Kogi State Governor Ahmed Usman Ododo has assented to two pivotal revenue bills, bringing the state in line with Nigeria’s sweeping federal tax reforms set to take full effect on January 1, 2026.
The laws, the Kogi State Internal Revenue Service (Establishment) Law, 2025 and the Kogi State Taxes and Levies (Approved List for Collection) Law, 2025, were signed alongside the state’s ₦820.49 billion 2026 budget on December 31, 2025.
These measures aim to modernise tax administration in Kogi, enhance internally generated revenue, and ensure compliance with the Nigeria Tax Act 2025 and related reforms signed by President Bola Tinubu in June 2025. Most provisions of the federal reforms, including the Nigeria Tax Act and Nigeria Tax Administration Act, commenced on January 1, 2026.
In a statement released on January 1, 2026, Kogi State Commissioner for Information, Kingsley Fanwo, highlighted the anticipated benefits. He noted that low-income earners with annual incomes below ₦800,000 are fully exempt from personal income tax under the aligned framework. Simplified processes and lower compliance costs are expected to make the state more attractive to businesses.
Fanwo added that digitalised tax systems would minimise human interference, boost accountability, and support broader economic growth. He stated that the move is expected to boost state revenue, enhance transparency, and promote economic growth.
The federal tax reforms, described by President Tinubu as a once-in-a-generation opportunity to create a fairer fiscal system, consolidate multiple existing laws into four key acts: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service (Establishment) Act, and Joint Revenue Board (Establishment) Act. Key reliefs include a complete personal income tax exemption for individuals earning ₦800,000 or less annually, progressive rates for higher earners up to 25 percent, and exemptions for small companies with turnover below specified thresholds.
Kogi’s domestication of these reforms follows months of preparation, including stakeholder engagements organised by the Kogi State Internal Revenue Service in December 2025. The state has repeatedly expressed its commitment to maximising the benefits of the new tax regime, with Governor Ododo commending the uniform national approach.
The signing also included other bills, such as the Kogi State Public Audit Law, 2025, underscoring the administration’s focus on fiscal discipline and transparency. The 2026 budget, themed around consolidation and sustainability, allocates significant resources to infrastructure and welfare, building on these revenue enhancements.
