NRS On Deck: FG Fires Up Digital Revenue Overhaul
The Big Picture
Less than 100 days before Nigeria’s new tax laws kick in, the Federal Government is rolling out an aggressive tech-first strategy to juice revenue and cut leakages. Officials want the tax-to-GDP ratio at 18 % in three years, up from today’s 10 %, The Guardian reports.
The Details
• The Federal Inland Revenue Service (FIRS) will morph into the National Revenue Service (NRS) on 1 January 2026, absorbing collection duties from Customs and other agencies.
• Finance ministry insiders say the end-to-end digital platform will reconcile “every naira” flowing into the Federation Account, slashing the cost of collection and plugging decades-old leakages, according to The Guardian.
• The roadmap dovetails with the Nigeria Tax Act 2025, signed in June and taking effect the same day. A handy Q&A published by Punch reminds workers,and influencers,that bank transfers aren’t taxed; income is.
Why It Matters / What They’re Saying
The reaction was swift. Finance Minister Wale Edun called the digital pivot “the beginning of accountability.” Tax pros meanwhile point to the expanded data visibility: “Yes, authorities will track compliance more closely,” Punch notes, but only profits,not balances,face the levy.
Around the Tax World
• Ogun gets tough: The state’s revenue boss says “nobody likes to pay tax,” but enforcement is “indispensable” to curb non-compliance. OGIRS has gone fully digital, letting residents pay via wallet or scratch card (Punch).
• VAT turf war heats up: The House of Reps advanced a bill that would slot Value Added Tax into the Exclusive Legislative List, giving Abuja undisputed control nationwide (BusinessDay).
• UK trade group wants clarity: The Nigerian-British Chamber of Commerce urged FIRS to issue “simplified guidelines” so SMEs aren’t tripped up by thresholds that many still confuse, especially the ₦50 m small-business line (New Telegraph).
• Know your exemption: Individuals earning the minimum wage,or under ₦800,000 a year,remain outside the personal income tax net (Punch).
Tax Stat of the Day
₦18 % , the target tax-to-GDP ratio the Tinubu administration wants to hit by 2028, up from roughly 10 % today (The Guardian).
Looking Ahead
All eyes now turn to 1 January 2026 when the NRS switches on and lawmakers resume debate on the VAT amendment. Expect a flurry of webinars and draft guidelines as agencies race to explain the new rulebook.