The Senate Committee on States and Local Governments, led by Senator Binos Dauda Yaroe, hosted a two-day national summit from December 2–3, 2025, bringing together local government representatives and key stakeholders from across Nigeria. The goal was clear: address the major challenges facing local governance and chart a path toward stronger, more effective grassroots administration.
The summit focused on three major themes—taxation reforms, local government autonomy, and revenue sharing—each essential to improving service delivery and promoting development at the local level.
Key Takeaways from the Summit
1. Taxation Reforms
A major highlight was the Nigeria Tax Administration Act (NTAA) 2025, designed to modernize and streamline tax administration nationwide. The Act introduces:
- A unified national tax administration system
- Mandatory tax identification registration for citizens and businesses
- Full digitalization of tax filing and payments
These reforms aim to enhance compliance, reduce corruption, and improve accountability in the tax system.
2. Local Government Autonomy
With the Supreme Court’s ruling affirming full financial autonomy for local governments, the summit explored strategies for implementation. Participants discussed the challenges ahead and the need for effective structures to ensure local governments function as the fully recognized third tier of governance.
3. Revenue Sharing
The updated Value Added Tax (VAT) allocation formula was also reviewed. Under the new structure:
- Federal Government receives 10%
- State Governments receive 55%
- Local Governments receive 35%
