The technical assistant in broadcast media for the Executive Chairman of the Nigerian Revenue Service, NRS, formerly known as the Federal Inland Revenue Service (FIRS), Arabinrin Aderonke Atoyebi, has said that the change in the agency’s name marks the start of a planned and strategic effort to modernize tax administration.
DAILY POST reports that Nigeria has officially entered a new phase in managing taxes after the Nigeria Revenue Service (NRS) was formally launched, taking over from the Federal Inland Revenue Service, FIRS.
Officials say this represents a major shift in how the country handles its financial system. The change, which started in January 2026, is seen as more than just a name change. Atoyebi called the development a “defining moment in Nigeria’s fiscal history,” highlighting that the NRS represents a “structured, technology-based, and citizen-centered way of handling taxes in Nigeria.”
The main part of the reform is a set of new laws designed to make tax processes easier and more consistent throughout the country.
The Nigeria Revenue Service (NRS) Act replaces the old FIRS Act, giving the agency a broader role and more power.
Alongside this, the Nigeria Tax Act consolidates various tax laws into a system that Atoyebi described as “a more organized and easier-to-understand structure, which helps reduce confusion and separate parts.”
The Nigeria Tax Administration Act also explains the procedures for assessing, collecting, and enforcing taxes. In addition, the Joint Revenue Board (Establishment) Act sets up a clear system that facilitates cooperation among federal, state, and local tax agencies and includes protections such as avenues for appealing decisions and the establishment of a Tax Ombudsman.
Together, the reforms are meant to create, as Atoyebi explained, “a modern tax system, clearer laws, better teamwork, and stronger protections for citizens.” According to Atoyebi, the emphasis is now on transformation rather than mere transition.
“Modernizing tax administration involves more than just ensuring compliance,” she said in an article published on Wednesday.
“It means creating better systems, using digital tools for processes, making things more open and transparent, and ensuring tax services are easy to use, fair, and reliable. Under the new system, property registration processes are being streamlined, payment systems are being improved, and internal information flow is being organized to reduce unnecessary repetition.
“Federal and state governments are also expected to collaborate more closely, supported by systems that allow smooth information sharing. Technology is becoming a key part of the reform efforts. Previous digital projects have been expanded under the new setup, including the introduction of electronic invoicing systems that allow for real-time transaction monitoring.”
Atoyebi explained, “This system improves transaction visibility, reduces human error, and makes our records more reliable.”
She said it represents “a move towards rules-based operations instead of arbitrary actions. A major part of the overhaul focuses on small businesses and the informal sector, which play a significant role in Nigeria’s economy. The new framework provides easier compliance pathways and clearer guidance for lower-income earners.
“The goal is not to intimidate taxpayers but to engage them,” Atoyebi wrote, adding that when compliance is “easy and clear, people are more likely to participate willingly.”
She said this approach would increase tax participation “without discouraging entrepreneurship.”
“Trust,” she added, “remains at the core of the reforms. A modern system needs to be transparent in assessments, fair in enforcement, and accountable in operations.”
She emphasized that the NRS aims to see taxpayers not just as revenue sources, but as partners working together to build the country.
‘It’s not just change of name’ – Atoyebi highlights benefits of new tax administration
