Rivers State Launches Bold Tax Reform to Boost Compliance and Business Growth
The Rivers State Government has unveiled a comprehensive tax reform initiative designed to increase compliance, adopt digital systems, and eliminate illegal tax collection practices, all with the goal of strengthening the state's business environment. This initiative was announced by Israel Egbunefu, Executive Chairman of the Rivers State Internal Revenue Service (RIRS), at the inaugural BusinessDay/RIRS Tax Breakfast Meeting held in Port Harcourt on Thursday, March 19, 2026.
Emphasis on Early Engagement and Strategic Planning
Egbunefu stressed that many Nigerian businesses delay engaging with the tax system, missing out on opportunities for proper planning and legal optimization. He stated, "Businesses that engage early with the tax system are better positioned for sustainability and profitability. The real advantage lies in early planning and understanding the opportunities the law provides." This approach aims to shift the perception of taxes from mere obligations to strategic tools for business growth.
Revenue Data and Economic Impact
Data from BudgIT shows that Rivers State generated approximately ₦300 billion in Internally Generated Revenue (IGR) in 2024, averaging ₦25 billion monthly—the highest among Niger Delta states. Updated figures remain limited, but Governor Siminalayi Fubara disclosed in 2025 that the state consistently records between ₦25 billion and ₦28 billion monthly, underscoring the impact of effective tax administration on economic growth.
Strict Actions Against Non-Compliance
Egbunefu warned that businesses attempting to underreport income or evade taxes will face strict action. The agency has strengthened its intelligence and monitoring systems to track such cases. "We have conducted extensive investigations that reveal critical information to identify underreporting," he said. He also addressed illegal tax collectors, or touts, emphasizing the government's commitment to eradicating harassment. "We are determined to remove those who harass taxpayers. If anyone approaches you illegally, report them to us immediately," he added.
Modernizing Tax Administration
Egbunefu outlined RIRS priorities to modernize tax administration, including creating a fair, technology-driven system that encourages voluntary compliance and builds public trust. He emphasized, "Our role is to ensure fairness, transparency, and a level playing field where compliant businesses can thrive." He added that continuous stakeholder engagement, such as forums like the BusinessDay tax breakfast, is essential to improving compliance.
Expert Insights on Tax Incentives
Speaking on "Leveraging Nigeria's Tax Laws to Enhance Profitability," John Ohaka of Rivers State University highlighted tax incentives businesses can leverage. He explained that these strategies can improve cash flow, reduce tax burdens, and boost overall business performance. This aligns with the reform's goal of supporting economic development through informed tax practices.
Building Trust and Supporting Development
Egbunefu emphasized that modern tax administration is about more than revenue—it is about building trust, fostering voluntary compliance, and supporting economic development. "Effective tax systems strengthen public trust, institutional credibility, and sustainable growth. Rivers State's future economic success depends on a strong, fair, and efficient tax system," he said.
Collaborative Efforts and Event Highlights
In his welcome address, Patrick Ijegbai of BusinessDay Media lauded RIRS leadership, calling the initiative timely and impactful. He noted that collaboration aims to deepen conversations on taxation and enhance understanding among businesses and residents in Rivers State. The event featured expert panel discussions from taxation and accounting professionals, offering insights into improving compliance and strengthening Nigeria's fiscal environment.
