Bola Tinubu is considering barring revenue-generating agencies from directly collecting funds on behalf of the Federal Government, with plans to establish a single entity—the Nigeria Revenue Service—to take over this responsibility.
This move aligns with a broader tax reform initiative aimed at substantially increasing revenue collection. The reforms are designed to enhance the efficiency of collecting direct taxes and various levies imposed on behalf of the government.
Under this proposal, agencies such as the Nigerian Customs Service, Nigerian Ports Authority, and over 60 other revenue-generating bodies would no longer collect revenues.
Instead, this function would be consolidated under the newly formed Nigeria Revenue Service.
By centralizing revenue collection, the government seeks to streamline processes, ensure more equitable tax contributions, and maximize revenues to fund public services and infrastructure.
The policy was introduced on Thursday when the President submitted four executive bills to the National Assembly, marking a significant step toward comprehensive tax reform.
Nigeria is grappling with a revenue crisis across all levels of government and aims to raise its tax-to-GDP ratio to a minimum of 18 percent.
Currently, Nigeria’s tax-to-GDP ratio is below the African average and ranks among the lowest globally.
This shortfall has resulted in fiscal deficits and over-reliance on borrowing to finance public spending, which has hindered socio-economic development.
One of the key reforms proposed is renaming the Federal Inland Revenue Service to the Nigeria Revenue Service.
According to a source within the Presidency, this new bill will not lead to a merger of agencies but will strip them of their revenue collection duties, transferring those responsibilities to the Nigeria Revenue Service.
“There is no merger of agencies. The bill will only take the revenue collection arm of each agency involved and take it to the Nigerian Revenue Service.
“The plan is that the new revenue agency will be like the US or UK revenue agency that collects all government revenues while other revenue agencies like NIMASA, NPA, Customs, etc, will now focus on their core mandate, which is trade facilitation. There is no merger at all,” the official said.
The bill proposing the name change for the Federal Inland Revenue Service (FIRS) was introduced in letters read during plenary sessions by Senate President Godswill Akpabio and House of Representatives Speaker Tajudeen Abbas.
The proposed legislation, titled the Nigeria Revenue Service (Establishment) Bill, aims to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007, and establish the Nigeria Revenue Service.
According to President Tinubu, the new agency will oversee the assessment, collection, and management of government revenues.
Alongside the name change, Tinubu submitted three additional tax reform bills to the National Assembly under the heading ‘Transmission of Fiscal Policy and Tax Reform Bills.’
The President also presented the Joint Revenue Board Establishment Bill, which proposes the creation of a Tax Tribunal and a Tax Ombudsman.
READ ALSO: Urgent Attention Must be Given to Security, Lifting People Out of Poverty in Africa—Peter Obi
He wrote, “The Nigeria Tax Bill: This bill seeks to provide a consolidated fiscal framework for taxation in the country.
“The Nigeria Tax Administration Bill: Aimed at offering a clear and concise legal framework, this bill will ensure the fair, consistent, and efficient administration of tax laws, facilitating ease of tax compliance, reducing disputes, and optimizing revenue collection.
“The Joint Revenue Board (Establishment) Bill: This proposal seeks to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman, which will work to harmonise, coordinate, and resolve disputes arising from revenue administration in Nigeria.”
Tinubu highlighted that the proposed tax bills would bring significant advantages to the country by encouraging taxpayer compliance, reinforcing fiscal institutions, and creating a more efficient and transparent fiscal system.
“I am confident that the bills, when passed, will encourage investment, boost consumer spending, and stimulate Nigeria’s economic growth,” Tinubu stated.
Follow the Parallel Facts channel on WhatsApp: https://whatsapp.com/channel/0029VaCQSAoHgZWiDjR3Kn2E
