FIRS Scrapped as Tinubu Signs Landmark Tax Reform Bills to Modernize Fiscal System
In a major milestone for Nigeria’s economic reform agenda, President Bola Ahmed Tinubu on Thursday signed into law four transformative tax reform bills aimed at overhauling the country’s fiscal and revenue administration framework.
The signing ceremony, held at the Presidential Villa in Abuja, was attended by top-ranking officials including the President of the Senate, the Speaker of the House of Representatives, majority leaders of both chambers, and the chairmen of their respective finance committees. Also present were the Chairman of the Nigeria Governors’ Forum, the Chairman of the Progressive Governors’ Forum, the Minister of Finance and Coordinating Minister of the Economy, and the Attorney General of the Federation.
The four new laws—the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill—were passed by the National Assembly following extensive consultations with stakeholders across the country.
President Tinubu described the legislation as a decisive step toward building a modern, efficient, and transparent tax system that would stimulate investment, reduce the burden of multiple taxation, and enhance national development.
“These bills reflect our unwavering commitment to create a simplified, coherent, and investor-friendly tax regime. They also address long-standing challenges within our fiscal structure,” the President said.
Key Highlights of the New Laws:
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Nigeria Tax Bill (Ease of Doing Business): Consolidates the nation’s diverse tax laws into a single framework, reducing duplication, clarifying obligations, and simplifying compliance for taxpayers and businesses.
Nigeria Tax Administration Bill: Establishes a unified legal and operational structure for tax administration across the federal, state, and local government levels—aimed at improving coordination, efficiency, and consistency in tax collection.
Nigeria Revenue Service (Establishment) Bill: Replaces the existing Federal Inland Revenue Service (FIRS) with a newly formed Nigeria Revenue Service (NRS), a performance-oriented institution with broader responsibilities, including non-tax revenue collection. The bill embeds robust accountability and transparency mechanisms.
Joint Revenue Board (Establishment) Bill: Introduces a national governance body to harmonize tax administration across all levels of government. It also establishes a Tax Appeal Tribunal and an Office of the Tax Ombudsman to safeguard taxpayer rights and improve dispute resolution.
The tax reform package has been widely hailed by economic analysts and stakeholders as a bold and timely move. Observers say it will strengthen Nigeria’s revenue base, enhance investor confidence, deepen fiscal federalism, and reduce the administrative burden on businesses.
The reforms are also expected to drive job creation, improve service delivery, and bolster public trust in the nation’s tax system.
State House officials emphasized that these legislative advancements are central to President Tinubu’s broader economic reform efforts aimed at stabilizing the macroeconomic environment and fostering long-term growth.
By PRNigeria
