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Nigeria’s Tax Overhaul: FIRS Transition to Nigeria Revenue Service (NRS) Begins Ahead of Jan 1 Launch

by NewsDen Publishers
December 9, 2025
in BUSINESS, NEWS, NIGERIA
0
Nigeria’s Tax Overhaul: FIRS Transition to Nigeria Revenue Service (NRS) Begins Ahead of Jan 1 Launch
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The Federal Government has commenced the full-scale restructuring of the Federal Inland Revenue Service (FIRS) as it transitions into the new Nigeria Revenue Service (NRS), multiple senior officials confirmed this weekend. The transition is in preparation for the NRS’s official launch on January 1, following the enactment of the comprehensive Nigeria Revenue Service (Establishment) Act, 2025.

​The Act, which repeals the 2007 FIRS Establishment Act, creates a modernized legal and institutional framework designed to unify and streamline national tax administration.

​Internal Restructuring Takes Immediate Effect

​FIRS officials involved in the process confirmed that the reorganization is progressing rapidly across all internal levels.

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​“The restructuring is going on well. We now have Executive Directors replacing those hitherto known and addressed as Coordinating Directors,” a staff member involved in the transition told reporters.

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​This change in hierarchy is mandated by the NRS Establishment Act. While some former Coordinating Directors have been retained and re-employed as Executive Directors, sources noted that others have been laid off, pending the release of the finalized organizational structure.

​Several departments and units are also undergoing consolidation and redesign to align with the new structure and broader scope prescribed by the 2025 Act.

​“From top to bottom, everyone at FIRS is ready and eagerly awaiting January 1 when we will be officially known as the Nigeria Revenue Service (NRS),” another official stated.

​Act Mandates Sweeping Reforms

​The NRS Establishment Act introduces fundamental changes aimed at creating a unified, technology-driven institution with enhanced powers to assess, collect, account for, and administer all revenues accruing to the Federal Government.

​Key provisions of the new law include:

  • ​Expanded Authority: Empowering the NRS to administer all federal revenue, review tax regimes in collaboration with relevant ministries, and strengthen compliance nationwide.
  • ​Anti-Evasion Measures: Equipping the Service with extensive authority to combat tax evasion and fraud, including determining financial losses, tracing illicit proceeds, and freezing or confiscating assets linked to tax offences.
  • ​Digital Integration: Allowing the deployment of digital systems for tax administration and the maintenance of a national database of taxable persons.
  • ​Inter-Agency Cooperation: Authorizing the NRS to exchange information with domestic and international agencies to boost enforcement.

​New Governance and Financial Autonomy

​The Act establishes a new Governing Board chaired by the Executive Chairman of the NRS. The board will include nine ex-officio members from key federal institutions and up to six non-ex-officio members representing the six geopolitical zones, all appointed by the President. It also introduces the position of Executive Directors—one from each geopolitical zone—to head major directorates.

​Financially, the NRS will be funded by four per cent of the total revenue collected (excluding petroleum royalties), subject to National Assembly appropriation. A measure of strict financial accountability is enforced, empowering the Accountant-General of the Federation to deduct unremitted revenues directly from the budgets of government institutions found to be in default.

​Significantly, the law imposes strict secrecy and confidentiality obligations on personnel, with severe penalties, including up to N5 million in fines or three years’ imprisonment, for unauthorized disclosure of taxpayer information.

​The transition provisions ensure legal and operational continuity, transferring all powers, assets, liabilities, staff, and ongoing activities of the FIRS directly to the NRS.

​The ongoing transformation is viewed as a landmark step toward establishing a modern, efficient, and robust revenue collection system for Nigeria.

​Do you need more details on the specific personnel changes or the financial provisions of the NRS Act?

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