IMPLEMENTATION MEASURES UNDER NIGERIA’S NEW TAX LAW: ROLES OF THE PRESIDENT, LEGISLATURE, MINISTRY OF FINANCE, MDAS, TAX AUTHORITIES, AND INEC

Nigeria’s tax landscape has undergone its most fundamental transformation in decades. The Tax Reform Acts 2025, signed into law in June 2025 and effective from January 1, 2026, represent a comprehensive overhaul of the country’s fiscal framework. These reforms are not merely about increasing revenue; they are designed to address the high cost and inefficiency of governing the federation, reduce waste, duplication, and fragmentation within Nigeria’s fiscal architecture.

The success of these reforms depends not only on the quality of the legislation but on the effectiveness of its implementation. This requires coordinated action across multiple institutions: the President, the National Assembly, the Ministry of Finance, Ministries Departments and Agencies (MDAs), tax authorities at federal and state levels, and even the Independent National Electoral Commission (INEC). Each has a distinct role to play in ensuring that the new tax framework delivers on its promise of a fairer, simpler, and more growth-friendly tax system. This guide breaks down the implementation measures under Nigeria’s new tax law and the specific roles of each institution. Let us get into it.

The Tax Reform Acts 2025: A Brief Overview

The 2025 fiscal reform package comprises four key laws that collectively overhaul Nigeria’s tax system:

1. Nigeria Tax Act (NTA) 2025: The substantive charging statute that consolidates federal taxation into a unified legislative framework. It introduces progressive personal income tax bands exempting individuals earning up to ₦800,000 annually, zero-rating of VAT on essential goods and services, a 15% minimum effective tax rate for multinational enterprises, a 4% Development Levy on assessable profits, and a broader, substance-based approach to determining tax residence.

2. Nigeria Tax Administration Act (NTAA) 2025: Governs procedural and compliance matters, introducing mandatory electronic invoicing, real-time digital reporting, and enhanced data integration systems.

3. Nigeria Revenue Service (Establishment) Act 2025: Dissolves the Federal Inland Revenue Service (FIRS) and establishes the Nigeria Revenue Service (NRS) as a more autonomous institution, seeking to professionalise tax administration and insulate revenue collection from political interference.

4. Joint Revenue Board (Establishment) Act 2025 (JRBA 2025): Establishes a unified governance structure for tax administration across federal and state levels, promoting harmonisation of taxes, levies, rates, and charges while ensuring uniformity in revenue administration.

The Effective Date and Transition

The Tax Acts 2025 apply from their respective commencement dates as enacted in each law. In particular, January 1, 2026, for the Nigeria Tax Act 2025. The Federal Government issued the General Guidelines for the Implementation of the Tax Acts 2025, setting out the process for transition from the repealed tax laws to the new tax framework. Issued by the Federal Ministry of Finance, the Guidelines provide direction to taxpayers, tax practitioners, revenue authorities and other stakeholders.

The Role of the President

Assent and Signing into Law

The President’s primary role in the tax reform process is the assent to legislation. On 26 June 2025, President Bola Ahmed Tinubu signed into law the four landmark tax statutes, marking a significant milestone in Nigeria’s tax reform programme. This act of assent transformed the bills passed by the National Assembly into binding law, triggering the implementation process.

Power to Extend Deadlines

The President also holds the power to extend certain deadlines under the new laws. For instance, the President may, by order published in the Official Gazette, extend the date after which profits derived from domestic sales by Free Trade Zone Enterprises will be fully subject to tax. This power provides flexibility in implementation, allowing the government to respond to stakeholder concerns and economic realities.

Appointment and Oversight

The President appoints key leadership positions within the new tax administration structure. Under the Nigeria Revenue Service (Establishment) Act 2025, the President appoints the Chairman of the NRS Board, who also serves as the Executive Chairman of the Service, subject to confirmation by the Senate. The President also appoints Executive Directors and other members of the Board. The President also has the authority to set the general direction for tax policy through the Ministry of Finance and the Federal Executive Council.

