Rt. Hon. Speaker, Chairman, House Committee on Finance and Appropriation, Honorable Members of the Kwara State House of Assembly, and distinguished guests,

I stand before you today representing the Nigerian Bar Association (NBA), Ilorin Branch, to offer our professional perspective on the Kwara State Harmonised Taxes and Levies (Approved List for Collection) Bill, 2025.

The NBA identifies with the laudable objectives of this Bill, particularly the intent to simplify tax collection, enhance accountability through technology, and eliminate the menace of multiple taxation and illegal roadblocks that have long plagued our economic landscape. We especially commend the progressive step of prohibiting cash transactions in favour of electronic mediums, which will undoubtedly reduce leakages and ensure that revenue reaches the state and local government coffers as intended.

However, our primary duty as ministers in the temple of justice is to ensure that all state legislations remain within the hallowed bounds of the 1999 Constitution of the Federal Republic of Nigeria (as amended).

While Section 4(1) of the Bill correctly identifies the "relevant tax authority" as the only body permitted to assess or collect revenue, we observe potential constitutional conflicts regarding the specific items listed in the Schedule. Specifically, the Constitution vests the authority to assess and collect tenement rates, license fees for bicycles and carts, and the regulation of markets and slaughterhouses exclusively in the Local Government Councils. By designating the Kwara State Internal Revenue Service (KW-IRS) as the collecting authority or primary harmonizer for the items mentioned in the schedule such as item 3, (Tenement rate, Land Use Charge Property Tax), Item 7, (Harmonised Levies), Item 8, (User Charges) and Item 9, (Daily Ticketing), there is a risk of usurping the constitutional autonomy of our Local Government Councils. The NBA is concern of the structure of the schedule, particularly item 7 "Harmonised Levies" and item 9 "Daily Ticketing" which include shop fees, slaughter slab fees, and market levies.

It is observed that, the Bill provides an option in Section 4 (7) for a Local Government to authorise the State Internal Revenue Service to collect fees on its behalf based on agreed terms, but the Schedule as currently drafted often mandates KW-IRS involvement or shared collection as a default. In Item 9 under the schedule, for instance, the Bill directs the State Internal Revenue Service to collect market levies and transporter tickets and then share the revenue with Local Government. This mandatory centralisation could be viewed as a colourable attempt to override the direct constitutional mandate of the Local Government Revenue Committees.

To ensure this Law is robust and immune to judicial challenge, the NBA Ilorin Branch recommends that the language of the Bill be refined to explicitly protect the agency relationship between the State and Local Governments.

We suggest that for Items 3, 7, 8, and 9 under the schedule, the Law must clearly state that it is the responsibility of the Local Government to perform their constitutional duties to collect revenue as stipulated in the 1999 Constitution and such right should not be hijacked from them. If at all, such right is to be delegated to the KW-IRS, it must state clearly that, the KWIRS is to act only as an agent of the Local Government upon an express, written request or agreement by the respective Council and should be accountable to the concerned Local Government.

Furthermore, for the "Property Tax" listed in Item 3 of the schedule, the Law should clearly distinguish between state-owned land charges and the constitutionally protected tenement rates belonging to the Local Governments. We must ensure that "harmonisation" serves as a tool for efficiency, not as a mechanism for the centralisation of local powers.

In conclusion, the NBA Ilorin Branch supports the passage of this Bill, provided these constitutional adjustments are made to preserve the third tiers of government recognised by our Constitution. We believe that with these corrections, the Kwara State Harmonised Taxes and Levies Law 2025 will become a model for fiscal transparency and legal integrity in Nigeria.

We thank the House for this opportunity to contribute to the legislative process and remain available for further technical consultation.

SMH Kosemani Esq.
Chairman,
NBA Ilorin Branch