President Bola Tinubu is set to introduce significant reforms to Nigeria’s revenue collection process, which could see major government agencies losing their ability to collect funds on behalf of the government. In a sweeping proposal, the President is aiming to create a single entity, the Nigeria Revenue Service, which will be responsible for handling all revenue collection tasks.
The plan is part of a broader effort by the Federal Government to improve its tax system and boost revenue generation. These reforms come at a time when Nigeria is grappling with low tax-to-GDP ratios, among the lowest in Africa, and facing significant fiscal deficits. The government’s aim is to increase its tax-to-GDP ratio to at least 18 percent, which would help reduce its reliance on borrowing to fund public expenditures.
Under this new plan, over 60 agencies that currently collect revenue, such as the Nigerian Customs Service and the Nigerian Ports Authority, will no longer perform this role. Instead, these agencies will shift their focus to their core functions, such as trade facilitation, while the newly created Nigeria Revenue Service will manage revenue collection.
The source told PUNCH, “There is no merger of agencies. The bill will only take the revenue collection arm of each agency involved and take it to the Nigerian Revenue Service.
“The plan is that the new revenue agency will be like the US or UK revenue agency that collects all government revenues while other revenue agencies like NIMASA, NPA, Customs, etc, will now focus on their core mandate, which is trade facilitation. There is no merger at all.”
The President officially submitted four bills to the National Assembly on Thursday to initiate these changes. One of the key proposals includes renaming the Federal Inland Revenue Service to the Nigeria Revenue Service. The proposed agency will be tasked with assessing, collecting, and accounting for all revenues owed to the government.
The bill also outlines plans for the creation of a Tax Tribunal and the establishment of a Tax Ombudsman to resolve revenue-related disputes and improve tax compliance.
Tinubu expressed confidence that these reforms would not only increase revenue collection but also encourage investment and stimulate Nigeria’s economic growth.
He wrote, “The Nigeria Tax Bill: This bill seeks to provide a consolidated fiscal framework for taxation in the country.
“The Nigeria Tax Administration Bill: Aimed at offering a clear and concise legal framework, this bill will ensure the fair, consistent, and efficient administration of tax laws, facilitating ease of tax compliance, reducing disputes, and optimizing revenue collection.
“The Joint Revenue Board (Establishment) Bill: This proposal seeks to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman, which will work to harmonise, coordinate, and resolve disputes arising from revenue administration in Nigeria.”
Speaker of the House of Representatives, Tajudeen Abbas, who received the bills, also emphasized that they align with the administration’s goals of economic growth and sustainability.
In addition to the Nigeria Revenue Service Bill, three other tax-related bills were submitted under the title ‘Transmission of Fiscal Policy and Tax Reform Bills.’ These include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, and the Joint Revenue Board Establishment Bill. Collectively, these proposals aim to establish a more transparent, efficient, and effective tax system in Nigeria.
The House of Representatives has consolidated six bills aimed at replacing the Fiscal Responsibility Act of 2007 with a new Fiscal Responsibility Bill, which seeks to improve accountability, transparency, and long-term economic stability.
