Ekiti State has taken a landmark step in Nigeria’s ongoing fiscal reforms by becoming the first subnational government to domesticate the Nigeria Tax Administration Act (NTAA), reinforcing its commitment to modern, transparent, and efficient revenue administration. The move positions the state at the forefront of tax governance reform and signals a broader shift toward harmonised tax practices across the federation.
Governor Biodun Oyebanji formalised this transition on Wednesday with the signing into law of the Ekiti State Revenue Administration Law, 2025. The signing ceremony, held at the Executive Council Chamber in Ado-Ekiti, marked a double milestone for the state, as the governor also assented to the 2026 Appropriation Bill, tagged the “Budget of Sustainable Governance,” with a total size of N415.57 billion.
According to the state government, the newly enacted revenue law domesticated the NTAA at the subnational level, aligning Ekiti’s tax administration framework with national standards and ongoing federal tax reforms. By doing so, Ekiti has effectively set a template for other states seeking to streamline their tax systems, reduce leakages, and improve compliance.
Key highlights of the new revenue law
The Ekiti State Revenue Administration Law, 2025, repeals the Ekiti State Board of Internal Revenue Law of 2019, replacing it with a more robust and technology-driven framework. One of the most significant changes introduced by the law is the transition to a fully digital tax system. All tax payments, billing, and receipting processes in the state are now strictly electronic, eliminating cash-based transactions that have historically encouraged leakages and inefficiencies.
Under the new framework, the Ekiti State Internal Revenue Service (EKIRS) is established as the sole authority for revenue collection, effectively curbing the activities of unauthorised consultants and third-party collectors. This centralisation is expected to improve accountability and ensure that revenues due to the state flow directly into government coffers.
The law also empowers EKIRS with prosecutorial authority, allowing it to enforce compliance through administrative penalties and legal action against defaulters. In addition, Ekiti has adopted the harmonised list of taxes approved by the Joint Revenue Board, providing clarity and certainty for businesses operating within the state and reducing the risk of multiple taxation.
Speaking at the ceremony, Governor Oyebanji said the reforms were aimed at building trust between the government and taxpayers. “From today, Ekiti adopts a strictly electronic payment system. This will eradicate leakages and ensure that all payments go directly into the state’s coffers,” he stated, adding that transparency and fairness would remain central to the administration’s fiscal philosophy.
The Executive Secretary of the Joint Revenue Board, Segun Adesokan, commended Ekiti for fulfilling a commitment made during the Board’s retreat in Ikogosi last September. He described the move as historic, noting that Ekiti is the first state to domesticate the NTAA. Adesokan expressed optimism that other states would follow suit, paving the way for a more professional, autonomous, and efficient subnational revenue system nationwide.
The 2026 fiscal outlook
Alongside the tax reform, Governor Oyebanji also signed the 2026 budget into law. The N415.57 billion spending plan reflects a balanced fiscal strategy, with 53 per cent allocated to recurrent expenditure and 47 per cent dedicated to capital projects. According to the governor, the budget prioritises the completion of ongoing projects, while also strengthening critical sectors such as infrastructure and agriculture to drive inclusive growth.
He explained that the improved revenue administration framework would play a key role in funding development initiatives without placing undue burden on residents or businesses. The ceremony was attended by top state officials, including Deputy Governor Monisade Afuye and Speaker of the Ekiti State House of Assembly Adeoye Aribasoye, highlighting broad political support for the reforms.
What you should know
The Nigeria Tax Administration Act is a cornerstone of the Federal Government’s 2025 tax reform agenda. It introduces a unified procedural framework for tax assessment, collection, and enforcement across all tiers of government, replacing fragmented legacy laws. The Act is scheduled to take effect from January 2026.
Despite its objectives, some provisions of the NTAA have generated debate among stakeholders, particularly in emerging sectors. Players in the cryptocurrency industry, for instance, have raised concerns over proposed taxation of digital asset transactions. The Act introduces stringent compliance requirements for Virtual Asset Service Providers, including mandatory registration, extended KYC data retention, and compulsory reporting of large or suspicious transactions to tax authorities and the Nigerian Financial Intelligence Unit.
By domesticating the NTAA early, Ekiti State has not only aligned itself with national reforms but also sent a clear signal of its readiness to embrace modern tax governance and sustainable fiscal management.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
