The Nigerian Revenue Service (Establishment) Act 2025 (NRSEA) is the law that established the Nigerian Revenue Service (NRS) also called the Service. This will replace the Federal Inland Revenue Service. The Act repealed the FIRS Establishment Act, No. 13 of 2007. This article gives an overview of the Act.
Objective of the NRSEA 2025
Section 1 of the Act states that the objective is to “provide for a legal, institutional and regulatory framework for the administration of taxes and revenues accruable to the Government of the Federation.”
This implies that the primary goal of the administration is to account for tax revenues accrued to the Federal Government of Nigeria. Based on the law, the tax administrator is responsible for collecting taxes, levies, and fines that must be paid by Nigerian individuals and corporations.
To achieve this, the Nigerian Revenue Service will set up three frameworks. That is legal, institutional, and regulatory frameworks. These will be limited to the powers given to the NRS by the Act.
The legal framework involves providing additional guidance and principles that will help taxpayers understand the true intentions of the Nigeria Tax Act (NTA) 2025. For example, if a particular section of the NTA is misinterpreted by taxpayers, it is the duty of the NRS to clarify it.
Next is the institutional framework. It is the responsibility of the NRS’s board members to put a structure in place that will help collect revenues and administer the tax act. This includes the building structure and organogram. The accounting structure helps prevent fraud.
Read: The Nigerian Tax System and Current Tax Law
Lastly is the regulatory framework. This provides the groundwork for regulating Nigerian taxpayers, whether indigenous or non-indigenous. It means that the NRS is a regulatory body for all companies. Therefore, companies must comply with any regulations provided by the Service.
Application of the NRSEA 2025
Section 2 of the Act states that the Act applies throughout the Federal Republic of Nigeria. This means the boundaries of this Act are limited to Nigeria. It applies to all States of the Federation.
Therefore, the NRS can collect taxes from all States in Nigeria. This is why they have offices in each State of the country. They will also administer every aspect of their objectives explained above to taxable persons in the country.
This is a huge responsibility for the Service. Technology has helped the NRS to fulfil the objectives and application of the Nigerian Revenue Service (Establishment) Act 2025.