Economy

The Nigeria Revenue Service (NRS) has officially commenced operations, replacing the former Federal Inland Revenue Service (FIRS) as the country’s new national tax authority. The transition follows the signing of the Nigeria Revenue Service Establishment Act 2025 by President Bola Ahmed Tinubu in June. The commencement of operations coincided with the beginning of the new year. The official launch was marked by the unveiling of the NRS logo and brand identity at an event held in Abuja, signalling a new phase in Nigeria’s revenue administration framework. Speaking on the development, the Executive Chairman of the NRS, Zacch Adedeji, described the rebranding as a major milestone in the ongoing efforts to modernise Nigeria’s revenue system. Read Also: Tax Reforms on Track as Tinubu Dismisses Suspension Rumours In a statement issued by his Special Adviser on Media, Dare Adekanmbi, Adedeji said the new identity reflects a renewed commitment to building a unified, efficient, and service-oriented revenue system aligned with Nigeria’s broader economic transformation agenda. He explained that the establishment of the NRS represents continuity of purpose, enhanced operational capacity, and a forward-looking approach aimed at supporting taxpayers while strengthening national development. Adedeji further reaffirmed the agency’s commitment to transparency, partnership, and service excellence, stressing that the NRS is focused on building public trust and promoting shared prosperity across the country.

President Bola Ahmed Tinubu has reaffirmed that the newly enacted tax laws will be implemented as scheduled, dismissing speculations about any suspension or reversal of the reforms. The President stated that the tax laws, which took effect on June 26, 2025, alongside other related Acts scheduled to commence on January 1, 2026, will proceed as planned. In a statement personally signed on Tuesday, Tinubu described the tax reforms as a once-in-a-generation opportunity to build a fair, competitive, and resilient fiscal foundation for Nigeria. According to him, the new laws are not designed to increase taxes but to support a comprehensive structural reset of the tax system, promote harmonisation, protect taxpayer dignity, and strengthen the social contract between the government and citizens. The President urged all stakeholders to support the implementation phase, noting that the reform agenda has now firmly entered the delivery stage. Read Also: FIRS Declares NIN as Automatic Tax ID for Individual Nigerians Tinubu Begins End-of-Year Break, Heads to Europe Kano APC Reiterates Unity, Ready to Receive Governor Yusuf He acknowledged ongoing public discourse over alleged changes to certain provisions of the laws but maintained that no substantial issues have been identified that would justify disrupting the reform process. Tinubu stressed that trust in governance is built over time through responsible decision-making rather than through premature or reactive measures, while reaffirming his administration’s commitment to due process and the integrity of laws already enacted. He further pledged that the Presidency would work closely with the National Assembly to ensure the timely resolution of any issues that may arise during implementation. The President assured Nigerians that the Federal Government would continue to act in the overriding public interest to establish a tax system that supports prosperity, equity, and shared responsibility.

Professionals, academics, civil society actors, and representatives of Small and Medium Enterprises (SMEs) in Kano have urged the Federal Government to suspend the implementation of the recently gazetted Nigeria Tax Administration Act (NTAA) 2025. The appeal followed a one-day stakeholders’ dialogue held at the Centre for Information Technology and Development (CITAD) on Sunday, 21 December 2025, in collaboration with the Association of Professional Bodies of Nigeria (APBN), Kano Chapter. The dialogue brought together tax administrators, economists, SME operators, and civil society actors to discuss the impact of the new tax law on small businesses, sub-national economies, and constitutional governance. While participants acknowledged that the NTAA aims to expand the tax net, simplify tax administration, and promote digital compliance, they warned that structural and procedural challenges such as weak public awareness, low SME digital readiness, and poor record-keeping could place undue burdens on small businesses. Stakeholders expressed serious concern over alleged discrepancies between the versions of the NTAA passed by the National Assembly and the gazetted version, the inclusion of punitive clauses, limited public consultation, and foreign technical partnerships that may compromise Nigeria’s fiscal data sovereignty. In a communiqué delivered by Dr. Ahmad Muhammad Sarari and signed by representatives of Kano professional bodies, including Engr. YZ Yau, Dr. Muhammad Awwal Haruna, and Engr. Murtala Gara, participants called on the relevant authorities to suspend the implementation of the NTAA pending a comprehensive legislative review, ensure full constitutional scrutiny, protect national tax data from foreign access, remove punitive clauses, introduce SME-friendly incentives, and enhance capacity-building to encourage voluntary compliance. Read Also: Ex-FIRS Boss Calls for Cancellation of Gazetted Tax Law NNPCL Restores Escravos–Lagos Pipeline After December Explosion National Grid Restored After Nationwide Power Collapse Highlighting data protection concerns, Engr. Rabi’u Haruna warned that national tax information may have been exposed to foreign partners in violation of the Nigeria Data Protection Commission Act, which safeguards data privacy and ensures responsible handling of national data. The stakeholders further cautioned that implementing the contested tax laws without addressing these concerns could trigger litigation, constitutional challenges, and a loss of public trust in Nigeria’s tax system. They pledged continued collaboration with civil society organizations and SME associations to pursue lawful remedies should transparency and legislative integrity continue to be undermined.