Presentation of Reports

The Minister of Finance is required to present the annual report of the NRS to the Federal Executive Council and the National Assembly within 30 days of receipt. The President, through the Minister, ensures that the National Assembly is kept informed of the NRS’s activities and performance.

Potential for Extension of Transitional Period

The President may also have the power, through the Ministry of Finance and with the advice of relevant stakeholders, to further extend the transitional period for certain aspects of the new tax laws to ensure a smooth implementation and avoid disruptions to businesses and taxpayers.

The Role of the Legislature

Enactment of the Tax Laws

The National Assembly’s primary role is the enactment of tax legislation. Under his leadership, four tax reform bills were passed by the National Assembly in May 2025. The legislative process involves debates, committee hearings, and amendments, ensuring that the laws reflect the will of the people and serve the public interest.

Oversight and Accountability

The National Assembly exercises oversight over the tax administration through various mechanisms. The NRS is required to submit quarterly and annual reports on its activities, performance, and financial statements to the National Assembly. The National Assembly has the right to summon the Executive Chairman or members of the Board in respect of matters relating to administration and governance. This oversight function is critical for ensuring accountability and transparency in tax administration.

Confirmation of Appointments

The Senate has the power to confirm key appointments made by the President, including the Chairman of the NRS Board and the Executive Directors. This confirmation process provides a check on executive power and ensures that appointed officials are qualified and suitable for their roles.

Review and Amendment of Tax Laws

The National Assembly also has the power to review and amend tax laws as circumstances require. The JRBA provides for the Board to “recommend, participate, facilitate or initiate fiscal and tax policy reform in collaboration with relevant bodies”. This ensures that the tax laws remain relevant and effective in achieving their objectives.

The Role of the Joint Revenue Board

The JRBA establishes the Joint Revenue Board (JRB) as a body corporate with functions including the publication of tax indices, collaboration with relevant agencies to carry out surveys, and the recommendation of tax policy reform. The JRB is tasked with providing general policy guidelines, managing and superintending the policies of the Board, and reviewing and approving the strategic plans of the Board. This structure ensures that tax policy is developed in a coordinated and informed manner across all levels of government.

The Role of the Ministry of Finance

Issuance of Transition Guidelines

The Federal Ministry of Finance issued the “General Transition Guidelines for the Tax Acts 2025” on 18 June 2026, pursuant to Section 200 of the NTA and Section 144 of the NTAA. The Guidelines establish operational frameworks for implementing the four major tax Acts. The document provides a framework for managing transitional issues while ensuring that the new laws are not applied retrospectively.

Anchoring Principles of the Guidelines

According to the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, the Guidelines are anchored on three key principles: clarity, fairness and administrative certainty. The Guidelines are intended to promote uniform implementation and support effective administration across the Nigeria Revenue Service, State Internal Revenue Services, the FCT Internal Revenue Service, Local Government Revenue Committees, tax practitioners and taxpayers nationwide.

Policy Oversight

The Ministry of Finance maintains policy oversight over the tax system. The Guidelines establish a tripartite governance structure: the NRS administers the Acts and issues administrative regulations; the Minister maintains policy oversight; and the Joint Revenue Board supports harmonises administration across the federation. The Ministry also plays a role in ensuring that tax policies are aligned with the government’s broader economic objectives.

Presentation of Reports to the National Assembly

The Minister is required to present the annual report of the NRS to the Federal Executive Council and the National Assembly within 30 days of receipt of the report. The report must be prepared by 30 June of the year following the relevant period covered by the annual report. This ensures that the National Assembly is kept informed of the NRS’s activities and performance.

Coordination of Tax Policy

The Ministry of Finance serves as the central coordinator of tax policy, working with the NRS, the JRB, and other stakeholders to ensure that the tax system is coherent, efficient, and equitable. This includes the development of regulations, guidelines, and administrative procedures to support the implementation of the tax laws.

