states and local governments. He argued that by harmonising tax laws and reducing multiple layers of taxation, local revenue agencies can become more effective — and local governments can have stronger economic foundations.
He said JTB is actively working with states to align local tax laws with the NTAA to curb “multiple taxation”, a frequent complaint in many states. By reducing conflicting tax regimes, he argued, states can improve their IGR and rely less on federal allocation transfers.
Northern Nigeria Takes Note
At the same event, Zaid Abubakar, Chairman of the Kano State Internal Revenue Service (KIRS), described the conference as “marking a new phase in tax administration in Northern Nigeria”. He warned that the 2025 reforms demand precision, digital competence and leadership — “the era of guesswork is over”, he stated.
He encouraged participants to use the forum to exchange ideas, collaborate and embrace digital transformation. His tone: states either get on board or risk being left behind.
Context: A Broad Fiscal Overhaul
It’s worth noting that the NTAA is one element of a far wider tax reform push. On 26 June 2025, Bola Ahmed Tinubu signed into law four key bills — including the Nigeria Tax Act, 2025, the NTAA, the Nigeria Revenue Service (Establishment) Act, 2025 and the Joint Revenue Board Act, 2025 — that together amount to the most sweeping tax overhaul in Nigeria in decades. (PwC)
These are built to unify tax laws, streamline administration, broaden the tax base and make Nigeria’s tax system more investor-friendly. (NESG)
Risks & Realities
Despite all the bold talk, there are pockets of scepticism. Implementation remains the wild card. Even top-tier states may struggle to synchronise local tax laws, fully automate systems or give revenue agencies true autonomy. Also, while reforms aim to strengthen sub-national economies, some analysts warn that without capacity and infrastructure, states may not fully reap the benefits.
Timing is also important. The tax acts provide for implementation frameworks — for example, some provisions take effect from 1 January 2026. (EY)
Bottom Line
What Mr. Adedeji is saying is clear: the old ways of fragmented tax systems, overlapping mandates and badly coordinated agencies are being challenged. The FG intends to re-engineer the tax landscape — and states have a role to play, not just watch.
For states, the message from the FIRS boss is blunt: align your laws, digitise your systems, give your agencies autonomy — because the reform train is moving. And if you’re not on it, you might miss out.
As this unfolds, keep an eye on how state-level revenue agencies respond — their readiness, their reforms, their digital transformation will determine whether this tax overhaul really delivers on the promise of stronger sub-national economies.