FIRS Hits ₦22.59tn Revenue as New Tax Laws Redefine Nigeria’s Revenue System
Nigeria’s Federal Inland Revenue Service (FIRS) closed 2025 with record-breaking revenue, landmark legal reforms and deeper use of technology, a combination analysts say has fundamentally reshaped the country’s tax administration and set the tone for 2026.
In a year-end review, Arabinrin Aderonke Atoyebi described 2025 as a defining year for the agency under the leadership of its Executive Chairman, Dr Zacch Adedeji. According to her, the reforms introduced during the year moved beyond policy intentions and produced measurable outcomes.
She noted that the year was not only about headline figures, but about structural changes that point to a more predictable and efficient revenue system.
Source: UGC
New tax laws reshape the framework
At the heart of the transformation was the signing of four major tax reform laws by President Bola Ahmed Tinubu.
Chief among them was the Nigeria Revenue Service Establishment Act, which formally transitioned FIRS into the Nigeria Revenue Service, NRS.
The new framework grants the agency greater operational autonomy, expands its mandate to include non-tax revenue and harmonises previously fragmented tax laws.
Atoyebi said the reforms represent a shift toward a more organised and accountable tax system capable of supporting growth while ensuring fairness for taxpayers.
The changes are also expected to reduce uncertainty for businesses and individuals by clarifying procedures and strengthening the institutional base of revenue administration.
₦22.59tn collected as non-oil revenue gains ground
The scale of the revenue surge underscored the impact of the reforms. Between January and August 2025, the agency collected ₦20.62 trillion, equivalent to 82 per cent of its ₦25.2 trillion annual target.
By September, total collections had risen to ₦22.59 trillion, with non-oil revenue contributing a significant portion. Over two years from October 2023 to September 2025, total collections reached ₦47.39 trillion.
Atoyebi attributed the performance to improved processes, policy alignment and stronger enforcement supported by technology, noting that the numbers reflect a more disciplined approach to tax administration.
Technology drives compliance and transparency
Technology played a central role in the agency’s operations throughout the year.
FIRS introduced a national electronic invoicing system for large taxpayers, requiring companies with an annual turnover of ₦5 billion and above to integrate their invoicing platforms.
The system enables real-time reporting and validation of invoices, giving the agency clearer visibility into business transactions while helping companies meet their obligations more efficiently.
By December, many large firms were transmitting invoices live through the platform, a move widely seen as a boost to compliance and transparency.
Building capacity for a bigger mandate
Beyond laws and systems, attention was also placed on people. The agency carried out competitive recruitment exercises and invested heavily in staff training, welfare and capacity development nationwide.
Atoyebi said the focus on human capital was deliberate, adding that a better-trained and motivated workforce is critical to managing modern tax tools and the agency’s expanded responsibilities.
2026 set to reveal full impact
The full effects of the reforms are expected from 1 January 2026, when the four new tax laws come into force.
These include the Nigeria Tax Bill, Nigeria Tax Administration Procedure Bill, Nigeria Revenue Service Establishment Bill and Joint Tax Board Establishment Bill.
Under the new regime, taxpayers are expected to experience clearer procedures, faster services and improved transparency.
For the agency, the laws provide the tools for stronger monitoring, better use of technology and more efficient collection.
Source: Twitter
Describing the moment as the start of a new era, Atoyebi said the foundations laid over the past two years have positioned the revenue service for sustained progress in 2026 and beyond.
New tax? FG clarifies on 4% Development Levy
Legit.ng earlier reported that FIRS has moved to calm rising concerns over Nigeria’s new tax laws, explaining that the much-debated four per cent Development Levy on imported products is not a fresh charge.
Instead, it’s a consolidation of several pre-existing levies that businesses were already paying in separate streams.
The clarification comes as the Nigeria Tax Act and the Nigeria Tax Administration Act continue to spark debate across the country.
Source: Legit.ng