The Role of Ministries, Departments, and Agencies (MDAs)

Withholding and Remittance of Taxes

MDAs play a critical role in the collection of taxes under the new framework. Under Sections 150 and 154 of the NTAA, MDAs and appointed agents must withhold the VAT stated on their suppliers’ invoices, compile detailed schedules containing the suppliers’ Tax ID and transaction data, and remit the withheld tax directly to the NRS instead of paying it to the supplier. This makes MDAs active participants in the tax collection process.

Compliance with VAT Withholding Requirements

MDAs must also ensure that they comply with the rigorous compliance procedures and obligations outlined in the NRS Information Circular 2026/18. This includes filing separate VAT returns and remitting the withheld taxes to the NRS on or before the 14th day of the month immediately following the transaction. This remittance must be made in the transaction’s original currency and kept completely distinct from the agent’s standard VAT collections on their own taxable supplies.

Non-Compliance and Sanctions

The NRS is empowered to recover unremitted government revenue from any MDA by deducting the amount directly from that MDA’s budgetary allocation or other funds due to it. This action requires a warrant signed by the Executive Chairman of the NRS and approved by a Judicial Officer, in accordance with the Act’s Third Schedule. This provides a strong enforcement mechanism to ensure MDA compliance.

Record-Keeping Obligations

MDAs are also required to maintain a dedicated ledger account named the “VAT Withheld Account,” separate from its regular VAT accounts. Taxpayers must record all VAT withheld from suppliers to the credit of this account, record all remittances to the NRS as debits, and keep the complete ledger statement available for periodic NRS tax audits. This ensures auditing accountability and transparency.

Engagement with the NRS

MDAs are expected to collaborate with the NRS in the enforcement of tax laws. The functions of the NRS include liaison with the office of the Attorney-General of the Federation, any Government security and law enforcement agency, and such other financial supervisory institutions in the enforcement and eradication of tax related offences. MDAs are expected to cooperate with the NRS in these efforts.

Self-Charge of VAT

The NTA 2025 requires businesses to self-charge VAT on all vatable expenses or assets if vendors do not include it. MDAs, as taxable persons, are also subject to this requirement. This means that MDAs must ensure that VAT is properly charged and remitted on all taxable supplies they receive, even if the supplier does not charge it.

The Role of Tax Authorities

The Nigeria Revenue Service (NRS)

The Nigeria Revenue Service (NRS) is the central authority for tax administration in Nigeria, replacing the Federal Inland Revenue Service (FIRS). The Act formally rebrands the FIRS as the NRS, establishing it as the central authority for tax administration in Nigeria. The Act empowers the NRS to assess, collect, and account for revenue accruing to the Federation and upon request, to administer taxes on behalf of other relevant authorities.

Broadened Mandate: The Act broadens the powers of the NRS by requiring it to account for all government revenue, not just tax, and by including individuals within its tax assessment scope. Section 1 of the Act mandates that the Service account for all forms of revenue, not just tax, accruing to the government, significantly broadening its authority.

Stronger Enforcement Powers: The Act extends the powers of the NRS beyond National Assembly laws to any other law that expressly grants it similar authority. A key amendment removes the requirement for collaboration with law enforcement when conducting investigations, allowing for more streamlined and independent tax enforcement.

Cross-Border Tax Collection: Section 5 of the Act empowers the NRS to assist in tax collection and administration at both domestic and international levels for a fee. The cross-border provision highlights the country’s commitment to international tax compliance, ensuring fair treatment of foreign governments while supporting efficient global tax administration practices. It will also help prevent double taxation for entities operating in multiple jurisdictions and promote international business relations.

Funding and Financial Independence: Section 22 of the Act broadens the funding base of the NRS, allowing it to retain 4% of the total revenue collected (excluding petroleum royalty), as appropriated by the National Assembly, to fund its operations. This funding model reduces the NRS’s dependence on annual budgetary allocations and enhances its operational independence.

