Nigeria Revenue Service (Establishment) Act, 2025

Objective

The objective of this Act is to provide for a legal, institutional and regulatory framework for the administration of taxes and revenues accruable to the Government of the Federation, as prescribed by the National Assembly.

Application

This Act applies throughout the Federal Republic of Nigeria.

Establishment of the Nigeria Revenue Service

(1) There is established the Nigeria Revenue Service ("the Service") –

(2) The Service –

(a) shall be a body corporate with perpetual succession, and a common seal;

(b) may sue or be sued in its name; and

(c) may acquire, hold or dispose of any property, movable or immovable, for carrying out any of its functions under this Act.

(3) The Service shall have such powers and duties as are conferred on it by this Act or by any other law.

Assistance in tax collection

(1) The Service may, on request, assist a Nigerian State or Local Government to collect or administer a tax.

(2) The assistance referred to in subsection (1) of this section, shall only be provided in respect of a tax which the requesting government has the statutory right to collect or administer, and such assistance may include —

(a) all the actions necessary for the proper assessment, collection, accounting or enforcement of the tax;

(b) administration of personal income tax on any class or group of individual taxpayers; or

(c) collection or enforcement of revenue claims on a particular person.

(3) Any revenue collected on behalf of a State or Local Government, or another tax authority, under this section, shall be remitted directly to that State or Local Government, or relevant tax authority as may be agreed by the parties.

(4) Where an agreement or arrangement between the Government of Nigeria and the Government of another country to avoid double taxation or provide administrative assistance in tax matters contains an obligation for the collection of revenue claim due to the Government of that country or any other administrative assistance on tax, the Service shall carry out such obligation as may be prescribed in that agreement or arrangement.

(5) The Service may enter into agreement with the competent authority of a country with which the Government of Nigeria entered into an agreement or arrangement for the avoidance of double taxation or administrative assistance in tax matters to prescribe the manner of the performance of the administrative assistance obligation contained in that agreement or arrangement.

(6) The Accountant-General of the Federation shall open a designated account into which revenue claims collected by the Service on behalf of the Government of any other country shall be paid pending the remittance of the amount so collected to that country.

(7) Where assistance is requested under this section, the Service shall carry out the assistance in line with the provisions of this Act and other relevant laws, except with respect to time limits, and shall apply its powers relating to the enforcement and collection of taxes as if the revenue were a revenue within its jurisdiction under the Nigeria Tax Administration Act.

(8) The Service may take any interim measure, including any judicial measure, in line with the provisions of this Act or other relevant laws to preserve the collection of any revenue claim for which assistance has been requested under this section.

(9) The Service may charge a fee as may be agreed with the requesting authority to defray the cost of providing the assistance required under this section.

(10) For the purpose of this section, "revenue claim" means any amount of tax, levy, fees, charges or statutory contributions, due or owed, including interest, administrative penalties, and cost of collection or conservancy to a Nigerian local or state government and their agencies, or to the government of another country with which the Government of Nigeria has a subsisting agreement or arrangement to avoid double taxation or provide administrative assistance in tax matters.

Establishment of the Governing Board

There is established for the Service, a governing board known as the Nigeria Revenue Service Board ("the Board") which shall have overall supervision of the Service as specified in this Act.

Composition of the Board

(1) The Board shall consist of —

(a) the Chairman, who shall be the Executive Chairman of the Service appointed by the President subject to confirmation of the Senate;

(b) the following ex-officio members —

(i) a representative of the Minister responsible for Finance not below the rank of a Director,

(ii) a representative of the Minister responsible for National Planning not below the rank of a Director,

(iii) a representative of the Attorney-General of the Federation not below the rank of a Director,

(iv) a representative of the Minister responsible for Petroleum and Gas Resources not below the rank of a Director,

(v) the Governor of the Central Bank of Nigeria or a representative not below the rank of a Deputy Governor,

(vi) the Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission or a representative who shall be a Commissioner representing one of the States of the Federation,

(vii) the Comptroller-General of the Nigeria Custom Service or a representative not below the rank of Deputy Comptroller-General,

(viii) the Registrar-General of the Corporate Affairs Commission or a representative not below the rank of a Director, and

(ix) Executive Directors appointed by the President under this Act.

(2) All members of the Board, except the Executive Chairman, and the Executive Directors shall serve on a part-time basis.

(3) The supplementary provisions set out in the First Schedule to this Act shall have effect with respect to the proceedings of the Board and other matters mentioned therein.

Powers of the Board

The Board shall —

(a) provide general policy guidelines relating to the functions of the Service;

(b) evaluate the implementation of the policies of the Service on matters relating to the assessment, collection and accounting system under this Part or any other law;

(c) review and approve the strategic plans of the Service;

(d) employ staff, and determine the terms and conditions of service, including disciplinary measures, of the employees of the Service;

(e) stipulate remunerations, allowances, benefits and pensions of the staff and employees;

(f) with the approval of the Minister, make rules and issue regulations as, in its opinion, are necessary or expedient for giving effect to the provisions of this Part and for the administration of its provisions and such rules and regulations shall provide compliance requirements and may include consequences for noncompliance;

(g) assign each Executive Director a directorate as appropriate;

(h) do such other things which, in its opinion, are necessary to ensure the efficient performance of the functions of the Service under this section.

