Nigeria has embarked on its most ambitious tax reform in decades, with the signing of four landmark laws on June 26, 2025. These laws — the Nigeria Tax Act (NTA), Nigeria Tax Administration Act (NTAA), Nigeria Revenue Service (Establishment) Act (NRSA), and the Joint Revenue Board (Establishment) Act (JRBA) — will take effect from January 1, 2026. Together, they represent a sweeping overhaul of the country’s tax system, aiming to simplify administration, expand the tax net, and boost government revenue.
At the heart of the reform is the transformation of the Federal Inland Revenue Service (FIRS) into the Nigeria Revenue Service (NRS). This new body has been granted expanded powers, not only to collect taxes but also to administer non‑tax revenues. The NRS is designed to operate with greater autonomy, reducing bureaucratic overlap and ensuring more efficient enforcement of tax laws across the federation.
One of the most significant changes is the consolidation of multiple outdated tax statutes into a single framework. Previously, Nigeria’s tax system was fragmented, with overlapping laws governing personal income tax, corporate tax, VAT, and capital gains. The new reform repeals more than a dozen old statutes, creating a unified structure that is easier to understand and administer.
The reform also introduces a modern identification system for taxpayers. Individuals will now use their National Identification Number (NIN), while companies will rely on their Corporate Affairs Commission (CAC) registration numbers. This eliminates the need for separate tax ID cards and ensures that tax compliance is seamlessly integrated into existing national databases.
Another key feature is the harmonization of tax administration across federal and state levels. The Joint Revenue Board (JRBA) will serve as a coordinating body, ensuring consistency in tax collection and reducing conflicts between federal and state authorities. This is expected to improve efficiency and reduce duplication of efforts.
Supporters of the reform argue that it will broaden Nigeria’s tax base, reduce reliance on oil revenue, and strengthen fiscal sustainability. With FIRS reporting ₦22.59 trillion in collections for 2025, the government expects even stronger performance under the new framework. By capturing more taxpayers and streamlining processes, the reform could significantly increase non‑oil revenue.
However, the reform has not been without controversy. The Nigerian Bar Association (NBA) and former Vice President Atiku Abubakar have alleged that the laws were altered after passage by the National Assembly. They have called for suspension of implementation pending investigation, raising questions about legislative transparency and credibility.
Critics also worry about enforcement. While the reform promises efficiency, ordinary citizens fear stricter compliance measures could burden low‑income earners and small businesses. The integration of NIN and CAC numbers into tax records means authorities can easily track inflows into accounts, raising concerns about privacy and fairness.
Despite these concerns, the reform represents a bold step toward modernizing Nigeria’s fiscal system. By consolidating laws, strengthening institutions, and leveraging digital identification, the government hopes to create a tax system that is both fairer and more effective. The success of the reform, however, will depend on whether citizens see tangible benefits from the taxes they pay.
In conclusion, Nigeria’s new tax reform is a landmark policy shift that could reshape the country’s fiscal landscape. It promises efficiency, broader coverage, and stronger revenue generation, but it also faces challenges of trust, fairness, and implementation. For Nigerians, the coming year will be a test of whether this ambitious overhaul delivers on its promise of a more accountable and sustainable tax system.
