By Olawale Lamina
The Federal Government has kick started the transformation of the Federal Inland Revenue Service (FIRS), into the Nigeria Revenue Service (NRS) expected to be fully operational under the new identity come January 1, 2026
According to a report by The Nation, Senior officials of the FIRS confirmed that the process of transiting to the new nomenclature has begun, just after the passage of the Nigeria Revenue Service (Establishment) Act, 2025, which repeals the FIRS Establishment Act of 2007 and creates a new legal and institutional framework for national tax administration.
The Nation quoted a staff member involved in the process as saying that the reorganisation is progressing steadily at all levels of the institution. The official added that under the restructuring, the organization now has Executive Directors replacing those those used to be known as Coordinating Directors.
In the report, the official also informed that numerous departments and units are being redesigned to reflect the structure prescribed under the new law.
“Some departments and units are also being restructured and consolidated in accordance with the shape and form of the new tax laws. From top to bottom, everyone at FIRS is ready and eagerly awaiting January 1 when we will be officially known as the Nigeria Revenue Service (NRS),” the Nation quoted the FIRS staff as saying.
Related development around ongoing restructuring has it that, while some of the coordinating directors are re-employed as executive directors, others have been laid off. “They are still working on the structure. They will release the structure much later,” a source said.
Legal framework
The Nigeria Revenue Service (Establishment) Act, 2025, introduces sweeping reforms to Nigeria’s tax administration system. It creates a unified, modern, and technology-driven institution with broad powers to assess, collect, account for, and administer all revenues accruing to the Federal Government.
The Act applies across the country and empowers the NRS to assess taxable persons, enforce payment of taxes, administer all federal revenue, review tax regimes in collaboration with relevant ministries, and strengthen compliance through investigation and enforcement measures.
The law also equips the Service with the authority to combat tax evasion and fraud by determining financial losses, tracing illicit proceeds, and freezing or confiscating assets linked to tax offences. It allows the NRS to exchange information with domestic and international agencies, deploy digital systems for tax administration, maintain a national database of taxable persons, and carry out public awareness campaigns on tax compliance.
The Act provides for administrative support to states and local governments that request assistance in tax collection, as long as they have the constitutional mandate to collect such taxes. Any revenue collected on behalf of another authority must be remitted directly to that authority.
At the governance level, the Act establishes a new Governing Board chaired by the Executive Chairman of the NRS.
Organization Structure of the new institution:
The board comprises nine ex-officio members drawn from key federal institutions, as well as up to six members representing the six geopolitical zones, appointed by the President.
The Executive Chairman and non-ex-officio members will serve renewable four-year terms.
The Act also introduces the position of Executive Directors—one from each geopolitical zone—appointed by the President to head major directorates within the Service.
A Management Committee and a Technical Committee are also provided for, to support policy implementation and technical decision-making.
On financial provisions, the Service will be funded by four per cent of total revenue collected (excluding petroleum royalties), as appropriated by the National Assembly. The Act exempts the NRS from income taxes but mandates it to remit taxes deducted from others. It also empowers the Accountant-General of the Federation to deduct unremitted revenues directly from the budgets of government institutions found to be in default.
The new law contains strict secrecy and confidentiality obligations for personnel, with penalties of up to N5 million or three years’ imprisonment for unauthorised disclosure of taxpayer information.
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