The chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele has shed light on the rationale behind renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS).
Naijaonpoint gathered that the proposed name change is part of the Nigeria Revenue Service Establishment Bill currently before the National Assembly, which seeks to replace the FIRS Establishment Act with new legislation to create the NRS.
Addressing stakeholders, including tax consultants and Chief Financial Officers (CFOs), Oyedele clarified that the FIRS operates as a revenue agency for the entire federation, not just the federal government.
He pointed out that taxes collected by the agency are deposited into the Federation Account, underscoring its broader national mandate.
Oyedele also emphasized the importance of separating regulatory functions from tax collection, a key component of the proposed reforms.
“The Nigeria Revenue Service Establishment Bill aims to repeal the Federal Inland Revenue Service (FIRS) Establishment Act and establish the Nigeria Revenue Service (NRS),” Oyedele explained.
“The FIRS is not solely a federal revenue agency; its collections serve the Federation. The name FIRS does not accurately reflect its role. Renaming it to NRS aligns with its function of administering taxes, levies, and revenues for the government. Additionally, we aim to ensure regulators are not directly involved in collecting taxes and levies.”