President Bola Tinubu is planning a significant overhaul of Nigeria’s revenue collection system, which could see over 60 revenue-generating agencies, including the Nigerian Customs Service and Nigerian Ports Authority (NPA), stripped of their revenue collection duties. In their place, a new single body—the Nigeria Revenue Service—would be established to centralize and manage all federal revenue collections.
This move is part of a broader fiscal reform agenda aimed at boosting Nigeria’s revenue generation and efficiency. On Thursday, President Tinubu submitted four executive bills to the National Assembly, seeking approval for a series of tax reforms. These proposals are designed to streamline tax collection and reduce reliance on external borrowing by enhancing the country’s tax-to-GDP ratio, which currently stands among the lowest globally.
The Nigeria Revenue Service, once established, will take over revenue collection from agencies such as the Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Ports Authority, Nigeria Customs Service, Federal Airports Authority of Nigeria (FAAN), and the Federal Inland Revenue Service (FIRS), among others. These agencies would then focus on their core mandates, such as trade facilitation and regulatory functions.
“There is no merger of agencies,” a source from the Presidency clarified. “The plan is to transfer only the revenue collection duties to the Nigeria Revenue Service, allowing other agencies like NIMASA and Customs to focus on their core roles.”
The proposed bill seeks to rename the Federal Inland Revenue Service as the Nigeria Revenue Service, which will be responsible for assessing, collecting, and accounting for all government revenues. Alongside this, three other tax-related bills were submitted under the banner of ‘Transmission of Fiscal Policy and Tax Reform Bills,’ including provisions for a new Joint Revenue Board and the establishment of a Tax Tribunal and Ombudsman to resolve tax-related disputes.
These reforms are based on recommendations from the Presidential Fiscal Policy and Tax Reforms Committee led by Taiwo Oyedele, which advocated reducing the number of taxes from the current 62 to a maximum of nine. The proposed changes are also aligned with the objectives of the President Tinubu Policy Advisory Council, which has called for an overhaul of Nigeria’s revenue generation approach.
Despite the government’s intentions, some industry stakeholders have expressed concern. Dr. Eugene Nweke, a former National President of the National Association of Government Approved Freight Forwarders, criticized the plan, arguing that Customs worldwide are traditionally responsible for revenue collection. He also warned of potential complexities in outsourcing such a critical function.
Similarly, Taiwo Fatobilola, National Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria, expressed skepticism, stating, “Revenue collection is not something that anyone can just step into. It requires specialized training, something the Nigerian Customs Service has been equipped to do.”
The Nigeria Customs Service’s spokesperson, Abdullahi Maiwada, however, said he was unaware of the proposed changes.
These sweeping reforms reflect the government’s commitment to addressing Nigeria’s fiscal challenges, as the country grapples with underperforming revenue systems, which have led to budget deficits and increased borrowing. With the goal of achieving an 18% tax-to-GDP ratio, the government hopes these measures will strengthen the country’s fiscal sustainability while promoting economic growth and investment.
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