Nigeria is set to embark on a landmark transformation of its public finance system as the Federal Inland Revenue Service (FIRS) officially becomes the Nigeria Revenue Service (NRS) starting in January 2026. This historic shift, enacted by President Bola Ahmed Tinubu, marks a fundamental overhaul of how government revenue is collected, managed, and accounted for across the nation.
The Legal Foundation for a New Revenue Era
The transition from FIRS to the NRS is not merely an administrative rebranding but a structural reform anchored in four pivotal pieces of legislation. These laws, signed by the President on 26 June 2025, provide the legal bedrock for the new agency. They are the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Act 2025, and the Joint Revenue Board Establishment Bill.
Together, these acts repeal the former FIRS Act and significantly expand the scope and authority of federal revenue administration. Tax expert and policy advocate Arabinrin Aderonke Atoyebi emphasized that this move represents "a change in how our country manages revenue," aligning collection efforts with Nigeria's broader economic growth objectives.
Beyond a Name Change: An Expanded Mandate
The creation of the NRS signifies a major expansion of responsibility. Unlike its predecessor, the new service will have oversight over all federal government revenue, encompassing both tax and non-tax sources. This consolidated mandate is designed to improve coordination among various revenue-generating agencies and strengthen the oversight of funds flowing into the Federation Account.
"This is not about giving the agency a new name," Atoyebi clarified. "The NRS now has responsibility for all federal government revenue." The reform aims to create a more cohesive and transparent financial ecosystem.
Integrated Systems and Stronger Oversight
A cornerstone of the new framework is the integration of the NRS's systems with other revenue bodies. This technological upgrade will enable the government to track collections in real-time, providing unprecedented visibility into what is collected, how it is gathered, and where the funds are ultimately allocated. Atoyebi described this development as a long-awaited step toward the accountable governance system that Nigerians have demanded.
Implications for Taxpayers and Businesses
For individuals and businesses, the reforms herald a simpler and more predictable tax experience. Processes for registration, filing, and payment are expected to be streamlined, reducing bureaucratic hurdles and the need for physical visits to multiple offices. "Registration, filing, and payment will be straight to the point," Atoyebi noted, adding that clearer procedures will aid business planning and improve overall compliance.
Furthermore, the new laws introduce strengthened data protection and confidentiality provisions, directly addressing a significant concern among taxpayers. Clear safeguards are embedded to ensure sensitive financial information remains secure.
Leadership and Collaborative Effort
The successful transition to the NRS is credited to a collective effort. Atoyebi praised the focused leadership of the Executive Chairman of FIRS, Dr. Zacch Adedeji, for streamlining systems and rebuilding institutional trust within two years. She also acknowledged the critical roles played by the Presidential Committee on Fiscal Policy and Tax Reforms led by Taiwo Oyedele, the National Assembly, tax professionals, and dedicated public servants.
This reform follows a year of significant achievement, with the FIRS reporting a record ₦22.59 trillion in revenue for 2025. As Nigeria looks toward 2026, the birth of the Nigeria Revenue Service is widely viewed as laying a new foundation for a revenue system built on trust, efficiency, and sustainable national progress.
