…Establishes Nigeria Revenue Service to replace FIRS
President Bola Tinubu has signed into law four major tax reform Bills aimed at overhauling Nigeria’s fiscal and revenue framework, including legislation that formally transforms the Federal Inland Revenue Service, (FIRS) into the Nigeria Revenue Service, (NRS).
The Bills — Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill — were signed during a ceremony held yesterday at the Presidential Villa in Abuja.
The reforms followed months of legislative work and wide-ranging consultations with stakeholders across sectors. The signing was witnessed by key government officials, including the Senate President, Speaker of the House of Representatives, leaders of both chambers, Nigerian Governors’ Forum (NGF) Chairman AbdulRahman Abdulrazaq, Progressives Governors Forum Chairman Hope Uzodinma, Minister of Finance Wale Edun, and Attorney-General of the Federation (AGF) Lateef Fagbemi, (SAN).
According to the Presidency, the new tax regime aims to consolidate Nigeria’s fragmented tax laws, reduce the multiplicity of taxes, and ease the burden of compliance for businesses and taxpayers. The changes are also expected to boost domestic and foreign investments by fostering a more predictable and business-friendly fiscal environment.
A key highlight of the reforms is the Nigeria Revenue Service (Establishment) Bill, which repeals the Federal Inland Revenue Service (Establishment) Act of 2007 and creates a more autonomous, performance-driven agency now known as the Nigeria Revenue Service (NRS).
Briefing newsmen at the State House, NRS Chairman, Zacch Adedeji said the new agency has been mandated to assess, collect, and account for all revenues accruable to the Federal Government. He noted that the new laws, including the name change from FIRS to NRS, will officially take effect from January 1, 2026.
Other key provisions in the reforms include the establishment of a unified legal and operational tax administration framework across all tiers of government, a formal governance structure for inter-agency revenue cooperation, and the creation of a Tax Appeal Tribunal and Office of the Tax Ombudsman for taxpayer redress.
“The new tax laws will significantly transform tax administration in the country, leading to increased revenue generation, improved business climate, and enhanced transparency and accountability,” said presidential spokesperson Bayo Onanuga.
