Kaduna state, under the dynamic leadership of Governor Uba Sani, has made substantial strides towards strengthening its internal revenue generation (IGR). This effort comes at a crucial time when Nigeria’s economic landscape is challenging, with dwindling oil revenues and inflation impacting the national economy. Recognising that a vibrant state economy is essential for long term growth and development, Governor Sani and his administration have prioritised innovative revenue generation strategies to bolster Kaduna’s economy and reduce dependency on federal allocations.
In 2023, Kaduna crowned as the highest leading internally generated revenue state in the Northwest region. This achievement is no coincidence, as the state government has been consistently proactive in implementing policies and initiatives to enhance revenue collection, in order to maintain its leading position. At the helm of this effort is Mr. Jerry Adams, a seasoned tax administrator with vast experience in tax management. With his expertise, Kaduna is exploring numerous revenue boosting initiatives designed to maximize the state’s economic potential.
One of the notable strategies the state has employed is expanding the tax base by capturing more informal sector businesses. Kaduna’s economy includes many small and medium scale enterprises (SMEs), many of which previously operated outside the formal tax system. Including the introduction of an interactive voice response (IVR) taxpayer line, which streamlines communication between taxpayers and authorities, providing 24 hours accessibility and automated information retrieval. This effort aims to enhance taxpayer engagement and encourage voluntary compliance.
To address this, Governor Sani’s administration, under Adams’ guidance, has launched an extensive campaign to formalize the informal sector, thereby increasing the state’s revenue pool. This strategy has already led to an increase in tax registrations and a higher compliance rate among business owners.
Furthermore, KADIRS has conducted stakeholders meetings and collaborated with civil society organisations to promote taxpayer awareness and inclusiveness, particularly through tax clinics for market women. This initiative demonstrates the government’s willingness to bring the informal sector into the tax net.
In addition to expanding the tax base, the Kaduna State government has also reformed its tax administration system to enhance efficiency. By investing in modern technology, such as electronic tax filing and payment platforms, Kaduna is making it easier for businesses and individuals to fulfill their tax obligations. This modernization effort has reduced bureaucratic bottlenecks and improved transparency in the revenue collection process. Consequently, taxpayers in Kaduna are more confident that their contributions are being utilized effectively to promote the state’s development.
One area where Kaduna has focused its revenue generation efforts is property taxation. Through collaboration with local governments, the state has updated its property records and reassessed property values across urban and rural areas. These initiatives ensure accurate tax assessments, which have led to increased revenue from property taxes. Additionally, Kaduna has incentivised timely property tax payments by introducing a discount programme, rewarding taxpayers who meet deadlines.
Governor Sani’s administration has also capitalised on infrastructure investments as a revenue generating mechanism. By constructing modern marketplaces, industrial parks, and transportation hubs, Kaduna is attracting more businesses to the state. These developments contribute to job creation and economic activity while providing additional sources of tax revenue. The state’s infrastructure projects also include tolling mechanisms on major roads and bridges, which help the government collect more revenue from those who benefit directly from these facilities.
Tourism is another focus area for Kaduna’s revenue generation efforts. With sites like Kajuru Castle, the Kamuku National Park, and Nok Village, Kaduna State possesses unique attractions that draw both domestic and international visitors. Governor Sani’s administration is working to improve the tourism infrastructure and enhance the marketing of these sites. Increased tourism activity leads to more spending in local communities, generating revenue through hotel occupancy taxes, service taxes, and other tourism related fees.
Moreover, the state is leveraging partnerships with private sector organizations to improve IGR. Public private partnerships (PPPs) have enabled Kaduna to launch several revenue generating projects, particularly in agriculture, healthcare, and education. These partnerships attract private investments into critical sectors and provide the government with additional revenue streams through taxes and other fees. Such collaborations are key to diversifying the state’s revenue base and building a more sustainable economic foundation.
Kaduna’s approach to IGR also includes targeted efforts to reduce tax evasion. Mr. Adams has implemented measures to strengthen compliance and enforcement by employing tax inspectors, auditing businesses, and penalizing defaulters. Enhanced enforcement has deterred tax evasion, as businesses are now more likely to comply with tax regulations. The administration’s commitment to transparency has also reassured taxpayers that their contributions are directly funding the state’s growth.
Education campaigns have been crucial to Kaduna’s revenue initiatives, as the government seeks to inform residents about the importance of tax compliance. By engaging with community leaders, youth groups, and business associations, Kaduna state has fostered a culture of responsibility toward taxation. These campaigns emphasize that tax revenue directly funds public services like healthcare, education, and infrastructure, creating a shared sense of duty among residents.
To further stimulate IGR, Governor Sani’s administration has created a system of incentives to encourage compliance. For instance, businesses that comply with their tax obligations receive certifications that boost their reputation and grant them access to government contracts. Such incentives foster a positive relationship between taxpayers and the government, encouraging more individuals and businesses to comply voluntarily.
Recognizing the need to diversify revenue sources, Kaduna state has explored the agricultural sector’s potential. Agriculture, a major contributor to Kaduna’s economy, presents significant opportunities for revenue generation through export promotion. The government has worked with local farmers to boost production, improve quality standards, and establish markets for crops such as maize, ginger, and millet. By promoting agricultural exports, the state government is tapping into international markets to increase its revenue base.
Kaduna’s economic development strategy under Governor Sani emphasises sustainable revenue streams. As the state continues to diversify its economy, it is less susceptible to fluctuations in federal allocations. This focus on sustainability ensures that Kaduna can maintain and improve its public services, even during times of economic downturn. The state’s commitment to IGR is essential to realising Governor Sani’s vision for a resilient, self sufficient economy.
The progress made in IGR has had a tangible impact on the state’s economy. Increased revenue has enabled Kaduna to invest in critical sectors such as healthcare, education, and infrastructure. These investments improve residents’ quality of life and create an environment conducive to business growth. By using IGR to fund development projects, Governor Sani’s administration is building a foundation for long term economic stability and growth.
Kaduna state’s efforts to increase IGR under Governor Uba Sani have positioned Kaduna state as a reference point in revenue generation in the Northwest zone. With a robust strategy that includes expanding the tax base, improving compliance, and leveraging public private partnerships, Kaduna is setting a standard for other states to follow. The administration’s focus on sustainable revenue sources and its commitment to transparency have created an environment of trust and cooperation among residents and businesses. As Kaduna continues to grow, its success in IGR will undoubtedly serve as a model for economic resilience and innovation in Nigeria.
Jabir T Usman,
Sabon Gari Tudun Wada, Kaduna state
