Nigeria ushered in a transformative era in tax administration on January 1, 2026, as the Federal Inland Revenue Service officially transitioned into the Nigeria Revenue Service, marking the full implementation of the country’s comprehensive tax reforms.
The Nigeria Revenue Service (Establishment) Act 2025, signed into law by President Bola Tinubu in June 2025, established the NRS as a centralised, autonomous agency responsible for assessing, collecting, and accounting for a broader range of federal revenues, including both tax and select non-tax sources. This replaces the narrower mandate of the former FIRS, which primarily handled federal taxes.
Executive Chairman Zacch Adedeji unveiled the NRS’s new corporate identity in Abuja on December 31, 2025, describing it as a symbol of “continuity of purpose, strengthened institutional capacity, and a forward-looking approach.” According to a statement from his media adviser Dare Adekanmbi, the rebranding reflects a commitment to transparency, efficiency, and service excellence aligned with global best practices and Nigeria’s economic agenda.
A key target of the reforms is to elevate Nigeria’s tax-to-GDP ratio from the current 13.5 per cent—one of the lowest in Africa—to 18 per cent within three years, as outlined in the Presidential Fiscal Policy and Tax Reforms Committee’s framework.
To achieve this, the NRS plans intensive stakeholder engagement and grassroots mobilisation to counter widespread misinformation. The committee is collaborating with the National Orientation Agency to produce digital explainers and translate the new laws into major Nigerian languages. Consultations, ongoing since earlier in 2025, will involve diverse groups including traders, women, youths, people with disabilities, students, business leaders, multinational corporations, small and informal sector operators, fintech firms, professional bodies, and sectors such as telecommunications, real estate, transport, hospitality, oil and gas, and utilities.
Chairman of the Presidential Committee, Taiwo Oyedele, has repeatedly addressed public concerns, firmly denying claims that the government can directly debit bank accounts for taxes. Speaking at a media workshop and the 2025 Nigeria Media Merit Award ceremony, Oyedele described such rumours as “false, dangerous and capable of destabilising the economy.” He clarified that tax recovery requires due process, including assessment, notification, objection opportunities, and a court-ordered garnishee—emphasising that no agency, including the NRS or Central Bank of Nigeria, has unilateral power to withdraw funds.
Oyedele stressed that the reforms prioritise simplification, harmonisation of multiple taxes and levies, modernisation through technology, and removal of impediments to investment and growth. The philosophy, summarised as “Let everyone breathe,” focuses on taxing prosperity rather than poverty, shifting emphasis from production and investment to income and consumption while protecting low-income earners and small businesses.
Supported by international partners including the World Bank, IMF, and civil society organisations like BudgIT and Tax Justice & Governance Platform, the reforms aim to foster voluntary compliance by ensuring fair laws, transparent administration, and visible use of revenues for public good.
