By Nworisa Michael
The Kano State Government has announced a ban on the payment of taxes using cash or cheques, with effect from January 1, 2026, as part of measures to curb revenue leakages and strengthen transparency.
The decision was disclosed by Muhammad Abba Aliyu, Executive Director of Compliance and Enforcement at the Kano State Internal Revenue Service (KIRS), during a seminar organized by the Kano Chamber of Commerce, Mines, Industries and Agriculture (KACCIMA). The event focused on Nigeria’s new tax reform laws and strategies for compliance and sustainable business growth.
Aliyu revealed that the introduction of technology-driven revenue systems has significantly improved revenue collection in the state. According to him, one government agency recorded a jump in revenue from ₦50 million to ₦500 million after deploying digital tools, a development that informed the decision to eliminate cash and cheque payments.
He further explained that under the new tax framework, the Nigerian Revenue Service will replace the Federal Inland Revenue Service (FIRS) and assume responsibility for collecting taxes on behalf of the federal, state, and local governments.
Aliyu noted that individuals or businesses with a gross turnover of ₦100 million and fixed assets valued at ₦250 million fall within the taxable bracket, while companies registered under the Companies and Allied Matters Act (CAMA) with gross income of ₦50 million or less and assets not exceeding ₦250 million are classified as small-scale enterprises.
Speaking at the seminar, tax expert Professor Kabiru Isa Dandago emphasized that taxation plays a critical role in infrastructure development, economic stability, and reducing inequality. He attributed Nigerians’ negative perception of taxation to a persistent trust deficit between citizens and government.
Dandago urged Nigerians to embrace the new tax reforms, noting that tax-based economies in developed countries thrive because revenues are effectively utilized to regulate inflation and guide consumer and business behavior.
Meanwhile, KACCIMA President, Ambassador Usman Hassan Darma, represented by Hassan Yau, expressed concern over the low turnout of business owners at the workshop, describing it as unfortunate given that the discussions directly affect their operations.