Hello, sole collector

President Tinubu signed four tax reform bills, creating the Nigeria Revenue Service to unify federal tax collection from January 2026.

President Bola Tinubu has signed four tax reform bills into law, signalling Nigeria’s push towards modern economic growth and global investment. The new laws establish the Nigeria Revenue Service (NRS) as the sole collector of federally chargeable taxes, stripping agencies like the Nigeria Customs Service and Nigerian Upstream Petroleum Regulatory Commission of their tax collection roles. According to FIRS Chairman Zacch Adedeji, the laws — which include the Nigeria Tax (Fair Taxation) Law and Nigeria Revenue Service (Establishment) Law — will take effect from 1 January 2026, allowing a six-month transition period for planning and stakeholder alignment.

The reform of Nigeria’s tax system marks a pivotal moment for Nigeria's fiscal landscape. President Tinubu’s initiative aims to streamline and simplify the country's historically complex and fragmented taxation system, and we commend him for the reforms.

At the heart of these reforms is the establishment of the Nigeria Revenue Service (NRS) as the sole agency responsible for collecting all federally chargeable taxes. This crucial move strips revenue collection functions from agencies like the Nigeria Customs Service (NCS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), allowing them to focus on their core regulatory and enforcement roles. Theoretically, this realignment should plug leakages and reduce corruption by centralising collection and improving tax administration efficiency. Aligning with global trends of centralised tax collection also signals greater transparency, consistency, and predictability, potentially enhancing investor confidence and attracting more foreign investment. This strategic recalibration reflects President Tinubu’s broader economic philosophy, which favours strong central authority to consolidate revenue, reduce inefficiencies, and bolster Nigeria's fiscal base.

While the reform presents a compelling vision of modernisation, its implementation isn't without significant challenges. The six-month transition period, culminating on 1 January 2026, is critical. Agencies like the NCS and NUPRC derive funding and institutional leverage from their revenue collection roles. Stripping these powers may trigger turf battles, bureaucratic resistance, or coordination challenges if not managed carefully. The success of the reform also heavily depends on the NRS's ability to scale rapidly, both in manpower and technological infrastructure. It must quickly acquire deep, sector-specific expertise to oversee complex and leakage-prone sectors such as oil and gas and cross-border trade. There's also a delicate balance between necessary consolidation and excessive centralisation. States, already vocal about resource control and fiscal federalism, may view this development with scepticism, particularly if subnational revenue mobilisation continues to suffer from jurisdictional overlaps and poor coordination with federal structures.

The success of this reform hinges not merely on its legal enactment but on the political will and administrative finesse with which it's implemented. Whether this becomes a landmark in Nigeria’s fiscal transformation or another ambitious policy stalled by entrenched interests will be determined in the critical months ahead.