The Nigerian government has proposed new tax reform bills that are currently being discussed in the National Assembly. These bills aim to make major changes to how taxes are collected in the country. If approved, they would stop several federal agencies, like the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Customs Service (NCS), from collecting taxes and other fees.
Chairman of the Presidential Tax Committee, Taiwo Oyedele, confirmed the proposals during an interview with Channels Television on Friday, underscoring that the reform aims to eliminate tax collection duties for about 60 federal agencies. He said the goal of the reform is to stop about 60 federal agencies from collecting taxes. Oyedele explained that the new plan will put all tax collection under a new and improved Federal Inland Revenue Service (FIRS), which will be called the Nigerian Inland Revenue Service (NIRS).
Oyedele argued that agencies like NUPRC, which currently receive royalties from oil companies, should concentrate on regulation instead of managing taxes. Likewise, the NCS should focus on helping trade and securing borders, rather than collecting revenue. “Having too many agencies involved in tax collection is not efficient and is not common in other countries,” he stated.
The reform is part of a broader effort to streamline Nigeria’s tax system, increase revenue collection, and improve compliance. It also includes plans to increase the Value Added Tax (VAT) rate and offer exemptions for low-income earners to help reduce income inequality.
