NATIONAL REVENUE SERVICE (ESTABLISHMENT ACT)

An Act establishes the Nigeria Revenue Service to collect taxes and revenues for the federal government. It targets taxpayers, including individuals and corporations, as well as government agencies required to remit funds. The act seeks to modernize tax administration and improve revenue efficiency.

What Is This Policy?

This law replaces the Federal Inland Revenue Service (FIRS) with the Nigeria Revenue Service (NRS) as the main body responsible for collecting taxes and other revenues for the Federal Government of Nigeria.

Who Does It Target?

The Act is directed at taxpayers across Nigeria, including individuals, corporations, and institutions. It also targets government agencies, mandating them to remit revenues through the NRS. Financial institutions, auditors, and tax consultants are stakeholders, as they interact directly with the Service.

What Does It Aim to Achieve?

The central objective of the Act is to modernize Nigeria’s tax administration and improve revenue collection efficiency. It seeks to reduce leakages, expand the tax base, and ensure accountability in revenue management. By strengthening enforcement and compliance, the Act aims to boost government revenue for national development.

Key Features

Establishment of Nigeria Revenue Service (NRS) as the apex tax authority. Functions: assessment, collection, and accounting for federal revenues. Governing Board: oversight and policy direction. Technical Committees: specialized support for tax administration. Delegation of powers: enabling efficient operations. Integration of digital systems: modernizing tax collection and compliance.

Current Status & Implementation

This act is in force, serving as the legal basis for the establishment and operation of the Nigeria Revenue Service.

Legal Framework

The Nigeria Revenue Service (Establishment) Act replaces the Federal Inland Revenue Service (Establishment) Act 2007 and operates alongside the Nigeria Tax Act 2025, which consolidates the tax statutes previously administered by FIRS. Constitutional authority derives from Section 15 of the Constitution (Second Schedule — Federal taxation powers). The Joint Revenue Board Act and the Tax Appeal Tribunal framework provide dispute resolution mechanisms.