FG to Introduce New Regulations Against Illegal Taxes

The Federal Government of Nigeria is set to implement new regulations aimed at curbing illegal taxes imposed by states and local governments. Minister of Finance Taiwo Oyedele disclosed during an interview that tax harmonization is a major priority for the current administration.

The Nigerian Tax Act and the Nigerian Tax Administration Act will take effect on January 1, 2026, focusing on aligning subnational governments with federal tax efforts. The government has engaged with state governments to adopt laws that eliminate unauthorized levies and improve transparency in tax collection.

Currently, 15 states have enacted the required laws, with ongoing engagement with remaining states. Oyedele further stated that the government plans to enhance access to fiscal data and strengthen public financial management.

President Bola Tinubu signed four major tax reform bills into law in June 2025, as part of efforts to restructure Nigeria's fiscal revenue administration framework. The reforms aim to modernize tax administration and create a predictable business environment.