In a significant move toward fiscal federalism and economic modernization, Anambra and Zamfara states have officially begun the process of domesticating the Federal Government’s latest tax reforms. This alignment follows the signing of four landmark tax bills by President Bola Tinubu in mid-2025, which are set to redefine Nigeria’s revenue landscape from January 2026. By adopting these frameworks, the states aim to simplify tax administration, eliminate the menace of multi-layered taxation, and create a more transparent environment for businesses.
Anambra’s Tech-Driven Approach
In Anambra State, Governor Chukwuma Soludo’s administration has integrated the new reforms into its “Solution” agenda, focusing heavily on digitalization. The state has moved to harmonize its revenue collection systems to prevent the harassment of small business owners by unauthorized agents. Under the new regime, Anambra is prioritizing the use of Tax Identification Numbers (TINs) and digital payment platforms to ensure that every naira collected is accounted for in the state’s treasury.
State officials emphasize that the reform is not about increasing the tax rate, but rather widening the net. By aligning with the federal “zero-tax” threshold for low-income earners—those earning ₦800,000 or less annually—Anambra is positioning itself as a socially conscious state that protects its most vulnerable citizens while demanding accountability from high-net-worth individuals and large corporations.
Zamfara’s Drive for Fiscal Stability
For Zamfara State, the domestication of the tax laws is a critical step in reducing its heavy reliance on monthly Federal Account Allocation Committee (FAAC) disbursements. Governor Dauda Lawal’s administration has focused on creating a “citizen-friendly” tax environment to encourage voluntary compliance. The state is particularly interested in the VAT fiscalisation and e-invoicing aspects of the reform, which aim to plug leakages in the commercial sector.
In a region often hampered by security challenges, the Zamfara government is using the tax reform to signal to investors that the state is open for business and committed to the rule of law. By streamlining local government levies and consolidating them into a single, predictable framework, the state hopes to revitalize its local economy and fund essential infrastructure without placing an undue burden on residents.
National Implications
The move by Anambra and Zamfara is being watched closely by other states as a blueprint for sub-national fiscal reform. The federal Acts—specifically the Nigeria Tax Act and the Nigeria Revenue Service (Establishment) Act—were designed to fix a “chaotic” system where businesses were often hit by over 60 different levies.
By domesticating these laws, states are effectively joining a national movement toward a consumption-based tax model. This shift is expected to grant states more autonomy over their internal revenue while ensuring they benefit from the federal government’s enhanced digital enforcement tools.
Challenges and Outlook
Despite the optimism, challenges remain. Both states must invest heavily in public enlightenment to overcome deep-seated skepticism toward government spending. Furthermore, the transition to e-invoicing and digital reporting requires significant technological infrastructure, which may take time to fully implement in rural areas.
However, the consensus among economic analysts is that the proactive stance taken by Anambra and Zamfara will yield long-term benefits. As they align with the 2026 national takeoff date, these states are setting the stage for a more structured, predictable, and fair fiscal future for their citizens.
