Nigeria Revenue Service (Establishment) Act, 2025 – Top Takeaways

The Nigeria Revenue Service (Establishment) Act, 2025 creates a new, stronger framework for tax administration in Nigeria. It establishes the Nigeria Revenue Service (NRS) as the central authority responsible for assessing, collecting, and accounting for all federal revenues.

1. Establishment of the NRS

• The NRS is now a corporate body with the power to sue, be sued, acquire assets, and manage revenue functions nationwide.
• Its mandate includes assessing individuals, businesses, and corporations for tax, collecting revenues, and enforcing compliance.

2. Expanded Powers and Functions

• Investigates and combats tax fraud and evasion.
• Monitors international tax dynamics and collaborates with global agencies.
• Issues Taxpayer Identification Numbers (TINs) and maintains a centralized taxpayer database.
• Supports states and local governments in tax collection when requested.
• Reviews government tax policies and advises on reforms.

3. Governance and Structure

• A Governing Board oversees the NRS, chaired by an Executive Chairman appointed by the President.
• Members include representatives from key ministries, the Central Bank, Customs, and other agencies.
• Six additional members represent Nigeria’s geopolitical zones to ensure inclusivity.
• The Board sets policy, approves strategies, and supervises the agency’s performance.

4. Management and Staff

• The Executive Chairman serves as CEO and Accounting Officer.
• At least six Executive Directors oversee different directorates, ensuring nationwide balance.
• A Management Committee implements policies and supervises day-to-day operations.
• Staff enjoy pension rights, training opportunities, and capacity-building programs.

5. Financial Provisions

• The NRS is funded by 4% of total revenue collected (excluding petroleum royalties), plus grants, gifts, and other income.
• It can also borrow, accept gifts, and is exempt from paying income tax.
• Strict audit, reporting, and accountability requirements are in place.

6. Legal Protections and Confidentiality

• Confidentiality of taxpayer information is strongly protected.
• Staff and Board members are indemnified against liabilities when acting in good faith.
• Legal provisions restrict lawsuits against the Service without due notice.

7. Transition and Continuity

• The Act repeals the old FIRS law but transfers all its powers, staff, assets, and obligations to the new NRS.
• Ongoing cases, contracts, and regulations remain valid under the new framework.

Why It Matters

This Act marks a major reform in Nigeria’s revenue system. By strengthening the revenue authority, widening its investigative powers, and ensuring accountability, the NRS is positioned to improve tax compliance, reduce leakages, and boost government revenue for national development.