Nigeria is set to introduce a new era in revenue administration as the Federal Inland Revenue Service (FIRS) transitions to the Nigeria Revenue Service (NRS) in January 2026. This change follows the signing of tax and revenue reforms by President Bola Ahmed Tinubu earlier this year. The reforms, which were approved through four major pieces of legislation, aim to bring about a structural shift in how the country collects, manages, and accounts for public revenue.
According to Arabinrin Aderonke Atoyebi, Technical Assistant to the Executive Chairman of FIRS, the transition marks a significant change in how the country manages revenue, responding to long-standing public calls for transparency, accountability, and economic growth. The new NRS will be responsible for all federal government revenue, including taxes and other non-tax sources, and will administer both tax and non-tax revenue, integrating its systems with those of other revenue-generating bodies.
The reforms are expected to strengthen coordination among government agencies and improve oversight of funds entering the Federation Account. The NRS will also provide a more streamlined experience for taxpayers and businesses, with simplified registration, filing, and payment processes, reducing the need for physical visits to multiple offices. Additionally, the reforms include provisions to strengthen data protection and confidentiality, giving citizens greater confidence that their information will remain secure.
The laws that form the legal backbone of the new NRS include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Act, 2025, and the Joint Revenue Board (Establishment) Bill. These laws redefine the scope of federal revenue administration and replace the former FIRS Act.
Atoyebi emphasized that the reforms go beyond rebranding, stating that the NRS will allow the government to “track what is collected, how it is collected, and where it goes.” This, she described as “the Nigeria we have all been asking for.” The changes are expected to help businesses plan better and improve service delivery to taxpayers.
As Nigeria approaches 2026, the shift from FIRS to NRS is widely seen as laying the foundation for a revenue system built on trust and accountability. The new era in revenue administration is expected to bring about significant improvements in the country’s revenue management, with a focus on transparency, accountability, and economic growth. With the introduction of the NRS, Nigeria is poised to enter a new phase in its revenue administration, one that is expected to have a positive impact on the country’s economy and its citizens.