Tax Exemption: Section 29 of the Act exempts the NRS from all income taxes imposed under any law in Nigeria. However, what is not clear is whether the Service is also exempt from non-income taxes such as Value Added Tax. The NRS remains obligated to comply with withholding tax laws by deducting and remitting applicable taxes.

Secondment and Recruitment: Section 19 introduces a secondment programme that allows the NRS Board to recruit talent from within the civil service through secondment or transfer when necessary to fill vacancies. The Act also authorises the NRS to temporarily assign or post its staff to other agencies, organisations, or bodies under specific terms and condition.

Centralised Taxpayer Database: The NRS is required to maintain a centralised taxpayer database and issue Taxpayer Identification Numbers (TINs) in collaboration with state tax authorities and the Joint Revenue Board. This will help to streamline tax administration and reduce the incidence of multiple taxation.

Issuance of Guidelines: The NRS is empowered to issue rules and regulations as, in its opinion, are necessary or expedient for giving effect to the provisions of the Act and for the due administration of its provisions, and such rules and regulations shall provide compliance requirements and may include consequences for non-compliance in line with relevant laws. This includes the power to specify the form of returns, claims, statements or notices necessary for the due administration of the powers conferred on it by this Act.

Deployment of Technology: The NRS is also expected to deploy appropriate technology or digital platforms to automate any of its tax administration processes or in carrying out any of its functions under this Act. This includes the implementation of electronic invoicing, real-time reporting, and enhanced data integration systems.

State Internal Revenue Services (SIRS)

State Internal Revenue Services (SIRS) have a crucial role to play in implementing the new tax framework. The JRB Act provides for a tripartite governance structure that includes state tax authorities. The SIRS are responsible for administering state taxes, including Personal Income Tax (PIT) for individuals and entities, and for coordinating with the NRS and the JRB to ensure consistency in tax administration across the federation.

Local Government Revenue Committees

Under the new framework, Local Governments are expected to play a more active role in revenue administration. The harmonised Taxes and Levies Law, which has been domesticated by 15 states, is expected to bring greater efficiency, transparency, and accountability to revenue administration at both state and local government levels. The law allows Local Governments to voluntarily delegate the power of assessment and collection of their taxes and levies to State Governments, where such arrangement would deliver simpler, seamless, and more efficient outcomes.

The Joint Revenue Board (JRB)

The JRB is tasked with providing general policy guidelines, managing and superintending the policies of the Board, and reviewing and approving the strategic plans of the Board. It also has the power to employ and determine the terms and conditions of employment including disciplinary measures of the employees of the Board.

The Role of INEC (Independent National Electoral Commission)

Candidacy and Tax Compliance

While the Tax Acts do not explicitly mention INEC, the Independent National Electoral Commission plays a role in ensuring that candidates for public office are compliant with tax laws. Under existing laws and regulations, candidates for elective offices are required to provide evidence of tax compliance as part of their clearance to contest elections. This requirement may be reinforced under the new tax framework, making tax compliance a prerequisite for candidacy.

Voter Education and Public Awareness

INEC also has a role in public awareness and enlightenment campaigns on the benefits of tax compliance. The NRS is required to “carry out and sustain public awareness and enlightenment campaign on the benefits of tax compliance”. INEC, as a key electoral institution, could collaborate with the NRS and other agencies to educate citizens on their civic responsibilities, including the payment of taxes.

How Qeeva Advisory Helps You Navigate Tax Implementation

We understand that navigating the new tax laws can be complex. Many businesses and individuals are struggling to understand their obligations, comply with the new rules, and manage the transition from the old regime. Our professionals specialise in tax advisory, regulatory compliance, and business strategy.

Our Advisory Services Nigeria help you understand the new tax laws, develop compliance strategies, and implement systems that ensure you meet your obligations under the new framework.

Our Tax Strategies and Planning services help you navigate the new tax rates, incentives, and compliance requirements. We help you structure your business to take advantage of available reliefs and exemptions.

