The Kogi State Government has formally domesticated the Nigeria Tax Reform Acts following the signing into law of two key revenue bills by Governor Alhaji Ahmed Usman Ododo. The new tax laws will take effect from January 1, 2026.
The laws signed by the governor are the Kogi State Internal Revenue Service (Establishment) Law, 2025, and the Kogi State Taxes and Levies (Approved List for Collection) Law, 2025, both aimed at aligning the state’s revenue framework with the Federal Government’s ongoing tax reforms.
According to the state government, the domestication of the tax reforms is expected to significantly boost internally generated revenue, enhance transparency in tax administration, and stimulate economic growth across the state.
A major highlight of the new tax regime is the protection of low-income earners. Individuals earning below ₦800,000 annually have been exempted from paying personal income tax, a move designed to safeguard vulnerable citizens while promoting fairness in taxation.
The reforms are also expected to attract more investments into the state by simplifying tax processes, harmonising multiple levies, and reducing compliance costs for businesses. This, the government believes, will create a more business-friendly environment and encourage economic activities.In addition, the new laws introduce technology-driven tax administration, with increased reliance on digital platforms to reduce human interference, curb leakages, and promote accountability within the revenue system.
The Ododo administration stated that the objective of the tax reforms is not to increase the tax burden on citizens, but to support a structural reset, drive harmonisation of taxes and levies, and protect the dignity of taxpayers while ensuring sustainable revenue generation for development.
