…Implementation begins January 2026 as FIRS becomes Nigeria Revenue Service
President Bola Ahmed Tinubu has signed into law four new tax reform bills recently passed by the National Assembly, describing them as a bold step toward Nigeria’s economic prosperity.
At a signing ceremony held on Thursday at the Presidential Villa, Abuja, President Tinubu said the laws signal a major shift in the country’s fiscal direction and will play a critical role in driving reforms and opening up economic opportunities for Nigerians.
“What we did a few minutes ago is the way forward for our country’s prosperity. Leadership must help people take off, lead the way, and navigate every turn and twist. We must help them reach their destination. That is what we are doing,” the President said shortly after appending his signature to the bills.
The four bills signed into law are: the Nigeria Tax (Ease of Doing Business) Law, the Nigeria Tax Administration Law, the Nigeria Revenue Service (Establishment) Law, and the Joint Revenue Board (Establishment) Law.
Together, these laws aim to harmonise Nigeria’s tax structure, create a more efficient and technology-driven revenue system, and eliminate multiple taxation.
According to the President, “We are in transit; we have changed the roads, we have changed some of the misgivings, we have opened the doors to a new economy, business opportunities. We have shown the world that Nigeria is ready and open for business.”
The Nigeria Revenue Service (NRS), which replaces the Federal Inland Revenue Service (FIRS), will begin full operations under the new law from 1 January 2026.
Speaking to journalists after the signing, FIRS Chairman, Zacch Adedeji, said the delay in implementation is deliberate and strategic.
“Based on best practices globally, because when you have this kind of change, it takes time for all the stakeholders, participant operators, and even the regulator to change the system,” Adedeji explained.
“So, with the magnanimity of the National Assembly, Mr. President, the effective date will be January 1, 2026 by the special grace of Almighty God.”
He added, “When you have this kind of change, it’s not what you do mid-year, because, if the application of law is better, you start from the beginning of the year.”
Adedeji, who described the development as the happiest day of his life, said the laws are not aimed at increasing tax burdens but at simplifying and streamlining them.
“These reforms are about relieving people of multiple taxes, not about raising more taxes. There will be more money in the hands of ordinary Nigerians to take care of their daily needs,” he said.
Key features of the new tax regime include the removal of value-added tax (VAT) on essential services and goods such as food, medical services, education, and accommodation.
“Transparent incentive regime: The laws introduce clearer rules around tax incentives, aiming to eliminate wasteful exemptions and curb tax evasion,” explained Adedeji.
“Enhanced efficiency: The reforms empower the Nigeria Revenue Service with better technology and expanded authority to improve tax collection. Social contract revisited: The new laws redefine the relationship between the government and taxpayers, emphasising fairness and accountability.”
Also present at the ceremony was Mr Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, who praised the President for enabling the reforms without interference.
“History will remember you for good for transforming our country because you went for a fundamental reform,” he said.
On the legislative side, Senate President Godswill Akpabio applauded President Tinubu’s intellectual capacity and vision.
“We have always known that you are a thinker, that you are intellectually sound, and that you care for your country. You campaigned based on change for the country. This law would last for generations to come,” he said.
The President also had words of commendation for the National Assembly, noting that the journey was not an easy one.
“It was initially difficult, but not all roads will be easy in nation-building. What you have provided is leadership and courage in the face of mounting disputes. Nowhere in the world would tax reforms be easy,” Tinubu said.
House Committee on Finance Chairman James Faleke highlighted Tinubu’s leadership style as key to the successful passage of the laws.
“The President did not dictate; he asked questions and encouraged us to provide answers. He urged us to stay the course and support the government in implementing these reforms,” Faleke said.
Faleke also stated that the reforms will increase tax revenues at both the federal and state levels.
“By 2026, subnational governments should expect an increase in their tax rolls, thanks to these reforms and the use of technology,” he said.
Chairman of the Senate Committee on Finance, Sani Mohammed, acknowledged the tough process that led to the new laws, noting that the bills faced resistance at first.
“When the bill was introduced, it faced uproar, but through extensive consultations, we crafted laws that reflect Nigerians’ aspirations, protect the less privileged, and consider key sectors like oil and gas,” he said.
The Joint Revenue Board, now legally established, will also help coordinate tax administration between federal, state and local governments, promoting greater cooperation and reducing duplication.
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