INTRODUCTION

Amongst Nigeria’s tax reform acts are three major administration laws: the Nigeria Tax Administrative Act (NTAA), the Nigeria Revenue Service (Establishment) Act 2025 (NRSA or NRS Act), and the Joint Revenue Board (Establishment) Act (JRB Act). These laws replace older frameworks and establish a more unified, coordinated, and compliance-driven tax structure across federal, state, and local government levels.

In our part 1, “The Nigeria Tax Act 2025: An Outlook of Income and Profit Taxation under the Present Regime,” we gave a clear rundown of the key income tax changes individuals and companies need to know, and practical pointers to assist individuals and businesses stay compliant. In this part, we break down how the new tax administration system directly affects you and your business, from tax registration and compliance to enforcement and dispute resolution.

A. The Nigeria Revenue Service (NRS) Replaces the Federal Inland Revenue Service (FIRS): The NRS Act establishes the NRS as the new federal tax authority, and repeals the FIRS (Establishment) Act of 2007, effective from January 1, 2026. This means that from the effective date, the FIRS becomes defunct. Going forward, all references to the FIRS in previous laws would be deemed to refer to the NRS, meaning that businesses will interface primarily with the NRS for federal taxes. The NRS assumes full responsibility for assessing, collecting, and enforcing federal taxes. Notably, while state and local taxes fall under the relevant State Internal Revenue Services and local councils, the NRS can also assist states and local tax authorities achieve coordinated compliance particularly by sharing taxpayer information, such as Tax Identification Numbers (TINs).

B. The Joint Revenue Board (JRB) Replaces the Joint Tax Board (JTB): The JRB Act establishes a new high-level body, the Joint Revenue Board, to replace the Joint Tax Board (JTB), effective January 1, 2026. The JRB is tasked with harmonising tax policies and coordinating tax administration across all levels of government. It oversees unified initiatives like a national taxpayer ID database and resolves inter-agency and jurisdictional disputes between the federal and state tax authorities. Notably, the JRB also hosts the Tax Appeal Tribunals and a newly established Tax Ombud, bodies designated to handle taxpayer complaints, improve dispute resolution and taxpayers’ protection.