Nigeria's Federal Inland Revenue Service (FIRS) concluded the 2025 fiscal year with unprecedented revenue generation, landmark legal reforms, and a deeper integration of technology, a combination that analysts confirm has fundamentally reshaped the nation's tax administration and set a new tone for 2026.
A Defining Year for Tax Administration
In a comprehensive year-end review, Arabinrin Aderonke Atoyebi described 2025 as a pivotal period for the agency under the leadership of its Executive Chairman, Dr. Zacch Adedeji. She emphasized that the reforms introduced moved beyond mere policy intentions to deliver measurable, concrete outcomes. The year was not solely defined by impressive headline figures but by the profound structural changes that promise a more predictable, efficient, and robust revenue system for Nigeria.
The cornerstone of this transformation was the signing of four major tax reform laws by President Bola Ahmed Tinubu. The most significant of these is the Nigeria Revenue Service Establishment Act, which formally transitions the FIRS into the Nigeria Revenue Service (NRS). This new legal framework grants the agency greater operational autonomy, expands its mandate to include non-tax revenue, and harmonizes tax laws that were previously fragmented and complex.
Atoyebi stated that these reforms signify a decisive shift toward a more organized and accountable tax system, one designed to support national economic growth while ensuring fairness for all taxpayers. The changes are also projected to reduce uncertainty for both businesses and individuals by clarifying procedures and strengthening the institutional foundation of revenue administration.
Record Collections and Non-Oil Revenue Surge
The sheer scale of the revenue surge powerfully underscores the impact of the ongoing reforms. Between January and August 2025, the agency collected a staggering ₦20.62 trillion, achieving 82% of its ₦25.2 trillion annual target. By the end of September, total collections had climbed to an impressive ₦22.59 trillion, with non-oil revenue contributing a significant and growing portion of this sum.
Over a broader two-year period from October 2023 to September 2025, total revenue collections reached ₦47.39 trillion. Atoyebi credited this outstanding performance to improved administrative processes, better policy alignment, and stronger enforcement mechanisms, all significantly supported by technological advancements. She noted that these numbers reflect a more disciplined and effective approach to tax administration nationwide.
Technology as the Engine for Compliance
Technology played a central and transformative role throughout the year. A key initiative was the introduction of a national electronic invoicing system for large taxpayers. This system mandates companies with an annual turnover of ₦5 billion and above to integrate their invoicing platforms, enabling real-time reporting and validation of transactions.
This digital leap provides the revenue service with clearer visibility into business activities while simultaneously helping companies meet their tax obligations more efficiently and accurately. By December 2025, numerous large firms were already transmitting invoices live through the platform, a move widely hailed as a major boost for compliance and transparency in the system.
Beyond systems and laws, the agency also placed significant emphasis on human capital development. It conducted competitive recruitment exercises and invested heavily in staff training, welfare, and capacity-building programs across the country. Atoyebi explained that this focus on human capital was deliberate, asserting that a better-trained and motivated workforce is critical to effectively managing modern tax tools and the agency's expanded responsibilities.
The Road Ahead: Full Implementation in 2026
The complete effects of these sweeping reforms are expected to become fully apparent from 1 January 2026, when the four new tax laws officially come into force. These include the Nigeria Tax Bill, the Nigeria Tax Administration Procedure Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Tax Board Establishment Bill.
Under this new regime, taxpayers can anticipate clearer procedures, faster services, and improved transparency. For the newly styled Nigeria Revenue Service, the laws provide the necessary tools for stronger monitoring, better utilization of technology, and more efficient revenue collection. Describing this moment as the dawn of a new era, Atoyebi concluded that the foundations laid over the past two years have positioned the revenue service for sustained progress and greater achievements in 2026 and beyond.
In related clarifications, the FIRS has addressed concerns regarding the new tax laws, specifically explaining that the debated 4% Development Levy on imported products is not an entirely new charge. Instead, it represents a consolidation of several pre-existing levies that businesses were already paying through separate streams. This clarification comes as the Nigeria Tax Act and the Nigeria Tax Administration Act continue to generate significant discussion across the country's economic landscape.
