FG commences transition of FIRS into Nigeria revenue service

The Federal Government has commenced the full restructuring of the Federal Inland Revenue Service (FIRS) ahead of its official rebirth as the Nigeria Revenue Service (NRS) on January 1 2026.

Senior officials confirmed that the transition process—triggered by the passage of the Nigeria Revenue Service (Establishment) Act, 2025—is already underway. The new law repeals the FIRS Establishment Act of 2007 and creates a fresh legal and institutional framework for federal tax and revenue administration.

A staff member involved in the transition described the reorganisation as “steady and far-reaching,” noting that the once-familiar role of Coordinating Directors has now been replaced with Executive Directors, in line with the new structure.

“Several departments and units are being redesigned to align with the provisions of the NRS Act,” The Nation quoted the official as having said. “From top to bottom, everyone at FIRS is prepared and eagerly awaiting January 1, when we will formally become the Nigeria Revenue Service.”

Another senior source explained that the new nomenclature and hierarchy are mandated by the Act, which recognises only Executive Directors.

“They have already been engaged, but perhaps are waiting for the formal procedures at the National Assembly,” the source noted.

The restructuring has also led to varied outcomes for senior personnel. “Some coordinating directors have been re-engaged as executive directors; others have exited. The final structure will be released later,” the source added.

The NRS Establishment Act introduces major reforms aimed at modernising Nigeria’s tax ecosystem. It empowers the Service to assess, collect, administer, and account for all federal revenues, while collaborating with relevant ministries to review tax regimes. The Act also strengthens enforcement powers, including the ability to investigate tax evasion, trace illicit proceeds, and freeze or confiscate assets linked to tax offences.

The law authorises information exchange with domestic and international agencies, deployment of digital tax systems, and creation of a national database of taxable persons. It further mandates the NRS to support states and local governments in tax collection where constitutionally permissible, provided all revenues collected on their behalf are remitted directly to them.

At the governance level, the Act establishes a Governing Board chaired by the Executive Chairman of the NRS. The board will include nine ex-officio members from key federal institutions and up to six geopolitical-zone representatives appointed by the President. The Executive Chairman and non-ex-officio members will serve renewable four-year terms.

The Act also introduces Executive Directors from each geopolitical zone to oversee major directorates, supported by a Management Committee and a Technical Committee.

The NRS will be funded with four per cent of total revenue collected—excluding petroleum royalties—as approved by the National Assembly. While exempt from income tax, the Service must remit taxes deducted from others. The Act further empowers the Accountant-General of the Federation to deduct unremitted revenues directly from the budgets of defaulting government institutions.

Strict confidentiality rules also apply, with penalties of up to ₦5 million or three years’ imprisonment for improper disclosure of taxpayer information.

With restructuring now underway, staff members of the Service say they are preparing for a seamless takeoff of the NRS on January 1, marking a significant transformation in Nigeria’s tax and revenue administration framework.