Tinubu Proposes establishment of Nigeria Revenue Service

….May strip Customs, NPA, NIMASA of revenue collection powers

By FEMI AKINOLA

The Federal Government under the leadership of President Bola Ahmed Tinubu, is proposing establishment of a new entity to be known as Nigeria Revenue Service (NRS) to handle all revenue collection tasks.

Last Thursday, the President forwarded four executive bills to the National Assembly, seeking to implement reform of the government’s tax collection system.

The key bill among the four, the Nigeria Revenue Service (Establishment) Bill, proposes renaming the Federal Inland Revenue Service (FIRS) and grant the new agency the responsibility of assessing, collecting, and accounting for government revenue.

The propose NRS is part of a broader effort to introduce comprehensive tax reforms aimed at enhancing governmentr revenue collection.

If it scale through the necessary legislative process and become operational, the NRS will take over revenue collection powers from the Nigerian Port Authority (NPA), Nigerian Maritime Administration Agency (NIMASA), and the Nigerian Customs Service (NCS) and others from collecting revenue on behalf of the Federal Government.

The reform, according to the Presidency, is targeted at streamlining collection of direct taxes and levies, preventing about 60 or more agencies from continuing their revenue collection functions.

Instead, the newly proposed NRS will centralise the process and ensure maximum revenue generation to fund public services and infrastructure.

Findings about the proposed new agency shows that the reform did not plan to merge existing agencies but transfers their revenue collection roles to the new agency.

This structure reflects the model being used by tax agencies in the United State and the United Kingdom, where a single entity manges government revenue, allowing other agencies to focus on their core mandate.

The other three executive bills sent to the National Assembly includes the Transmission of Fiscal Policy and Tax Reform Bill, Nigeria Tax Bill and Nigeria Tax Administration Bill.