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Nairametrics
Home Economy

FG to issue fresh regulations to curb illegal taxes by states, LGAs

Israel Ojoko by Israel Ojoko
May 19, 2026
in Economy, Tax
Tax Reform Committee denies Oyedele admitted errors in new tax laws
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The Federal Government says it will introduce new regulations and implementation guidelines in the coming months to tackle illegal and multiple taxation imposed by state and local governments across the country.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed this during an interview on Channels Television, noting that tax harmonisation remains a major priority under the current administration.

Although the Nigerian Tax Act and the Nigerian Tax Administration Act took effect on January 1, 2026, implementation has largely been concentrated at the federal level, with efforts now shifting toward alignment with subnational governments.

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What they are saying 

Oyedele said the government was already engaging state governments to adopt laws that would eliminate unauthorised levies and improve transparency in tax collection systems.

  • “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. 
  • “In the coming months, we’re going to be issuing regulations and guidelines and orders to implement those reforms.” 

He disclosed that 15 states have already enacted the required laws, while engagements are ongoing with the remaining states.

  • “Our role in the Ministry of Finance around collaboration and coordination is not limited to organs and units within the federal government. It cuts across the subnational and that role, we’re taking it very seriously,” he added.

Oyedele further stated that the government’s current focus is on implementing the reforms and refining them based on stakeholder feedback.

Get up to speed

In June 2025, President Bola Tinubu signed four major tax reform bills into law as part of efforts to restructure Nigeria’s fiscal and revenue administration framework.

  • The laws include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.
  • The reforms followed months of consultations with stakeholders, industry groups, and regional representatives across the country.
  • The bills generated intense public debate and skepticism in several quarters before their eventual passage by the National Assembly.

Extensive consultations were later conducted to accommodate diverse views and strengthen public acceptance of the reforms.

The implementation of the reforms officially commenced on January 1, 2026.

More insights

Oyedele also said the Ministry of Finance plans to improve access to fiscal data and strengthen transparency in public finance management.

  • “One of the areas where we haven’t really done very well is in communication, transparency, and accountability, of just even in finding fiscal data. You go to the Ministry of Finance websites, and you really can’t find a lot of information there,” he said.

He added that Nigeria should become the primary source of its own economic data rather than relying heavily on international institutions.

  • “I have seen some of my colleagues in government reference the World Bank data about Nigeria. I said, no, it should be the other way around. The World Bank should be referencing us, not the other way.” 

Oyedele also noted that collaboration between the Ministry of Finance and the Central Bank of Nigeria had improved significantly under the current administration and would be institutionalised through stronger legal frameworks.

He said the government intends to continue fine-tuning the reforms through regulations, executive orders, and stakeholder engagement.

What you should know

The planned harmonisation guidelines are coming after the formal unveiling of the Office of the Tax Ombud’s digital case management portal, official website, and call centre aimed at protecting taxpayers and resolving disputes more efficiently.

  • The Office of the Tax Ombud is headed by John Nwabueze.
  • According to Nwabueze, the institution was established as an independent and impartial mechanism for addressing taxpayer complaints and disputes.
  • The office is also expected to promote voluntary compliance and improve confidence in Nigeria’s tax administration system.

The initiative forms part of broader efforts to modernise tax administration and improve accountability across the country.

The Federal Government says these reforms are designed to simplify tax administration, reduce leakages, and create a more predictable environment for businesses and taxpayers.


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Israel Ojoko

Israel Ojoko

Israel Ojoko is a dynamic journalist renowned for his in-depth coverage and insightful analysis on a diverse range of topics. With a keen eye for detail and a passion for storytelling, Israel has penned impactful articles on the economy, political developments, fintech, and cybersecurity, among many others. His dedication to uncovering the multifaceted narratives has established him as a trusted voice and influential figure in contemporary journalism.

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