Nigeria’s Federal Inland Revenue Service (FIRS) announced that the full impact of recent tax reforms will become evident on 1 January 2026, when four executive bills signed by President Bola Ahmed Tinubu take effect. The reforms are expected to boost the country’s revenue collection, which reached N22.59 trillion in 2025.
According to Arabinrin Aderonke Atoyebi, spokesperson for Executive Chairman Dr. Zacch Adedeji, the new framework gives the agency greater autonomy and an expanded mandate that includes non‑tax revenue and harmonises previously fragmented tax legislation. The signing of four major tax reform laws—among them the Nigeria Revenue Service (Establishment) Act—has transformed FIRS into the Nigeria Revenue Service (NRS). This shift should reduce ambiguity for businesses and individuals and strengthen the institutional foundation of revenue administration.
The reforms aim to create a more organised, accountable taxation system that supports economic growth while ensuring 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 the two‑year period from October 2023 to September 2025, total collections amounted to N47.39 trillion.
Technology played a prominent role in the agency’s operations during the year, contributing to the improved revenue collection. The new reform laws—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 provide clearer tax procedures, easier access to services, and greater transparency in revenue management. Starting 1 January 2026, Nigerians can expect faster processing of Tax Identification Numbers and tax‑clearance certificates.
The implementation of these reforms is anticipated to positively impact the country’s tax administration, making it more efficient and effective. As the reforms take effect, the Nigeria Revenue Service is expected to build on its achievements, further enhancing revenue collection and supporting economic growth.
Comments are closed for this story.