In a bold move to modernize state finances, Governor Usman Ododo of Kogi State has signed groundbreaking tax reform legislation that promises to transform the region's economic landscape.

The governor has enacted two pivotal laws - the Kogi State Internal Revenue Service (Establishment) Law and the Kogi State Taxes and Levies (Approved List for Collection) Law - which align with federal tax reform initiatives signed by President Bola Tinubu on July 26, 2025.

These comprehensive reforms, effective January 1st, represent a strategic approach to improving state revenue collection while simultaneously protecting low-income residents. Notably, individuals earning less than N800,000 annually will be completely exempt from taxation, demonstrating the government's commitment to economic fairness.

Information Commissioner Kingsley Fanwo highlighted the multifaceted benefits of these laws, emphasizing that they are designed to "boost state revenue, enhance transparency, and promote economic growth." The digital transformation of tax administration will significantly reduce human interference and increase accountability.

Key innovations include simplified tax processes, reduced compliance costs, and a structured approach aimed at attracting more businesses to the state. By digitalizing tax systems, Kogi State is positioning itself as a forward-thinking administrative region committed to modernization and economic development.

The tax laws are not intended to increase tax burdens but to support a comprehensive structural reset. They aim to drive administrative harmonization and protect citizens' dignity while strengthening the social contract between government and residents.

With these progressive reforms, Kogi State is setting a powerful example of how strategic legislative changes can create a more transparent, efficient, and equitable financial ecosystem that benefits both government and citizens.