Kaduna Updates Tax Laws to Meet Global Standards

The Kaduna State Government has announced a comprehensive update of its tax laws as part of efforts to align with international best practices and strengthen the state’s fiscal framework. The move, according to officials, is aimed at creating a transparent, efficient, and investor-friendly tax system that will boost internally generated revenue (IGR) while supporting sustainable development.

Governor Uba Sani, in a statement issued through his spokesperson, explained that the reforms were necessary to modernize Kaduna’s tax regime, eliminate outdated provisions, and ensure consistency with evolving global economic realities. He said the updated laws will help strike a balance between enhancing government revenues and reducing the burden on businesses and individuals.

“Our goal is to put Kaduna on a stronger fiscal footing while ensuring that taxation is fair, transparent, and supportive of economic growth. We want to encourage investments, create jobs, and strengthen the capacity of government to deliver quality public services. Updating our tax laws to meet global standards is a critical step in this journey,” the governor said.

The reforms are being spearheaded by the Kaduna State Internal Revenue Service (KADIRS), which has been working closely with legal experts, tax professionals, and key stakeholders. Executive Chairman of KADIRS, Dr. Jerry Adams, disclosed that the new tax framework would address key issues such as tax compliance, automation of collections, double taxation, and the need for clarity in the tax code.

He explained that modernizing the laws would make Kaduna more competitive as a destination for both local and foreign investments. “Investors always look at tax policies when deciding where to put their money. If the framework is ambiguous or outdated, it discourages investments. With this reform, Kaduna is signaling to the world that it is open for business and ready to operate at international standards,” Adams said.

The revised laws will incorporate digital solutions for tax collection, aligning with global trends toward e-governance and automation. This is expected to improve efficiency, reduce leakages, and enhance accountability in the state’s revenue system. Already, Kaduna has deployed electronic platforms to streamline tax payments, with taxpayers able to make remittances online and receive instant confirmations.

Civil society groups and business associations in the state have welcomed the initiative but urged the government to ensure that the reforms do not place excessive strain on small and medium-sized enterprises (SMEs). The Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA) said the new tax regime must reflect the realities faced by businesses still grappling with rising costs of production.

President of KADCCIMA, Binta Yahaya, emphasized the need for balance. “While we appreciate the government’s desire to modernize tax laws, it is important to ensure that the new framework does not discourage entrepreneurship. SMEs are the backbone of Kaduna’s economy, and they need supportive policies, not excessive taxes,” she said.

Tax consultants have also noted that Kaduna’s decision aligns with broader reforms being pursued across Nigeria to improve revenue mobilization. The federal government has recently intensified its push for tax reforms, with the Presidential Fiscal Policy and Tax Reforms Committee working on harmonizing taxes and eliminating multiplicity across states. Kaduna’s effort is therefore seen as complementary to national objectives.

According to analysts, aligning tax laws with international standards will also improve Kaduna’s standing with development partners, financial institutions, and credit rating agencies. Transparent and predictable tax systems are often prerequisites for securing international funding and support for infrastructure and social projects.

The reform process has also taken into account the need to improve public trust in the tax system. Dr. Adams noted that many taxpayers often complain about lack of clarity in how revenues are utilized. He assured that Kaduna would strengthen public accountability mechanisms to ensure that taxes collected are directly tied to visible projects in healthcare, education, road construction, and social services.

The reforms are not without challenges. Some stakeholders worry about the capacity of the state’s institutions to enforce compliance fairly and transparently. Others point to the risk of resistance from citizens who may perceive the changes as an attempt to increase the tax burden. However, officials have stressed that the reforms are primarily about modernization and fairness rather than introducing arbitrary increases.

In addition, the government has committed to sustained stakeholder engagement to ensure that the new tax framework is widely accepted. Public hearings, consultations, and workshops have already been held with professional bodies, trade unions, and community leaders. The inputs from these engagements are expected to shape the final framework before it is enacted into law.

Kaduna’s effort is part of a wider vision to diversify its revenue base beyond federal allocations. With growing pressure on the Federation Account due to declining oil revenues and rising national debt obligations, states are increasingly turning to internally generated revenue to sustain governance and development.

For Kaduna, the updated tax laws are expected to provide a reliable and sustainable source of funding for key infrastructure projects, social programs, and security operations. The government hopes that with stronger fiscal independence, it can accelerate development and reduce reliance on volatile federal allocations.

Observers believe that if successfully implemented, Kaduna’s reforms could serve as a model for other states in Nigeria seeking to modernize their tax systems. As global economic conditions continue to evolve, fiscal transparency, digital compliance, and fair taxation are seen as the cornerstones of sustainable development.

Ultimately, the success of Kaduna’s updated tax laws will depend on their ability to strike the right balance between raising revenues and supporting economic growth. With clear implementation, accountability, and strong stakeholder engagement, the reforms could place Kaduna on a path to greater fiscal sustainability and long-term prosperity.