In Nigeria’s Federal Capital Territory, taxation is beginning to sound less like a demand — and more like a conversation.

Inside a stakeholder forum in Abuja, officials of the Federal Capital Territory Internal Revenue Service (FCT-IRS) met with businesses, professionals and public institutions to discuss the implementation of the new tax framework that took effect at the start of 2026. The gathering was not presented as a compliance briefing, but as a recalibration of how government and taxpayers relate to each other.

The theme, Harmonising Revenue Systems and Implementing New Tax Laws, reflected a broader intention: move away from fragmented collections and toward a predictable system people understand before they are asked to pay.

A Different Tone From Government

Acting Executive Chairman Michael Ango framed the moment as a structural shift rather than a routine reform.
According to him, the Service was not summoning taxpayers to remind them of obligations but inviting them to participate in shaping a workable fiscal environment for the capital city.

The emphasis was clear — revenue sustainability would come from cooperation, not intimidation.

In practical terms, officials argue that Abuja’s recent infrastructure expansion and improved security conditions were financed through internally generated revenue, reinforcing the idea that taxes are visible when properly managed.

The policy does not necessarily introduce heavier taxation.
Instead, it reorganises the system itself.

At the centre of the reform is digitisation. Manual processes — often slow, negotiable and inconsistent — are being replaced by automated platforms intended to standardise assessment and payment.

The goal is simple: fewer human bottlenecks, fewer disputes, and clearer obligations.

Another pillar is voluntary compliance. Authorities say education will precede enforcement, shifting the relationship from confrontation to understanding.

Perhaps most significant for businesses is harmonisation across Area Councils. Multiple levies, long a complaint among operators in the territory, are expected to reduce under a unified framework.

Director of Taxpayer Services Chinwe Ndu described clarity as the backbone of any functioning tax system. When taxpayers know what applies to them and why, resistance falls and participation rises.

Her argument reflects a widely observed economic principle — confusion breeds evasion, while predictability breeds compliance.

At the national level, revenue authorities see digital adoption as the path to improved government income without increasing tax rates. The success of the 2026 regime, officials say, depends largely on how well sub-national administrations integrate technology into their systems.

In other words, government is attempting to grow revenue not by charging more, but by collecting correctly.

For companies in Abuja, the emerging reality may involve fewer surprise levies but more traceable payments. Informal negotiations could give way to automated records; discretion to documentation.

The bargain being offered is straightforward: transparency in exchange for consistency.

If implemented effectively, taxation in the capital could gradually transform from a periodic encounter into a routine civic process — less visible, but more dependable.

Economic confidence often follows predictability.
When businesses can estimate their obligations without negotiation, compliance becomes less about pressure and more about planning — and that is usually when revenue systems begin to stabilise.