The Chairman of the Ondo State Internal Revenue Service (ODIRS) Mr Bayo Rojugbokan has affirmed the state’s commitment to implementing Nigeria’s new tax reforms, describing the framework as a transformative step that will significantly boost revenue efficiency, strengthen compliance and reduce leakages across the tax system.
He stated this at the 2025 Akure Bankers’ Committee Annual Dinner, held at Delola event Place, Alagbaka Akure which brought together key players from the banking sector, government, industry and academia.
The event also featured a presentation of Award of Quality Service delivery and good performance to the State Chairman of ODIRS, Mr Bayo Rojugbokan, by the Akure Bankers’ Committee.
Delivering a keynote address on “Taxation, Innovation, and Inclusion: Redefining Nigeria’s Financial Ecosystem”, the ODIRS Chairman said the reforms, anchored on harmonisation, technology, and expanded collaboration with financial institutions, mark a decisive shift from traditional, reactive tax processes to a modern data-driven approach capable of improving collection by up to 30 percent.
He said “Tax reform is just a way of modernising our taxation. It is a right of the people. And it can mean that individuals will reduce the number of taxes in Nigeria in 2021. And the number of taxes divided between predominators, all kinds of taxes, is reduced to 9.
“Taxation is a contribution by individuals to the development of the state and to the nation. So, since we are doing it correctly, we shouldn’t be afraid about anything. Nothing new is coming. It’s just taxation. To ensure that there is transparency and accountability in the process.
“The number of taxes that we pay in Nigeria was too much. Now, we are reducing it to 9. And, of course, all the tax laws have been reduced to one particular document, which is the Nigerian Tax Authority Act”.
Rojugbokan emphasised that under the New Tax Administration Act (NTAA), banks are now at the heart of the compliance chain, serving as critical gatekeepers in identifying taxable persons, monitoring high-value transactions and sharing verified data with tax authorities.
According to him, the mandatory Tax Identification Number (TIN) verification policy taking effect on January 1, 2026, is one of the strongest tools for cleansing the tax environment.
From that date, no individual or business in the taxable category will be able to open or operate a bank account without a valid TIN.
“This new requirement is not to burden anyone but to streamline compliance, block loopholes and ensure that everyone who is supposed to be in the tax net is properly captured.”
He added that provisions under the Nigeria Tax Act (NTA), especially the requirement for banks to submit monthly reports on transactions above N5 million, will further curb revenue leakages and help detect unreported income, an area that has historically weakened tax mobilisation.
The ODIRS chairman also highlighted the challenges businesses face due to overlapping federal, state and local levies. He noted that the 2025 Tax Reform Acts introduce much-needed clarity by delineating tax powers and eliminating duplicated charges that often constitute harassment and drive up the cost of doing business.
“With harmonisation and digitisation, Ondo State will continue to align with national reforms to give taxpayers a seamless, transparent and predictable system,” he said.
He stressed that one of the major goals of the new framework is to reduce compliance costs for businesses by up to 40 percent through digital payments, the elimination of cash transactions and full integration of tax systems such as the State NRS hubs.
He noted that banks are expected to embed TIN verification into their core operations, while businesses are encouraged to embrace online remittance platforms for PAYE, stamp duties, withholding tax and other statutory payments.
“These reforms are designed to improve trust, simplify processes, and make compliance easier for citizens and businesses.”
Rojugbokan opined that the combined efforts of tax authorities, financial institutions and enforcement agencies such as the EFCC and NFIU have already begun to narrow Nigeria’s tax gap, and continued collaboration will position Ondo State and the country for sustainable economic growth.
In his welcome address, Chairman of the Committee and CBN Branch Controller, Mr. Aina Olumide, appreciated the Governor of Ondo State, Dr. Lucky Orimisan Aiyedatiwa for providing an enabling environment for banking operations.
He also commended security agencies for their continuous support in safeguarding financial institutions.
Aina further applauded member-banks for their yearly Corporate Social Responsibility initiatives, which have benefited the Police, Correctional Service centres, schools, leprosarium facilities, and children’s homes across the state.
Also speaking, the Chairman, Akure South Local Government, Hon. Gbenga Fasua commended the efforts of the Akure Bankers team for their achievements in improving tax and financial systems within the state.
According to him, taxation plays a critical role in driving infrastructural development, as clearly reflected in the ongoing projects across Akure and Ondo State.
He explained that improved tax administration has significantly enhanced development at the local government level, resulting in better services and a more vibrant economy. However, he expressed concern over the persistent issue of tax evasion among some residents.
The Chairman stressed that strengthening tax collection processes and enforcing penalties for evasion are necessary steps toward achieving financial stability and meeting the needs and expectations of the people.
He revealed that the Akure South Local Government is set to adopt an electronic tax collection system in 2026 as part of its strategy to boost revenue. Building on the gains of the current year, he said the transition to e-collection will help double and possibly triple existing revenue figures.
He urged residents to embrace compliance, warning that strict penalties await those who continue to evade taxes, as the government works toward a more efficient and accountable tax regime.
