16 States Adopt Harmonised Tax Framework to Reduce Multiple Taxation
New Tax Framework Aims to Improve Business Climate Across 16 States
The Joint Revenue Board (JRB) has announced that 16 states have now adopted a harmonised tax framework designed to eliminate multiple taxation, standardise revenue administration and improve the ease of doing business across Nigeria.
The framework forms part of the Federal Government's wider tax reform programme and seeks to create a more transparent and efficient tax system by aligning tax administration across state and local governments. The reforms also prohibit unauthorised tax collection practices and promote digital revenue administration.
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Tax Reform Gains Momentum
The harmonised tax framework is intended to address longstanding concerns over multiple taxation, overlapping levies and inconsistent enforcement across different states.
According to the Joint Revenue Board, the model law outlaws cash collection and roadblocks for tax collection, while restricting tax assessment and revenue collection to authorised officers and accredited tax agents. It also allows local governments to delegate tax collection responsibilities to state authorities where appropriate, helping to streamline revenue administration and improve accountability.
The latest development builds on the Federal Government's broader tax reform agenda, which aims to create a more predictable fiscal environment and improve compliance through harmonised legislation across all tiers of government.
Implications for Property and Construction
For Nigeria's property and construction industry, a harmonised tax framework could reduce one of the key operational challenges facing developers—multiple taxation.
Real estate developers, contractors and construction firms often operate across several states and local government areas, where differing tax practices and overlapping levies can increase project costs and administrative complexity.
A more coordinated tax system could lower compliance costs, improve project planning and provide greater certainty for businesses investing in housing developments, commercial real estate and infrastructure projects.
The reforms may also improve the operating environment for companies involved in land development, building materials, engineering services and property management by reducing unnecessary tax disputes and creating clearer rules for tax administration.
Supporting Investment and Ease of Doing Business
A transparent and predictable tax system is widely regarded as an important factor in attracting domestic and foreign investment.
By reducing arbitrary levies and harmonising tax administration, the framework has the potential to improve Nigeria's competitiveness as an investment destination, particularly for sectors requiring significant long-term capital such as housing, industrial development and infrastructure.
Improved fiscal certainty may also encourage developers to expand projects into additional states where tax administration becomes more consistent and easier to navigate.
Wider Economic Impact
Beyond the property sector, the harmonised framework supports broader efforts to modernise Nigeria's tax administration.
The reforms are expected to strengthen revenue collection, improve transparency and reduce leakages while creating a more business-friendly environment for enterprises operating across multiple jurisdictions. These objectives align with the Federal Government's ongoing efforts to simplify tax compliance and support economic growth through institutional reforms.
Outlook
The adoption of the harmonised tax framework by 16 states represents another step in Nigeria's fiscal reform agenda. For the housing and real estate sector, the initiative could reduce compliance burdens, improve investment certainty and create a more predictable operating environment for developers and investors. As more states adopt the framework, the reforms may contribute to lower transaction costs and support long-term growth across Nigeria's property and construction industries.
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