KIRS Unveils Ambitious Tax Reform Plan, Aims for N180 Billion Revenue by 2026
The Kano State Internal Revenue Service launched a comprehensive tax reform program aimed at generating N15 billion monthly by 2026, while introducing a fairer tax system that shields lower-income earners and simplifies compliance for businesses.
The ambitious plan, unveiled at a multi-sector stakeholder engagement on Tuesday represents a significant shift in revenue strategy for Nigeria’s most populous state.
Alhaji Muhammed Abba Aliyu, Executive Director of Compliance and Enforcement at KIRS, emphasized that The reforms come as Kano demonstrates remarkable revenue growth, having doubled its Internally Generated Revenue (IGR) in 2024 according to the National Bureau of Statistics .
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Alh Abba Aliyu however said The reforms comes after the representation of increase in IGR to the N74.77 billion recorded in 2024, which itself was a 100% improvement over 2023’s N37.39 billion collection
“With This reform agenda the KIRS is designed tax structure to balance revenue generation with social equity of individuals earning above N800,000 annually will be taxed, and however only on the surplus amount, effectively protecting lower-income residents from undue financial pressure ”he said
“the projection is anchored in a new tax framework being implemented in the state that is structured on fairness and efficiency” Alhamdulillah Muhammad added
Alhassan Usman, representing the Partnership for Agile Governance and Climate Engagement (PACE), highlighted the “transformative power of digital tax systems” during his presentation, urging residents to abandon cash-based interactions with revenue officers .
Usman said Kano State government acknowledges these reforms represent a significant shift but essential for building a stronger social contract between citizens and the state.
“This approach aims to streamline revenue collection while reinforcing the social contract between citizens and the state,” Aliyu stated during the stakeholder engagement .
Kano’s reforms mirror national-level tax initiatives, creating consistency for businesses operating across multiple jurisdictions.