FEDERAL INLAND REVENUE SERVICE (ESTABLISHMENT) ACT, 2007
Act · Finance
Policy date: 2007-01-01
An Act establishes the Federal Inland Revenue Service as an autonomous body for assessing and collecting taxes. It targets all taxpayers including companies and individuals. This ensures efficient tax administration to fund government operations.
FEDERAL INLAND REVENUE SERVICE (ESTABLISHMENT) ACT, 2007
What Is This Policy?
An Act establishing the Federal Inland Revenue Service (FIRS) as an autonomous statutory body responsible for assessing, collecting, and accounting for all taxes specified in the First Schedule to the Act.
Who Does It Target?
All taxpayers: companies, individuals, and trusts FIRS management and staff Federal Ministry of Finance as the supervising ministry Tax practitioners and consultants
What Does It Aim to Achieve?
Create an independent, professionally managed federal tax administration agency capable of efficiently collecting taxes to fund government, with clear powers and institutional safeguards.
Key Features
FIRS Autonomy: FIRS operates as an autonomous body with its own governing board, insulated from day-to-day government interference. Tax Administration Powers: Grants FIRS broad powers to assess, collect, enforce, and prosecute tax defaults. Revenue Mandate: FIRS administers Companies Income Tax, VAT, Petroleum Profits Tax, CGT, Stamp Duties, and other federal taxes. JTB Coordination: FIRS chairs the Joint Tax Board which coordinates federal and state tax administration.
Current Status
Rollout Stage: Active Coverage: Nationwide, all taxpayers under federal tax jurisdiction Beneficiaries: Nigerian public through government revenue; taxpayers through professional administration Funding: Percentage of collections retained for FIRS operational costs
How to Access
All companies and taxable individuals must register with FIRS and obtain a Tax Identification Number (TIN) File annual tax returns and pay taxes due Engage FIRS for rulings, objections, and disputes Application method: Register with FIRS at https://www.firs.gov.ng or any FIRS office.
Important Terms
TIN registration is mandatory for all companies Failure to file returns attracts penalties FIRS assessments may be challenged through the Tax Appeal Tribunal
Impact & Metrics
FIRS revenue collection grew from under N2 trillion to over N10 trillion annually since the 2007 establishment, funding critical government services.
Official Resources
Website: https://www.firs.gov.ng Contact: Federal Inland Revenue Service (FIRS)
Legal Framework
The Federal Inland Revenue Service (Establishment) Act 2007 is the primary legislation establishing FIRS as an autonomous tax authority. It operates alongside the Companies Income Tax Act, the Personal Income Tax Act, the Value Added Tax Act, and the Finance Acts (2019–2023). Constitutional authority derives from the Second Schedule of the 1999 Constitution (federal taxation powers). The Act aligned with IMF Revenue Administration recommendations and was superseded by the Nigeria Revenue Service (Establishment) Act 2025.