Our Regulatory Compliance services ensure your business meets all filing requirements and stays in good standing with the Nigeria Revenue Service and other tax authorities. We help you manage the transition from the old laws to the new framework.

Our Risk Management services help you identify and manage risks associated with tax compliance, including audits, investigations, and disputes.

And because tax compliance is about governance, our Corporate Compliance & Annual Returns Filing services help you maintain good standing with the Corporate Affairs Commission and other regulatory bodies.

Our Service Methodology

We do not do generic. We do thorough, transparent, and actionable.

Step 1: Tax Readiness Assessment
We assess your current tax practices, financial records, and compliance systems. We identify gaps, risks, and opportunities for improvement under the new tax laws. This step draws on our Advisory Services Nigeria expertise.

Step 2: Transition Planning
We help you develop a transition plan to move from the old tax regime to the new framework. We ensure that your tax returns, assessments, and disputes are properly handled. Our Tax Strategies and Planning team ensures your transition is smooth and compliant.

Step 3: Compliance Implementation
We help you implement compliance systems, including electronic invoicing, real-time reporting, and record-keeping. We ensure that your systems meet the requirements of the NTAA 2025.

Step 4: Dispute Resolution
If you have disputes with tax authorities, we provide expert representation. We help you navigate the objection and appeal processes under the new tax laws.

Step 5: Ongoing Monitoring and Support
Tax compliance is not a one-time exercise. We help you monitor changes in the law, update your systems, and stay current with regulatory developments. We provide ongoing support through our Advisory Services Nigeria , Regulatory Compliance , and Risk Management services.

Frequently Asked Questions

Q: When did the new tax laws take effect?
A: The Tax Acts 2025 took effect on January 1, 2026, with the Nigeria Tax Act 2025, the Nigeria Tax Administration Act 2025, the Nigeria Revenue Service (Establishment) Act 2025, and the Joint Revenue Board (Establishment) Act 2025 applying from their respective commencement dates.

Q: What is the Nigeria Revenue Service (NRS)?
A: The NRS is the central authority for tax administration in Nigeria, replacing the Federal Inland Revenue Service (FIRS). It is empowered to assess, collect, and account for revenue accruing to the Federation.

Q: What are the Transition Guidelines?
A: The General Transition Guidelines were issued by the Federal Ministry of Finance to provide direction on the implementation of the Tax Acts 2025. They cover the transition from repealed tax laws to the new framework, ensuring that the new laws are not applied retrospectively.

Q: How are existing tax incentives treated under the new laws?
A: Existing tax incentives and exemptions granted under the repealed laws will remain valid until their expiration dates, while new applications and pending requests will be considered under the provisions of the Tax Acts 2025.

Q: What role do MDAs play in the new tax system?
A: MDAs must withhold VAT on suppliers’ invoices, compile detailed schedules, and remit withheld taxes directly to the NRS. They are also required to maintain a dedicated “VAT Withheld Account” and comply with rigorous reporting procedures.

Q: What is the 4% Development Levy?
A: The 4% Development Levy is a new levy introduced under the NTA 2025 on assessable profits, replacing several sectoral levies. It applies to companies and is part of the broader tax reform package.

Q: How can Qeeva Advisory help with tax implementation?
A: We provide tax readiness assessment, transition planning, compliance implementation, dispute resolution, and ongoing monitoring to help businesses navigate the new tax laws.

The Bottom Line

Nigeria’s new tax laws represent a significant milestone in the country’s fiscal reform programme. The reforms are designed to make the system fairer, simpler, and more growth-friendly, shielding the most vulnerable while restoring fairness to the tax system. The success of these reforms depends not only on the quality of the legislation but on the effectiveness of its implementation across all institutions.