The Federal Government has reaffirmed that the implementation of Nigeria’s new tax laws will commence on January 1, 2026, dismissing concerns over possible delays arising from allegations of alterations to the legislations. The assurance was given on Friday by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, after presenting an update on the tax reform Acts to President Bola Ahmed Tinubu at his Lagos residence. Oyedele was accompanied to the meeting by the Chairman of the Federal Inland Revenue Service, Mr. Zacchaeus Adedeji, and the Chairman of the National Tax Policy Implementation Committee, Mr. Joseph Tegbe. According to Oyedele, the Federal Government remains fully committed to the agreed implementation timeline, noting that two of the four tax reform laws have already taken effect. He explained that the Nigerian Revenue Service Establishment Act and the Joint Revenue Service Establishment Act commenced on June 26, 2025, while the remaining two, the Nigerian Tax Act and the Nigerian Tax Administration Act are scheduled to take effect on January 1, 2026. Read Also: FIRS Declares NIN as Automatic Tax ID for Individual Nigerians Ex-FIRS Boss Calls for Cancellation of Gazetted Tax Law FG Says Debris From US Airstrikes Fell in Kwara, Sokoto Communities Oyedele welcomed the intervention of the House of Representatives Ad-hoc Committee, which recently concluded its investigation into allegations of alterations to the tax reform bills, stating that the findings would not affect the implementation schedule. He stressed that the government would continue to work with the National Assembly if further actions were required but maintained that the rollout of the remaining laws would proceed as planned. Explaining the intent behind the reforms, Oyedele said the new tax regime was designed to ease the tax burden on Nigerians rather than generate immediate revenue for the government. He disclosed that under the reforms, about 98 per cent of workers would either pay no personal income tax or pay less, while approximately 97 per cent of small businesses would be exempt from corporate income tax, value-added tax, and withholding tax. Oyedele added that large businesses would also benefit from reduced tax obligations, describing the reforms as inclusive and pro-growth, aimed at promoting economic expansion and shared prosperity. He further noted that preparations for the reforms began in October 2024 when the bills were submitted to the National Assembly, adding that the period since presidential assent had been used for capacity building, system upgrades, and public sensitisation. According to him, the early commencement of two of the laws was intended to give institutions sufficient time to prepare for the establishment of new structures required for effective implementation. On revenue expectations, Oyedele reiterated that the reforms were not targeted at short-term revenue generation but were expected to boost government earnings organically through economic growth, improved compliance, and a broader tax base.

