The Nigeria Revenue Service (NRS) has clarified that only officially gazetted Acts of the National Assembly carry legal authority, dismissing claims that the country’s newly enacted tax reform laws were modified after passage.
The Executive Chairman of NRS, Zacch Adedeji, provided the clarification during a television interview monitored in Abuja.
According to Adedeji, the recent NRS tax reform represents more than a mere rebranding of the Federal Inland Revenue Service (FIRS). It is a comprehensive institutional upgrade, transitioning Nigeria’s tax administration from a fragmented system to a modern, digitalised, centralised, and intelligence-driven framework.
“Only the officially gazetted Acts carry legal authority and are binding on taxpayers and administrators,” Adedeji said, stressing that draft bills, committee reports, or chamber debates do not hold enforceable power.
Institutional Upgrade Central to NRS Tax Reform
The NRS tax reform consolidates multiple tax and revenue functions previously spread across various agencies, bringing them under a single, centralised authority.
Adedeji emphasized that automation, data integration, and intelligence-led processes now underpin all revenue administration activities.
“The overhaul is designed to reduce human discretion, eliminate redundancies, and streamline the tax collection process across all sectors,” he said.
“Revenue agencies, courts, and taxpayers are guided solely by the gazetted law, not draft versions.”
Under the new system, Nigeria now has a unified revenue collection mechanism that incorporates digital tracking, enhanced compliance monitoring, and predictive analytics.
According to Adedeji, these reforms are expected to improve efficiency, reduce leakages, and support the Federal Government’s fiscal objectives.
Presidential Assent and Gazetting: Legal Backbone of NRS Tax Reform
The NRS boss clarified the legal foundation for implementing the reforms. An Act of the National Assembly only becomes effective after receiving Presidential assent and official gazetting.
The gazetted version is the authoritative text in the event of disputes.
“Neither the executive nor the revenue authority has the capacity or incentive to alter the law after passage,” Adedeji stated.
This ensures that taxpayers and administrators have a single, clear, and enforceable reference point, eliminating ambiguity and reinforcing the credibility of the NRS tax reform.
Taxing Prosperity, Not Poverty
Adedeji outlined the government’s vision behind the NRS tax reform, stressing a shift towards taxing profits and returns rather than capital or investments.
“We are not going to tax poverty; we want to tax prosperity,” he said.
He added that the reform is aligned with broader economic strategies, aiming to enhance domestic revenue mobilisation while fostering an enabling environment for investment and economic growth.
By focusing on taxable wealth rather than income from subsistence or low-return activities, the NRS hopes to improve compliance and equity within Nigeria’s tax system.
Improving Nigeria’s Tax-to-GDP Ratio
The NRS tax reform also seeks to strengthen Nigeria’s tax-to-GDP ratio, which has risen to approximately 13.5% as of October 2025 but remains below the African average and peer emerging markets.
Adedeji highlighted that the reform’s long-term goal is to increase this ratio sustainably, providing the government with additional fiscal space for infrastructure, health, and social interventions.
“The consolidation and modernisation of revenue collection under the NRS will enable us to capture more of the formal economy, reduce leakages, and broaden the tax base,” he noted.
Addressing Misconceptions About Tax Reform
Recent public discourse suggested that the NRS tax reform laws had been altered post-passage.
Adedeji categorically rejected such claims, reiterating that any official legal obligation arises only from gazetted Acts.
The clarification is expected to allay concerns among taxpayers and investors about potential retroactive adjustments or inconsistencies in tax enforcement.
“Businesses, individuals, and financial institutions can rely on the gazetted law with confidence,” Adedeji said.
Future Outlook and NRS Initiatives
With the NRS tax reform fully in effect, the agency is rolling out a series of initiatives to support taxpayers, including enhanced digital platforms for filing, real-time monitoring of compliance, and public engagement programs.
These measures aim to foster transparency, build trust, and improve overall efficiency in revenue administration.
Adedeji concluded that the reforms represent a cornerstone of the Federal Government’s Renewed Hope Agenda, reflecting a commitment to modern governance and improved public service delivery.
“The gazetted law is now the definitive reference. Our mission is to ensure that taxation is fair, transparent, and aligned with national economic objectives,” he said.