The President’s role in signing the laws into effect and appointing key officials is foundational. The Legislature’s oversight and confirmation powers ensure accountability. The Ministry of Finance’s transition guidelines provide clarity and certainty. MDAs’ compliance with withholding requirements ensures effective tax collection. The NRS’s broadened mandate and enhanced powers enable efficient tax administration. State and local tax authorities coordinate with the federal government to ensure uniformity. And INEC’s role in promoting tax compliance among candidates reinforces the link between civic responsibility and tax payment.

Your job is to be prepared. Understand the new laws. Comply with the filing requirements. Maintain proper records. Seek professional guidance to navigate the transition.

With the right approach and the right partner, you can turn tax compliance from a burden into a strategic advantage.

The choice is yours.

Suggested Reading from Our Blog

Basic Ethical Issues in Taxation Under Nigeria’s New Tax Laws – Explore the ethical challenges arising from Nigeria’s 2025 tax reforms, including procedural integrity, coercive enforcement powers, and fairness.

Assessment, Objections, Appeals, and Remittances in Nigerian Tax – Navigate the tax dispute resolution process under the NTAA 2025, including assessments, objections, appeals, and enforcement mechanisms.

Basis for Taxation of Enterprises in Free Trade Zones in Nigeria – Understand the legal basis for taxing Free Trade Zone enterprises under the NEPZA Act, OGFZA Act, and the NTA 2025 framework.

VAT Computation in Nigeria 2025 – Understand VAT compliance requirements under the new tax laws.

Related Services

Our Advisory Services Nigeria are staffed by professionals specialising in tax advisory, regulatory compliance, and business strategy.

Our Tax Strategies and Planning services help you navigate the new tax rates, incentives, and compliance requirements.

Our Regulatory Compliance services ensure your business meets all filing requirements and stays in good standing.

Our Risk Management services help you identify and manage risks associated with tax compliance.

Our Corporate Compliance & Annual Returns Filing services help you maintain good standing with the Corporate Affairs Commission.

Let’s Talk About Your Tax Implementation Needs

Navigating Nigeria’s new tax laws can feel overwhelming. At Qeeva Advisory, we understand the challenges businesses and individuals face under the new framework—from understanding the transition rules to complying with new filing requirements and managing the risk of audits and investigations.

Whether you need help understanding the new tax laws, developing a compliance strategy, managing the transition from the old regime, or representing you in disputes with tax authorities, we are here to support you.

📞 Call us: (+234) 802 320 0801, (+234) 807 576 5799
📧 Email: info@qeeva.com
📍 Visit us: 5, Ishola Bello Close, Off Iyalla Street, Alausa, Ikeja, Lagos, Nigeria

Contact us today to schedule a consultation. Let us help you navigate Nigeria’s new tax laws with confidence.

Your journey to tax compliance starts with a conversation. Let’s talk.

Reference Links / Sources

Federal Ministry of Information – Transition Guidelines for Tax Acts 2025

Mondaq – Overview of Key Provisions of the General Transition Guidelines

Mondaq – Nigeria Revenue Service (Establishment) Act 2025

Joint Revenue Board (Establishment) Act 2025 – Official Gazette

Federal Ministry of Finance – News

Regfollower – NRS Issues Guidelines on Capital Gains and VAT

Nigeria Revenue Service (Establishment) Act 2025 – Official Gazette

NESG – New Fiscal Framework: Key Provisions of Nigeria’s 2025 Tax Reform Laws

Newswatch – FG Issues Transition Guidelines for Tax Acts 2025

Voice of Nigeria – Commission, Stakeholders Back Nigeria Tax Act 2025

Mondaq – Tax Tuesday: Key Changes in the NRS Establishment Act 2025

Tribune Online – Harmonised Taxes & Levies Law to Strengthen LG Revenue Administration

TheCable – FG Issues Implementation Guidelines for Taxpayers, Revenue Agencies

Nigeria Info FM – Nigeria Issues Transition Guidelines for Tax Acts 2025

Mondaq – General Transition Guidelines for the Tax Acts – Implications for Taxpayers