The Nigeria Revenue Service (NRS) is established to replace the Federal Inland Revenue Service (FIRS). From January 2026, the FIRS will be called NRS. This is similar to the United States IRS. It is also called “the Service”. This article explains how the Service was established by the NRS (Establishment) Act 2025.
What is the Nigeria Revenue Service?
This is a government agency responsible for collecting taxes and other revenue accrued to the Federal Government of Nigeria (FGN). Some of the taxes collected by the NRS include company income tax, value-added tax, withholding tax as it affects corporations, petroleum profit tax amount, and others.
Aside from the collection of revenues, the NRS teaches tax education and enforces the tax law. Section 3(3) of the NRS (Establishment) Act, 2025 explains that the agency has the power to acquire, hold or dispose of any movable or immovable property to carry out its functions under the Act.
The second schedule of the Act lists the legislation that can be enforced by the Service. Some of them are the Nigeria Tax Act and the Nigerian Tax Administration Act. They can assess and collect fees, levels, and fines. This includes: signature bonus, pipeline fees, and penalties for gas flaring.
How is NRS established?
Part 2 of the NRS (Establishment) Act examines how the Service is established. Section 3(1) states: “There is established the Nigeria Revenue Service (in this Act referred to as “the Service”). The Act creates the NRS. This makes it an artificial body. An existing legal corporation.
Read: The Nigerian Tax system and the current tax laws
Section 3(2) explains that the Service shall be a body corporate with perpetual succession, and a common seal; may sue or be sued in its name; and may acquire, hold or dispose of any property, movable or immovable, for carrying out any of its functions under this Act.
Let's explain these in detail:
Body corporate: As stated earlier, the Act creates the Service. This makes it a body corporate or artificial person as it is often called. As a body corporate, it can use its name to take actions.
For example, if Mr Akin is a manager in NRS and he was the one sent to carry out a tax audit in your company. When reporting it to your boss, you won't say Mr Akin came to your office, but you will say the NRS came to the office. So, Mr Akin acts on behalf of a body corporate.
Perpetual succession: This implies that the Service shall continue to exist for a long period of time. It cannot end. Board members will be appointed and many will resign or complete their service till retirement.
But, the Nigeria Revenue Service will still be in existence. It comes to an end if the government decides to establish another law that will repeal the NRS (Establishment) Act 2024.
Therefore, the above statement that it is a body corporate with perpetual succession having a common seal means the Service will be seen as an artificial corporation with continuous existence and a seal or brand that distinguishes it from other body corporates.
Sue and be sued: This shows that NRS can sue taxpayers with its name. More so, a taxpayer can sue the Service. Therefore, we can have a case in a court of jurisdiction with the title: NRS vs. Alabi Okon or Ellah Lakes Plc Vs. NRS.
Read: Objective and Application of the Nigerian Revenue Service (Establishment) Act 2025
Acquire, Hold and Dispose: The Service will have the power to acquire, hold, and dispose (sell) properties in its name. The building of the NRS is acquired in the name of the NRS and not the name of the president of Nigeria.
Conclusion:
In summary, the NRS is created to replace the FIRS. It will carry out its role and any other roles decided by the federal government from time to time. It is a legal person and can use and be sued in its name.