NRS: FIRS is Gone. Nigeria Revenue Service Takes Over as Tax Laws Take Effect Today (Jan 1)

Lagos, Nigeria – Despite weeks of heated controversy and calls for suspension, the Federal Government has confirmed that the new Tax Reform Laws have officially taken effect today, January 1, 2026.

This marks the end of the Federal Inland Revenue Service (FIRS), which has been legally repealed and replaced by the Nigeria Revenue Service (NRS).

“No Going Back” – Oyedele Confirms After Tinubu Meeting Following a high-stakes meeting with President Bola Tinubu in Lagos just days before the deadline, Taiwo Oyedele (Chairman, Presidential Fiscal Policy & Tax Reforms Committee) confirmed there would be no delay. He dismissed calls from the Nigerian Bar Association (NBA) and opposition leaders to suspend the law due to alleged “forgery” errors in the gazetted copy.

Why the “Suspension” Was Rejected Oyedele argued that the Executive branch lacks the constitutional power to “pause” a law once enacted. More critically, he warned that because the new Nigeria Revenue Service (Establishment) Act explicitly repealed the old FIRS Act, suspending the new law would have left Nigeria with no tax authority at all, creating a catastrophic legal vacuum.

What Changed Today (Jan 1, 2026)?

• New Agency: All tax administration is now under the Nigeria Revenue Service (NRS). The FIRS legally ceases to exist.
• VAT & Income Tax: Implementation of new rates and exemptions (including 0% CIT for small businesses) begins today.
• Re-Gazetting Pending: The National Assembly leadership has directed the Clerk to “re-gazette” the laws to correct the specific discrepancies and errors identified by lawmakers, but the law remains active while this administrative correction happens.

Opposition Threatens Legal Action Former Vice President Atiku Abubakar and the NBA have argued that “re-gazetting” is illegal and that the laws should have been voided and re-passed. It is expected that lawsuits challenging the legitimacy of the NRS will be filed in the coming days.