President Tinubu to stop revenue collection from top federal agencies
President Bola Tinubu has announced a plan to centralize revenue collection in Nigeria, transferring responsibilities from 60 existing agencies to a newly proposed entity known as the Nigeria Revenue Service (NRS).
This initiative aims to boost efficiency, maximize revenue generation, and reduce the country’s fiscal deficit.
The restructuring involves removing revenue collection functions from agencies like the Nigerian Customs Service (NCS), Nigerian Ports Authority (NPA), and others, redirecting their focus to their primary mandates, such as trade facilitation and regulatory duties.
The NRS, modeled after tax agencies in developed countries, will centralize the collection process to ensure better accountability and effectiveness.
Alongside this proposal, Tinubu submitted multiple bills to the National Assembly, including the Nigeria Revenue Service (Establishment) Bill, which would replace the Federal Inland Revenue Service (FIRS).
The new legislative package also includes measures to create a Tax Tribunal and a Tax Ombudsman to handle tax disputes and promote a fair taxation system.
The government’s target is to increase Nigeria’s tax-to-GDP ratio to 18%, addressing the country’s fiscal imbalance and reducing reliance on borrowing.
The initiative aims to create a more robust fiscal framework, enabling better public service funding and infrastructure development.
The reform package, based on recommendations from the Presidential Fiscal Policy and Tax Reforms Committee, led by Taiwo Oyedele, seeks to simplify Nigeria’s tax system by reducing the number of taxes from 62 to nine.
This move is intended to ease the tax burden on small businesses and vulnerable groups while ensuring that wealthier entities contribute proportionately.
Agencies Affected Include:
– Nigerian Customs Service (NCS)
– Nigerian Ports Authority (NPA)
– Federal Airports Authority of Nigeria (FAAN)
– Nigerian Civil Aviation Authority (NCAA)
– National Agency for Food and Drug Administration and Control (NAFDAC)
– Standards Organisation of Nigeria (SON)
– Nigerian Maritime Administration and Safety Agency (NIMASA)
– Federal Road Safety Corps (FRSC)
– Nigeria Deposit Insurance Corporation (NDIC)
These changes will also impact several other entities, such as the Nigerian Railway Corporation, Corporate Affairs Commission (CAC), and additional regulatory bodies, all of which will have their revenue collection duties transferred to the NRS.
