Nigeria Begins Major Revenue Reform as FIRS Transitions to Nigeria Revenue Service

Nigeria is set to implement a sweeping reform of its revenue administration framework following the transition of the Federal Inland Revenue Service (FIRS) into the newly created Nigeria Revenue Service (NRS)—a move described as a turning point in the country’s approach to public finance management.

The transformation follows the signing of landmark tax and revenue reform laws by President Bola Ahmed Tinubu, aimed at strengthening transparency, accountability, and economic development across the federation.

Speaking on the reforms, Arabinrin Aderonke Atoyebi, Technical Assistant to the FIRS Executive Chairman, Dr. Zacch Adedeji, described the transition as more than a name change, stressing that it represents a fundamental shift in how Nigeria manages its revenue streams.

According to her, the establishment of the NRS responds directly to public demands for better governance, improved oversight, and a more accountable revenue system.

“This move marks a change in how the country manages revenue,” Atoyebi explained.

The overhaul is backed by four major laws enacted on June 26, 2025, which collectively replace the former FIRS Act and expand the scope of federal revenue administration. The laws include: Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Act, 2025, Joint Revenue Board (Establishment) Bill.

Together, these legislations provide a comprehensive framework for modernising Nigeria’s tax and revenue collection system.

Under its new mandate, the Nigeria Revenue Service will oversee both tax and non-tax revenues, integrating its operations with other government revenue-generating agencies.

This unified approach is expected to improve coordination across departments, enhance transparency, and strengthen oversight of funds flowing into the Federation Account.

A key focus of the reforms is improving the experience for businesses and individual taxpayers. Atoyebi noted that the new system will simplify registration, filing, and payment processes, reducing bureaucracy and eliminating the need for repeated visits to multiple government offices.

“Registration, filing, and payment will be straight to the point,” she said.
The streamlined system is expected to support better financial planning for businesses and improve service delivery nationwide.

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Addressing concerns around data security, Atoyebi emphasized that the new laws contain strong provisions to protect taxpayer information and ensure confidentiality.

“Confidentiality is clearly protected,” she assured, adding that safeguarding personal data is critical to building public confidence in the reformed revenue system.

As Nigeria prepares for 2026, the establishment of the NRS is being viewed as a cornerstone of broader economic reforms aimed at creating a more reliable, transparent, and accountable revenue structure.

“2026 is no longer just another year,” Atoyebi concluded. “It marks the beginning of a revenue era built on trust, accountability, and progress for every Nigerian.”