Nigeria’s Federal Inland Revenue Service (FIRS) has announced that the full impact of recent tax reforms will become apparent from January 1, 2026, when four executive bills signed by President Bola Ahmed Tinubu take effect. The reforms are expected to enhance the country’s revenue collection, which reached N22.59 trillion in 2025. According to Arabinrin Aderonke Atoyebi, spokesperson for the Executive Chairman, Dr. Zacch Adedeji, the new framework grants the agency greater autonomy and an expanded mandate, covering non-tax revenue and harmonizing previously fragmented tax legislation.
The signing of four major tax reform laws, including the Nigeria Revenue Service (Establishment) Act, has transitioned FIRS into the Nigeria Revenue Service (NRS). This shift is expected to reduce ambiguity for businesses and individuals, strengthening the institutional foundation of revenue administration. The reforms aim to create a more organized, accountable system of taxation, supporting economic growth while maintaining fairness and predictability for taxpayers.
Between January and August 2025, FIRS collected N20.62 trillion, representing 82% of its annual target of N25.2 trillion. By September, total collections had risen to N22.59 trillion, with non-oil revenue accounting for a significant share. Over two years, from October 2023 to September 2025, total collections stood at N47.39 trillion. The use of technology played a prominent role in the agency’s operations during the year, contributing to the improved revenue collection.
The new reform laws, including the Nigeria Tax Bill, the Nigeria Tax Administration Procedure Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Tax Board Establishment Bill, are expected to bring clearer tax procedures, easier access to services, and improved transparency in revenue management. Nigerians can expect faster processing of Tax Identification Numbers and tax clearance certificates, starting from January 1, 2026. The implementation of these reforms is anticipated to have a positive impact on the country’s tax administration, making it more efficient and effective. As the reforms take effect, it is expected that the Nigeria Revenue Service will continue to build on its achievements, further enhancing the country’s revenue collection and economic growth.
