Kaduna State Governor, Senator Dr. Uba Sani (CON), has stated the state's commitment to aligning with the Nigeria Tax Reform Act 2025 to boost revenue generation and promote fiscal equity.
The Governor made this declaration in his keynote address at the 5th Economic Intelligence Unit (EIU) Policy Dialogue on the new Act. He was represented by the Commissioner of Finance, Ibrahim Tanko Muhammad, who noted that the federal government has embarked on reforms to modernize the tax system, enhance revenue generation, and ensure equitable resource distribution.
The Commissioner outlined the state’s comprehensive policies on tax and non-tax revenues, which are designed to widen the revenue base, block leakages, and leverage technology to establish Kaduna as a model of fiscal excellence in Nigeria.
He disclosed that the state generated over N135 billion in Internally Generated Revenue (IGR) in 2023 and 2024 combined and is committed to increasing revenue without imposing new taxes or burdens on citizens.
Muhammad highlighted key policies to boost tax revenues, including the digitalization of tax administration, widening the tax net without increasing rates, stakeholder engagement, and capacity building. Regarding non-tax revenues, he stated that the state is enhancing fee collection systems and engaging in public-private partnerships to unlock value from state assets.
He urged stakeholders to collectively embrace the Nigeria Tax Reform Act 2025, acknowledging that the state faces challenges in mitigating potential revenue losses. He specifically cited increased allowances on the Personal Income Tax (PIT) that may reduce revenue for sub-national governments.
Earlier, in his welcome address, the Commissioner for the Planning and Budget Commission, Hon. Mukhtar Ahmed Monrovia, described the federal legislation as a "bold step forward" aimed at streamlining tax administration, enhancing revenue generation, and promoting fiscal equity across the nation.
However, Hon. Monrovia cautioned that the national reform—which consolidates over a dozen legacy laws and introduces features like the Minimum Effective Tax Rate (ETR) and revised Personal Income Tax (PIT) brackets—requires meticulous review at the sub-national level to ensure alignment with Kaduna State’s priorities.
“The dialogue comes at a timely juncture, as the Act represents a pivotal legislative development that necessitates careful scrutiny to ensure alignment with state-specific priorities and challenges,” he said.
The policy dialogue is expected to translate into actionable strategies to mitigate vulnerabilities while capitalizing on emerging opportunities presented by the sweeping national reforms. This will inform Kaduna’s implementation strategy, ensuring the state benefits from the new, unified tax regime without compromising its independent fiscal targets.
The Economic Intelligence Unit (EIU) of the Planning and Budget Commission is mandated to enhance policy formulation and governance by monitoring, forecasting, and analyzing key economic and fiscal indicators, thereby helping the state anticipate and mitigate economic shocks.
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