Dr. Salihu EneheKGIRS urges lawmakers to adopt updated tax reforms ahead of 2026 implementation
The Kogi State Internal Revenue Service (KGIRS) has called on the State House of Assembly to domesticate the newly signed Nigeria Tax Act and Nigeria Tax Administration Act, describing the step as crucial for seamless implementation of the federal tax reforms within the state.
Speaking during an engagement meeting with lawmakers at the Assembly Complex in Lokoja, the Executive Chairman of KGIRS, Dr. Salihu Enehe, said the interaction had become necessary to equip legislators with a clear understanding of the new fiscal framework and its implications for the state’s revenue operations.
Dr. Enehe explained that the Nigeria Tax Act represents a unified system that consolidates several previously independent tax laws, aiming to eliminate multiple taxation and strengthen transparency across the national tax system. He commended President Bola Ahmed Tinubu for what he described as a bold and strategic reform, adding that the legislation was designed to introduce harmony, clarity, and fairness into tax administration at all levels of government.
Highlighting the transformative nature of the reforms, the KGIRS chairman noted that their implementation—scheduled to begin in January 2026—would improve transparency in tax administration, boost investor confidence, and significantly reduce avenues for tax evasion. He emphasized that the new laws present both opportunities and challenges, stressing that compliance would benefit individuals and businesses ready to align with the updated regulations.
According to him, four key laws were signed by the President on June 26: the Nigeria Tax Act, Nigeria Tax Administration Act, Joint Revenue Board Establishment Act, and Nigeria Revenue Service Establishment Act. Domestication of the first two at the state level, he said, would ensure equity in taxation by exempting low-income earners, reducing the burden on middle-income earners, and placing higher obligations on high-income individuals and corporate entities.
Under the revised framework, individuals earning less than N1.3 million annually will be exempt from tax, while those earning between N1.3 million and N3 million will benefit from reduced rates. Conversely, individuals and businesses with annual income above N3 million will be subject to higher taxes, consistent with the progressive nature of the reforms.
Supporting the call for prompt adoption, Barrister Henry Ojuola, a consultant with KGIRS and former lawmaker, advised the Assembly not to enact new state laws where unnecessary, noting that the existing federal Acts already provide adequate legal backing for implementation. He urged lawmakers to instead strengthen operational structures, especially the Tax Tribunal, by appointing individuals of unquestionable integrity and ensuring that tax officers exhibit honesty and professionalism.
In his remarks, the Chairman of the Assembly’s Committee on Finance, Hon. Akus Lawal, applauded the KGIRS leadership for initiating the engagement and deepening legislative understanding of the new tax regime. Representing Ankpa I Constituency, Lawal expressed confidence that with strengthened tax administration and proper implementation of the new laws, Kogi State could soon emerge as the third-highest revenue-generating state in Northern Nigeria—after Kano and Kaduna—and the leading state in the North-Central region.
He assured that lawmakers were now better informed and prepared to review the two tax laws once transmitted to the Assembly, with a view to taking appropriate legislative action.
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