Generating revenue without new taxes — the Uba Sani way

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Generating revenue without new taxes — the Uba Sani way
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For a land locked state which is also non-oil producing, Kaduna State’s ranking as the seventh subnational in Internally Generated Revenue in 2023, is quite phenomenal. Recently, the National Bureau of Statistics released the IGR of all the 36 states and the Federal Capital Territory . In that report, Kaduna State raked in N62.

However, Kaduna state achieved this milestone through strategic reforms, leveraging effective governance, strategic tax reforms, and a renewed focus on transparency. Governor Sani’s leadership has not only enhanced the state’s revenue profile but has also made it a model of effective governance in Northern Nigeria.

In addition, a central factor in Kaduna State’s improved IGR is Governor Uba Sani’s commitment to fostering a favorable business environment. Businesses that once left Kaduna due to past challenges have returned, attracted by the administration’s pro-business policies. By prioritizing simplicity in the tax system, businesses face fewer barriers, which allows them to focus on expansion.

Likewise, expanding the tax net by targeting new taxpayers instead of increasing tax rates has been key to the state’s improved revenue collection. This horizontal tax expansion allows the government to capture revenue from previously untaxed or undertaxed sectors, broadening the base without placing an excessive burden on any single group. For example, there is a renewed drive on property taxes and ground rents.

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