Tinubu signs tax bill into law, NRS replaces FIRS

Nigeria has abolished the Federal Inland Revenue Service Act and replaced  it with the Nigeria Revenue Service (Establishment), NRS.

This development formed a major highlight of the new tax bill, which President Bola Tinubu signed into law on Thursday.

The four bills are the Nigeria Tax Bill, the Nigeria Tax Administration Bill; the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

The signed NRS bill is expected to transform Nigeria’s fiscal and revenue framework.

The bills had generated controversy from Nigerians especially the northern region when they were initially introduced. They  suspected that the bills would not protect the economic interest of the region.

Nevertheless, the bills were eventually passed by the National Assembly, following wide consultations with various interest groups and stakeholders.

Bayo Onanuga, President Tinubu’s spokesperson said the new tax laws will significantly transform tax administration in Nigeria and bring more revenue for the government as well as improve the business environment, and boost domestic and foreign investments.

“One of the four bills is the Nigeria Tax Bill (Ease of Doing Business), which aims to consolidate Nigeria’s fragmented tax laws into a harmonised statute,” Onanuga said in a statement.

“By reducing the multiplicity of taxes and eliminating duplication, the bill will enhance the ease of doing business, reduce taxpayer compliance burdens, and create a more predictable fiscal environment.

“The second bill, the Nigeria Tax Administration Bill, will establish a uniform legal and operational framework for tax administration across federal, state, and local governments.

“The Nigeria Revenue Service (Establishment) Bill, the third bill, repeals the current Federal Inland Revenue Service Act and creates a more autonomous and performance-driven national revenue agency, the Nigeria Revenue Service (NRS). It defines the NRS’s expanded mandate, including non-tax revenue collection, and lays out transparency, accountability, and efficiency mechanisms.

“The fourth bill is the Joint Revenue Board (Establishment) Bill. It provides for a formal governance structure to facilitate cooperation between revenue authorities at all levels of government. It introduces essential oversight mechanisms, including establishing a Tax Appeal Tribunal and an Office of the Tax Ombudsman.”