If you’ve been following the economic headlines in Nigeria this week, you know that January 1st marked a significant shift in the country’s fiscal landscape. The Federal Inland Revenue Service (FIRS) is effectively transitioning into the Nigeria Revenue Service (NRS).
To clear the air on the controversies, fears, and technicalities of this new era, Dr. Zacch Adedeji, the Executive Chairman of the agency, sat down for a fiery and detailed interview with Dr. Reuben Abati on Arise News.
The conversation touched on everything from alleged "doctored" bills to the fear that the government is spying on your bank account. Here is a breakdown of the 5 key takeaways from the interview that every Nigerian taxpayer needs to know.
1. "Taxing Right, Not Taxing More"
Dr. Adedeji’s primary defense of the reforms centers on a specific philosophy: the government wants to tax prosperity, not poverty.
Responding to concerns that the new laws punish the poor, Adedeji argued that 95% of the poor are actually exempted under the new regime. He highlighted that VAT has been removed on food items and transportation, which consume the bulk of the disposable income of low-earners.
"I’m not going to tax poverty. I want to tax prosperity. I’m not going to tax seed. I want to tax the fruit." — Dr. Zacch Adedeji
He insisted that the goal is to simplify the system (reducing 62 tax books down to one consolidated book) and remove barriers to business growth.
2. The Controversy of the "Doctored" Bill
Dr. Abati pressed hard on the allegations raised by Hon. Abdussamad Dasuki and others — that the bill officially gazetted is different from what was harmonized and passed by the National Assembly. Critics claim specific sections (like Section 23, 30, and 60) were altered to give the NRS excessive powers and bypass court authority.
Adedeji dismissed these claims entirely as "rumors."
His stance? The Revenue Service only implements the law that is gazetted. He argued that the process was public, followed due process, and that the allegations come from those who prefer the status quo or wish to distract from the reform. He maintained that no executive tampering occurred, as the "vote book" belongs solely to the National Assembly.
3. Why the Name Change? (FIRS vs. NRS)
Why move from Federal Inland Revenue Service to Nigeria Revenue Service? Adedeji explained that this isn’t just a rebranding exercise or a new logo; it’s an "institutional upgrade."
He pointed out that the name "Federal" was misleading because the agency collects taxes that accrue to the Federation (including States and Local Governments), not just the Federal Government. For instance, 90% of VAT goes back to the states. The new NRS is designed to be a centralized, data-driven intelligence agency for all government revenue, not just a tax collector.
4. Bank Narrations and Privacy
A major fear among Nigerians is the intrusion into personal finances. With new mandates for banks to report accounts holding over ₦25 million (individuals) or ₦100 million (corporates), people are worried about privacy.
Dr. Adedeji assured Nigerians that:
No spying on narrations: The tax authority isn't reading your transaction descriptions (e.g., "money for food").
Transfer Costs: He clarified that stamp duty on transfers is now only paid by the payer, not the receiver, which he claims actually reduces the burden.
Data Security: Regarding the MoU signed with France and other nations, he insisted it is standard international practice for transfer pricing and that tax data is treated with the same confidentiality as medical records.
5. The "Dollarization" of Tax
There was confusion regarding Section 39(3), with fears that Nigerians would be forced to pay taxes in US Dollars.
The Chairman clarified the technicality: Computation vs. Payment.
If your transaction is done in Dollars, the tax is computed in Dollars. However, if you do not have Dollars, the law allows you to pay in Naira at the current exchange rate. This aims to prevent market distortion, ensuring that businesses don't scramble for forex just to pay taxes.
The Bottom Line
Dr. Adedeji concluded by asking for patience, stating that trust is built over time. He urged Nigerians to ignore "rumors and innuendos" and focus on the data. While the implementation officially started in June (when the President signed the bill), the new rates took effect on January 1st to give businesses a 6-month adjustment period.
Whether these reforms will truly "tax the fruit and not the seed" remains to be seen, but one thing is clear: The Nigeria Revenue Service is taking a much more aggressive, technology-driven approach to ensuring everyone pays their fair share.