FG Calls on States to Abolish Nuisance Taxes

The Federal Government has called on state governments, especially Ondo State, to scrap nuisance and illegal taxes through the implementation of the newly enacted tax reform laws and the adoption of a State Tax Harmonisation Law.

The appeal was made on Monday by the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Prof. Taiwo Oyedele, during a public lecture in Akure held as part of activities marking Ondo State’s 50th anniversary.

Oyedele noted that the Federal Government began implementing the new tax policy on January 1, 2026, and urged states to align their fiscal systems with the reforms. He said states should fully apply the new tax reform laws and establish a harmonised tax framework to address multiple and illegal taxation.

He added that Ondo State could also host the National Tax Ombud Office for the South-West to champion taxpayer rights and protection. According to him, the state could further strengthen accountability by introducing an annual Tax Accountability Report for taxpayers and developing a comprehensive tax and fiscal policy to guide revenue generation, spending and debt management.

Oyedele also emphasised the need to strengthen fiscal transparency at the local government level, urging councils to prepare economic development plans and publicly disclose their budgets and audited accounts. He said each local government should establish a dedicated portal on the state website to share long-term plans, annual budgets and financial statements.

Also speaking at the event, the Special Adviser to President Bola Tinubu on Energy, Mrs Olu Arowolo-Verheije, said the President remained committed to supporting Ondo State in unlocking its development potential. She highlighted several ongoing federal projects in the state, including sections of the Lagos–Calabar Coastal Highway, the Akure–Ore dual carriageway, the Akure–Ado Ekiti Road and the Federal University of Technology Teaching Hospital in Akure.

She also said the Ondo Deep Sea Port project at Araromi was progressing steadily, noting that Governor Lucky Aiyedatiwa had recently secured a revalidated licence for the port. When completed, she said, it is expected to become West Africa’s deepest seaport, with a natural draught of about 18 metres.

In his keynote address, Governor Lucky Aiyedatiwa said Ondo State had recorded steady progress across various sectors over the past five decades and expressed confidence in its future. He said the state’s development would be driven by economic diversification, technology and innovation, human capital development and strong institutions.

The governor highlighted projects such as the Sunshine Free Trade Zone, the Golden Ceramics Industrial Plant, the Ethanol Plant in Ore and the Ondo Deep Sea Port as evidence of the state’s commitment to industrialisation, job creation and attracting investment. He added that tourism was being repositioned as a key growth sector, while continued investment in education, skills acquisition and youth empowerment would remain central to the state’s development agenda.