The immediate past Chairman of the Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami, has condemned the alleged unauthorised alteration of the recently passed Tax Administration Act, calling on the National Assembly to consider passing a resolution for the outright cancellation of the gazetted versions of the law. Nami also urged the executive arm of government to prevail on the FIRS to suspend the release of all regulations and information circulars already prepared under the disputed Act, warning that further implementation could worsen confusion and undermine confidence in the tax system. In a statement made available to journalists on Monday, the former FIRS boss said the alleged action by yet-to-be-identified individuals implies that the legislation passed by the National Assembly and assented to by the President differs from the version eventually gazetted. He recalled that a member of the House of Representatives, Abdussamad Dasuki (PDP, Sokoto), had during plenary last Wednesday raised concerns over discrepancies between the tax laws passed by the House and the copies later gazetted. Describing the development as unusual and regrettable, Nami called for a thorough, transparent investigation and the prosecution of all those found culpable. Read Also: FIRS Declares NIN as Automatic Tax ID for Individual Nigerians Tinubu Presents N58.47trn 2026 Budget to National Assembly One-Party State Allegations Baseless, APC Governors Tell Nigerians “The occurrence of this incident is not only unusual but also regrettable, and calls for a proper and unimpeded investigation, as well as the prosecution of the perpetrators. Those found culpable must be punished accordingly,” he said. The former FIRS chairman further advised the National Assembly to consider passing a resolution mandating its committee reviewing the alleged alterations to work jointly with the executive to ensure that the actual law passed by both chambers is correctly gazetted. Citing Sections 4 and 58 of the 1999 Constitution, Nami stressed that legislative powers reside exclusively with the National Assembly, adding that neither the executive nor any other individual has the constitutional authority to alter a bill after it has been passed. “Any post-passage alteration is ultra vires, unconstitutional, and void to the extent of the alteration. Such provisions are vulnerable to judicial invalidation, thereby creating legal and fiscal uncertainty,” he stated. Nami also expressed concern over calls for stakeholders’ consultations on what he described as a document that was “criminally and arbitrarily altered” by unknown persons, noting that such a move could further complicate the situation. However, he cautioned against discarding the entire body of the new tax laws, citing the extensive research, consultations, investments, and legislative work that have gone into the reforms since the process began in 2022. According to him, the most viable option is for stakeholders to stand with the National Assembly to safeguard the reforms and ensure their proper implementation by January 2026. “Our best option in this crisis time is to stand firm with the National Assembly to ensure that all efforts and resources invested in the tax reforms project are not wasted,” Nami said. He added that the new tax provisions are critical to blocking revenue leakages, generating funds for economic growth and development, servicing public debt, addressing budget deficits at all levels of government, supporting social welfare programmes, improving security, building world-class infrastructure, and attracting foreign direct investment. The statement further noted that several provisions in the new tax laws encourage governments to prioritise taxing prosperity rather than poverty, allowing small and medium-scale enterprises (SMEs) to grow, create jobs, and eventually become contributors to the tax system.

The Federal Inland Revenue Service (FIRS) has announced that the National Identification Number (NIN) issued by the National Identity Management Commission (NIMC) now automatically serves as a Tax Identification Number (Tax ID) for individual Nigerians. The declaration was made in a public awareness campaign on Nigeria’s new tax laws, posted by the FIRS on its official X (formerly Twitter) handle on Monday. According to the Service, registered businesses will also no longer require a separate Tax Identification Number, as their Corporate Affairs Commission (CAC) Registration (RC) number will automatically function as their Tax ID under the new tax system. The clarification comes amid growing public concerns over provisions in the new tax laws that mandate the use of a Tax ID for certain financial and economic transactions, including bank account operations. Explaining the policy, the FIRS stated that the Nigeria Tax Administration Act (NTAA), scheduled to come into force in January 2026, requires the use of a unified Tax ID for taxable transactions. The agency, however, stressed that the requirement is not entirely new, noting that it has existed since the Finance Act of 2019 but has now been strengthened under the NTAA. Read Also: Tinubu Presents N58.47trn 2026 Budget to National Assembly “The Tax ID unifies all TINs previously issued by the FIRS and State Internal Revenue Services into a single identifier,” the Service said. “For individuals, your NIN automatically serves as your Tax ID, while for registered companies, your CAC RC number is used. You do not need a physical card, as the Tax ID is a unique number directly linked to your identity.” The FIRS explained that the new system is designed to simplify taxpayer identification, reduce duplication, close loopholes for tax evasion, and promote fairness by ensuring that all individuals and entities earning taxable income contribute appropriately. With the new framework, all Nigerians who possess a NIN automatically have a Tax ID and can be brought into the tax net, provided they earn taxable income. According to data released by the National Identity Management Commission, about 123.9 million Nigerians had been issued NINs as of October 2025. The development has also eased fears that Nigerians would be required to undergo another registration process to obtain a Tax ID from 2026 in order to open or operate bank accounts. Meanwhile, the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, has previously clarified that the new tax laws do not mandate all bank account holders to obtain a Tax Identification Number before January 2026. Oyedele explained that Section 4 of the NTAA requires only taxable persons—defined as individuals or entities earning income through trade or other economic activities—to obtain a Tax ID. He added that individuals without taxable income, such as students and dependents, are exempt from the requirement. He further noted that since 2020, businesses and corporate bank accounts have already been required to provide a Tax Identification Number as part of banking and regulatory processes. (Nairametrics)