Record revenue, new tax laws reshape Nigeria’s revenue service in 2025
Nigeria’s Federal Inland Revenue Service (FIRS) ended 2025 with its highest revenue collections on record and a set of new tax laws that are expected to change how the country’s revenue system operates from 2026. In a year-end review, Arabinrin Aderonke Atoyebi said the past year marked a significant phase for the agency under the […]
Zacch Adedeji, Executive Chairman, Nigeria Revenue Service
Nigeria’s Federal Inland Revenue Service (FIRS) ended 2025 with its highest revenue collections on record and a set of new tax laws that are expected to change how the country’s revenue system operates from 2026.
In a year-end review, Arabinrin Aderonke Atoyebi said the past year marked a significant phase for the agency under the leadership of its Executive Chairman, Dr. Zacch Adedeji, as reforms translated into concrete outcomes in revenue performance, legal structure and operations.
She said 2025 was notable not only for the amount of revenue collected but also for the institutional changes introduced during the period.
Central to the developments was the signing of four tax reform laws, including the Nigeria Revenue Service (Establishment) Act, which will transition FIRS into the Nigeria Revenue Service (NRS) from January 2026.
The new framework is expected to give the agency greater autonomy, expand its mandate to include non-tax revenue and harmonise existing tax laws.
“These reforms point to a more coordinated and predictable tax system,” Atoyebi said, adding that the changes are intended to strengthen the legal foundation of revenue administration and reduce uncertainty for taxpayers.
On revenue performance, she said FIRS collected ₦20.62 trillion between January and August 2025, representing about 82 per cent of its ₦25.2 trillion target for the year. By September, total collections had reached ₦22.59 trillion, with non-oil revenue contributing a significant share.
She added that total collections between October 2023 and September 2025 stood at ₦47.39 trillion.
“We have not seen figures of this scale before,” Atoyebi said. “They reflect the impact of policy changes, tighter processes and wider use of technology in tax administration.”
Technology featured prominently in the agency’s operations during the year, with the rollout of a national electronic invoicing system for large taxpayers. Companies with annual turnover of ₦5 billion and above are required to integrate their invoicing systems with the platform.
According to Atoyebi, the system allows invoices to be reported and validated electronically in real time, giving the agency better visibility of business transactions.
“It is designed to reduce errors and improve compliance, while also making it easier for companies to meet their obligations,” she said.
By December, she noted, a number of large firms had completed integration and were transmitting invoices through the platform.
The agency also focused on staffing and internal capacity during the year, carrying out recruitment exercises and expanding training and welfare programmes for employees across its offices.
Atoyebi said the effort was aimed at preparing the workforce for new systems and the broader responsibilities expected under the revised legal framework.
“We are paying more attention to building capacity so staff can effectively manage modern tools and processes,” she said.
She linked the 2025 performance to reforms introduced earlier in Dr. Adedeji’s tenure, noting that the year’s outcomes reflected work that began in 2024.
According to her, “what we are seeing now is the result of reforms that have been implemented steadily over time.”
The four tax reform laws signed by President Bola Tinubu are scheduled to take effect on January 1, 2026. They include the Nigeria Tax Bill, the Nigeria Tax Administration Procedure Bill, the Nigeria Revenue Service Establishment Bill and the Joint Tax Board Establishment Bill.
The laws are expected to introduce clearer tax procedures, improve access to services such as Tax Identification Numbers and tax clearance certificates, and enhance transparency in revenue management.
For the agency, the changes are intended to strengthen compliance monitoring, expand the use of technology and improve efficiency in collection.
Atoyebi said the coming year would test how effectively the new framework works in practice.
“The real impact will become clearer in 2026, when the new laws take full effect,” she said.
She added that while 2025 stood out for record collections and structural reforms, the focus going forward would be on service delivery and sustaining compliance.
“Our task now is to ensure that these changes translate into better experiences for taxpayers and more transparent revenue management,” she said.