As 2025 draws to a close, a period of reflection reveals a transformative year for Nigeria's revenue collection system. The Federal Inland Revenue Service (FIRS), under the leadership of its Executive Chairman, Dr Zacch Adedeji, has transitioned from strategic planning to impactful execution, achieving unprecedented financial results.
Legislative Overhaul and Record-Breaking Revenue
The cornerstone of 2025's success was the signing of four major tax reform bills by President Bola Ahmed Tinubu. These laws fundamentally restructured the nation's revenue architecture. The most significant change is the Nigeria Revenue Service (Establishment) Act, which officially renames FIRS as the Nigeria Revenue Service (NRS). This grants the agency greater autonomy and a broader mandate that now includes non-tax revenue collection.
The other enacted bills—the Nigeria Tax Bill, the Nigeria Tax Administration Procedure Bill, and the Joint Tax Board Establishment Bill—work to harmonise previously fragmented tax laws. This provides much-needed clarity for both businesses and individual taxpayers, creating a more predictable and fair system designed to support economic growth.
The results of these reforms, combined with enhanced administrative efforts, are clear in the numbers. Between January and August 2025, the agency collected ₦20.62 trillion, achieving 82% of its annual target of ₦25.2 trillion. By September, total collections surged to ₦22.59 trillion, with non-oil revenue constituting a substantial portion. Over a two-year period from October 2023 to September 2025, cumulative revenue reached a staggering ₦47.39 trillion, marking a historic performance.
Technology as a Catalyst for Efficiency
A key driver behind this revenue surge has been the strategic adoption of technology. In 2025, FIRS launched a national electronic invoicing system targeting large taxpayers. Companies with an annual turnover of ₦5 billion or more began integrating with this platform, which enables the real-time electronic reporting and validation of invoices.
This system reduces manual errors, gives the revenue service clear visibility into business transactions, and provides a structured digital pathway for companies to fulfil their tax obligations. As of December 2025, numerous large firms had completed integration and were actively transmitting invoices live through the system.
Beyond taxpayer-facing tech, FIRS also focused internally on building a capable workforce. The agency conducted competitive and transparent recruitment processes while investing in staff development and welfare. This focus on human capital has created a more skilled and motivated team equipped to handle modern tax tools and the agency's expanded responsibilities across all state offices.
The Road Ahead: A New Era for NRS in 2026
The foundation laid in 2024 and 2025 sets the stage for a new chapter. On January 1, 2026, the four reform bills will take full effect, officially ushering the newly named Nigeria Revenue Service (NRS) into a modernised era. Nigerians can anticipate several tangible benefits:
- Clearer and more streamlined tax procedures.
- Easier access to services and faster processing of Tax Identification Numbers (TINs) and tax clearances.
- Improved transparency in how revenue is collected and managed.
For the agency, the reforms will enable more effective use of technology, stronger compliance monitoring, and ultimately, more efficient revenue collection. The vision and consistent execution under Dr Zacch Adedeji's leadership have positioned FIRS, soon to be NRS, for this critical transition.
The record-breaking revenue of 2025 is not an isolated success but a testament to sustained reform, technological integration, and strategic capacity building. As Nigeria looks toward 2026, the revenue service appears poised to deliver faster services, greater transparency, and a tax system that more effectively serves the nation's economic ambitions.
