The transition from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) represents a fundamental institutional overhaul rather than a mere change of name, Executive Chairman Dr. Zacch Adedeji has said, as he sought to address mounting public concerns surrounding Nigeria’s new tax reform framework.
Speaking during an extensive interview on Arise News, Adedeji explained that the newly gazetted tax laws are designed to modernise Nigeria’s fragmented revenue system, enhance transparency, and build trust between taxpayers and the government, while deliberately shielding low-income earners from undue burden.
According to him, tax reform was a central policy commitment of President Bola Tinubu from his inauguration, driven by the recognition that Nigeria’s existing tax structure could no longer sustain the level of development required for long-term economic growth.
He said the reform process followed due constitutional procedure, including nationwide consultations, public hearings, and legislative scrutiny before being passed by the National Assembly and assented to by the President.
Adedeji dismissed claims that the executive arm altered provisions of the bills after legislative approval, describing such allegations as unfounded and misleading.
He maintained that the only valid reference document for implementation is the official gazetted version released by the National Assembly, stressing that revenue authorities have no constitutional role in amending laws.
“Change naturally attracts resistance,” he said, noting that tax reforms globally often face pushback from interests invested in preserving the status quo. “But the essence of this reform is not to tax more; it is to tax right – fairly, transparently, and efficiently.”
Addressing fears that the new regime empowers the NRS to bypass judicial oversight or intimidate taxpayers, Adedeji emphasised that the agency remains bound by due process and the rule of law.
He described the relationship between tax authorities and citizens as mutually dependent, arguing that government revenue can only grow sustainably when businesses and individuals prosper.
On international cooperation, Adedeji defended the Memorandum of Understanding signed with France on digital taxation and transfer pricing, explaining that similar agreements exist with the United Kingdom, South Africa, and other jurisdictions. Such collaborations, he said, are standard practice in a globalised economy and do not compromise Nigeria’s data sovereignty or taxpayer confidentiality.
He also clarified misconceptions around provisions relating to currency computation, bank reporting thresholds, and alleged scrutiny of bank transaction narrations.
According to him, the law permits tax computation in the currency of transaction while allowing payment in naira at prevailing exchange rates, a measure designed to reduce pressure on foreign exchange markets rather than distort them.
Crucially, Adedeji rejected claims that the reform targets the poor, insisting that over 95 per cent of low-income Nigerians are effectively exempt. He cited the removal of Value Added Tax on basic food items and transportation as evidence that the reform disproportionately benefits vulnerable groups, while shifting the tax burden toward actual profits rather than capital or turnover.
On the transformation from FIRS to NRS, the chairman said the change reflects an expanded mandate beyond tax collection to include revenue intelligence, digital integration, and centralised administration of all government revenues, internal and external.
The former “federal” designation, he argued, no longer captured the agency’s role, especially given that a significant portion of collections such as VAT is redistributed to states.
“This is not about signposts or logos,” Adedeji said. “It is a total institutional upgrade – moving Nigeria from a fragmented, manual system to a modern, data-driven revenue administration capable of supporting a prosperous nation.”
He further assured Nigerians that a comprehensive transition framework is already in place, including major investments in technology and staff capacity, aimed at reducing human discretion, curbing leakages, and improving efficiency.
With most manual processes now automated, Adedeji said the NRS is prepared to deliver what he described as Nigeria’s most significant fiscal reform in decades.
As implementation gathers pace, he urged Nigerians to judge the reforms by their outcomes, expressing confidence that the new regime will ultimately stimulate economic growth, enhance compliance, and secure sustainable revenue for national development.