NRS (Establishment) Act 2025 was enacted in June 2025 and will be implemented from January 1st 2026. This article examines the general overview of the contents of this Act.
Content in the NRS (Established) Act
The Nigerian Revenue Service (Establishment) Act 2025 is made up of six parts, 43 sections and two schedules. The parts are: objectives and application, establishment of the Nigerian Revenue Service, establishment and composition of the governing board of the service, management and staff of the service, financial provisions and miscellaneous.
Each part and section of the Act is explained in the next heading. The NRS (Establishment) Act 2025 has two schedules. The first schedule explains the supplementary provisions relating to the board. While the second schedule discussed the legislation administered by the Service. These schedules will be discussed in a future article.
Summary of the NRS (Establishment) Act
Part I: Objective and application
This explains the objective of the act and the application level. The primary objective is to collect tax revenues on behalf of the government. The application is limited to Nigeria. The law cannot be applied in other countries. It has two sections. Section 1 is on the objective of the Act, and Section 2 is on the application.
Part II: Establishment of the Nigeria Revenue Service
There are three sections in his part. That is sections two to four. It explains the establishment of the NRS (the Service) and its replacement of the FIRS. In addition, it listed the functions of the service as well as the duty of tax collection in Nigeria.
Part III: Establishment and Composition of the Governing Board of the Service
Part 3 examines the establishment of the governing board of the service. The service is made up of 16 members, including the Executive Chairman. The governing board is also referred to as the board. Their powers, tenure, and emoluments, among other things, are explained in sections six to fifteen of the NRS (Establishment) Act 2025.
Part IV: Management and Staff of the Service
This section is about the management and staff. Part 4 explains the executive directors, the composition of the management committee, the staff, the pension and staff regulation. Sections 16 to 21 cover the part.
Part V: Financial Provisions
This part explains the financial provisions the act provided for the NRS. It starts with section 17 and ends in section 30, which tells us about the accountability of the Service. Part 5 is about funds and expenditure of the Service, accounts and audit, ethics and accountability.
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Part VI: Miscellaneous
This is the last part of the NRS (Establishment) Act 2025. It contains every other matter that relates to the Service but is not included in parts 1 to 5 of the Act. The sections explain confidentiality, secrecy of office, the accountant general's power to deduct unremitted revenue, among other things.
Conclusion
The sections of the Act are summarised above. We will discuss them in detail from time to time. The NRS (Establishment) Act 2025 applies to those involved in the administration of tax laws. Also, taxpayers should understand it. This gives them the power to request accountability from the tax authorities.