Kaduna State's Internally Generated Revenue has recorded sustained growth, propelled by aggressive deployment of technology, far-reaching tax reforms, and a deliberate push to bring more economic actors into the tax net, the Executive Chairman of the Kaduna State Internal Revenue Service has said.
The revenue boss, speaking in an interview, explained that the state's decision to digitise tax administration has eliminated several leakages that previously undermined collection efforts. Taxpayers can now register, file returns, and remit payments through online platforms, reducing human contact and the attendant opportunities for revenue diversion.
He noted that the automation of core processes—from taxpayer registration to receipt issuance—has boosted both compliance and public confidence. "Technology has been the backbone of our reforms," he said. "When people see that payments are acknowledged instantly and transparently, they are more willing to comply."
Beyond technology, the state has reviewed several tax laws to close loopholes and align local statutes with national tax policy. The reforms included harmonising levies, eliminating multiple taxation, and introducing clearer penalty regimes for defaulters. These changes, the revenue chief argued, have made the tax system more predictable for businesses while safeguarding government revenue.
On widening the tax net, he disclosed that the service has intensified taxpayer enumeration across the informal sector, capturing artisans, market traders, transport operators, and small-scale service providers who previously operated outside the system. A combination of field enumeration, data sharing with business registration agencies, and public enlightenment campaigns has helped bring tens of thousands of new taxpayers onto the register.
He acknowledged that enforcement remains a challenge but said the service is deploying a mix of incentives and sanctions. Compliance programmes targeting high-net-worth individuals and corporate entities have yielded significant recoveries, while public naming of chronic defaulters has exerted reputational pressure.
The revenue chief, however, stressed that the objective is not punitive. "We want voluntary compliance built on trust. When citizens see their taxes translating into roads, schools, and hospitals, the social contract is strengthened," he said.
Kaduna State has consistently ranked among the top sub-nationals by IGR performance outside Lagos and Rivers, driven largely by pay-as-you-earn collections, withholding tax, and land-related revenues. The state's medium-term target, the revenue boss indicated, is to reduce dependence on federal allocations and fund a larger share of the budget from internally generated sources.
He called on other states to embrace technology-driven tax administration, warning that continued reliance on manual processes would erode revenue and undermine development objectives.