The Kaduna State Government has signed into law the “Kaduna State Tax (Consolidation) Law, 2025,” marking one of the most significant fiscal reforms in the state’s recent history.
Governor Senator Uba Sani appended his signature to the legislation just days after the Kaduna State House of Assembly passed it, which repealed the earlier Tax Codification and Consolidation Law No. 16 of 2020 and replaced it with this streamlined, unified framework.
For years, businesses and residents in Kaduna, like many parts of Nigeria, have grappled with a patchwork of multiple taxes, levies, and fees administered across various agencies.
This often led to double taxation, overlapping demands, administrative bottlenecks, and widespread complaints about opacity and high compliance costs. The new law tackles these issues head-on by consolidating scattered tax provisions into a single, comprehensive legal document.
State officials describe it as a “one-stop” framework that harmonizes various levies, eliminates duplication, removes outdated provisions, and makes the system far easier for both tax administrators and payers to navigate.
Speaker of the House, Yusuf Dahiru Liman, explained during the plenary that the legislation creates a well-structured code designed for clarity and simplicity. At the same time, the Chairman of the House Committee on Finance, Halliru Bello Dangana, noted that it addresses gaps and leakages in revenue administration.
The reform is expected to deliver immediate relief to entrepreneurs and corporate organizations. By simplifying payment processes and reducing administrative burdens, it aims to improve the state’s ranking in ease of doing business indices and make Kaduna more attractive to investors.
Kaduna State Internal Revenue Service (KADIRS) has been trending toward stronger collections, with projections of around ₦85 billion in internally generated revenue (IGR) for 2025, supported by monthly averages nearing ₦7 billion. Officials believe the consolidation will further accelerate this momentum through better compliance, transparency, and technology-driven administration.
Governor Sani’s administration has positioned the law as more than a revenue tool. Strengthened IGR will be channelled into critical infrastructure, social services, education, security, and other development priorities—aligning with the state’s broader push for fiscal discipline and sustainable growth.
This comes as Kaduna continues to emphasize participatory budgeting and targeted spending, as seen in recent appropriation bills that prioritize education and infrastructure.
The reform has drawn swift commendation from the Joint Revenue Board (JRB), the apex body coordinating revenue administration across Nigeria’s federal, state, and local tiers. In a statement issued shortly after the signing, the JRB hailed the law as a “bold and forward-thinking” initiative and a milestone in subnational tax administration.
The board specifically praised Governor Sani and the leadership of KADIRS for harmonizing multiple taxes into a unified system, which it said would help eliminate multiple taxation, boost compliance, and enhance overall transparency.
This endorsement carries weight, coming amid Nigeria’s ongoing national tax reforms introduced in 2025, which emphasize harmonization, autonomy for state revenue services, and alignment with federal laws like the Nigeria Tax Act.
Analysts see the Kaduna move as part of Governor Sani’s strategic efforts to modernize the state’s financial architecture since assuming office. It builds on earlier gains in IGR growth and signals a commitment to creating an investor-friendly environment without unduly burdening citizens.
However, success will hinge on effective implementation. Stakeholders will be watching how KADIRS rolls out the new regime—through taxpayer education, digital platforms, and enforcement that remains fair and non-harassing.
Plans are already underway for further alignment with national tax reforms before January 2026, indicating that this consolidation is not the end but a foundational step.
For ordinary residents and small business owners in Kaduna, the law promises lighter compliance headaches and fewer surprise levies. The government, it offers a pathway to more predictable and robust funding for development. If delivered as envisioned, this reform could serve as a model for other states navigating Nigeria’s evolving tax landscape.
The signing of the Kaduna State Tax (Consolidation) Law, 2025, underscores a clear message from the Sani administration: fiscal responsibility and economic pragmatism can go hand in hand to build a more prosperous state.
As implementation begins, the real test will be in the streets and boardrooms of Kaduna—where simpler taxes should translate into tangible growth and improved public services.
WHAT YOU SHOULD KNOW
The signing of the Kaduna State Tax (Consolidation) Law, 2025, by Governor Uba Sani represents a bold and practical step towards modernizing the state’s fiscal system.
This law consolidates multiple scattered taxes and levies into a single, simplified framework, effectively eliminating double taxation, reducing compliance burdens on residents and businesses, and creating a more transparent and investor-friendly environment.
If well implemented, it will boost internally generated revenue while easing the tax burden — a win for both the government and the people of Kaduna.
