New Era for Taxation: FIRS Becomes Nigerian Revenue Service

President Bola Tinubu has signed four landmark tax reform bills into law, transforming the Federal Inland Revenue Service (FIRS) into the Nigeria Revenue Service (NRS). 

This change was announced on Thursday, by the FIRS Executive Chairman, Zacch Adedeji. The new reform aims to enhance revenue generation, increase efficiency, and streamline tax administration.

Addressing State House Correspondents, he explained, “Based on best practices globally, because when you have this kind of change, it takes time for all the stakeholders, participant operators, and even the regulator to change the system.

“So with the magnanimity of the National Assembly, Mr. President, the effective date will be January 1, 2026, by the special grace of Almighty God.”

Key Features of the Nigeria Revenue Service (NRS):

- Expanded Scope: The NRS will focus on non-tax collection, in addition to tax collection, to boost revenue generation.

- Increased Efficiency: The new service will have greater autonomy and administrative efficiency.

- Centralized Tax Administration: The NRS will be the sole agency responsible for collecting taxes and levies in Nigeria, eliminating multiple revenue-collecting agencies.

- Improved Taxpayer Experience: The NRS will have a centralized taxpayer registration system.

The Senate passed two landmark tax reform bills on May 7, 2025, paving the way for the establishment of the NRS. The bills are part of the Federal Government's efforts to overhaul the country's fiscal framework and enhance revenue generation.

With this development, Nigeria's tax landscape is expected to undergo significant changes, impacting businesses and individuals alike. The NRS will play a crucial role in implementing these changes and driving revenue growth for the country.

Adedeji further stressed the importance of launching the reforms at the start of a new calendar year, saying, “When you have this kind of change, it’s not what you do mid-year. Because if the application of the law is better, you start from the beginning of the year.

“So effective dates, by God’s grace, will be first of January 2026,” he added.

This timeline, Adedeji explained, allows for adequate sensitisation, planning, and harmonisation with government budgeting frameworks.