Tenure of office

(1) The Executive Chairman and other members of the Board, other than ex-officio members, shall each hold office for a term of four years, renewable for another term of four years and no more.

(2) A member of the Board shall hold office on such terms and conditions as in his letter of appointment.

Emoluments of members

All members of the Board shall be paid such emoluments, allowances and benefits as may be determined by the Service in collaboration with the National Salaries, Incomes and Wages Commission.

Cessation of membership

A person shall cease to be a member of the Board, where the person —

(a) not being an ex-officio member, resigns by a notice addressed to the President;

(b) dies or becomes incapable of carrying on the functions of the office either arising from an infirmity of body, or mind;

(c) becomes bankrupt or makes a compromise with creditors;

(d) is convicted of a felony or of any offence involving dishonesty or fraud;

(e) not being an ex-officio member, is removed from office by the President on grounds of public interest or in the interest of the Service;

(f) has been found guilty of contravening the Code of Conduct Bureau and Tribunal Act, or gross misconduct in relation to their duties;

(g) in the case of a person appointed on the basis of a professional qualification is disqualified from professional qualification by a competent authority;

(h) the President is satisfied that it is not in the interest of the Service or in the interest of the public for the person to continue in Office and the President removes him from Office;

(i) not being an ex-officio member, the tenure expires as provided in section 9 (2) of this Act; or

(j) ceases to occupy the office by virtue of which the person becomes a member of the Board.

Delegation of power

(1) Any power conferred or any duty imposed upon the Board may be exercised or performed by the Board or by an officer authorised by the Board, generally or specifically in that behalf.

(2) The Board may review any decision made by an authorised officer regarding any tax or taxable income, and the reviewed decision of the Board shall have effect as if it were the original decision made in respect of the matter concerned.

(3) An order, ruling or directive made or given by an approved committee of the Board pursuant to this section shall not be treated as an order, ruling or directive of the Board, until the order, ruling or directive has been ratified by the Board pursuant to the powers vested on the Board under this Act.

Secretary to the Board

(1) There shall be a Secretary to the Board who shall be appointed by the Board from within the Service.

(2) The Secretary shall be a lawyer, or a chartered accountant or a chartered secretary, who shall not be less than the rank of an Assistant Director.

(3) The Secretary shall be responsible for —

(a) issuing notices of meetings of the Board;

(b) keeping records of the proceedings of the Board; and

(c) carrying out such other duties as the Executive Chairman or the Board may direct.

Establishment of Technical Committee of the Board

(1) There shall be a technical committee of the Board ("the Technical Committee") which shall consist of —

(a) the Executive Chairman as the Chairman;

(b) two members of the Board of the Service;

(c) the Executive Directors in the Service;

(d) the Director Legal of the Service as appointed by the Board;

(e) the Director in charge of Tax Policy matters.

(2) The Secretary to the Board shall be the Secretary to the Technical Committee.

(3) The Technical Committee may co-opt, from the Service, such director or officer as it may deem necessary for the effective performance of its functions under this Act.

Functions of the Technical Committee

The Technical Committee shall —

(a) consider all tax matters that require professional or technical expertise, and make recommendations to the Board;

(b) advise the Board on any aspect of the functions and powers of the Service under this Act; and

(c) attend to such other matters as may be referred to it by the Board.

Executive Chairman of the Service

The Executive Chairman shall —

(a) be appointed by the President subject to confirmation by the Senate;

(b) be the chief executive and accounting officer of the service;

(c) be responsible for the execution of the policies and the overall administration of the Service; and

(d) have relevant qualifications, cognate experience and expertise in accountancy, economics, taxation or law.

Executive Directors of the Service

(1) The President shall appoint six Executive Directors for the Service, each representing a geopolitical zone on rotational basis among the states in the zone in alphabetical order provided that the Executive chairman and an Executive Director shall not come from the same state.

(2) An Executive Director appointed under subsection (1) shall possess academic or professional qualifications and expertise in taxation, accountancy, economics, law, human resource management, or information technology, and the appointment shall ensure diversity of acedemic or professional qualifications and expertise in the listed fields.

(3) An Executive Director shall —

(a) head, and be responsible for the day-to-day administration of a Directorate in the Service; and

(b) perform all such duties or functions as may, from time to time, be required by the Board, Management or Executive Chairman of the Service.

(4) An Executive Director shall hold office for a term of four years and may be renewed for a further term of four years and no more.

(5) An Executive Director shall be paid such remuneration and allowances, as may be determined by the Board.

(6) An Executive Director shall, as provided in this Act, be subject to the terms and conditions of his appointment.

(7) Notwithstanding the provisions of subsection (4), an Executive Director shall cease to hold office as an Executive Director of the Service, where the —

(a) person resigns by a notice, under his hand, and addressed to the President through the Executive Chairman;

(b) person becomes incapable of carrying on the functions of the office either arising from an infirmity of body or mind;

(c) person is convicted of a felony or any offence involving dishonesty or fraud; or

(d) President is satisfied that it is not in the interest of the Service or in the interest of the public for the person to continue in office, and the Board removes such person from office.

(8) For the purpose of this section, "Directorate" means a group of departments, divisions or units functionally related and aligned with the aim of performing a given function or set of functions relevant to the realisation of the goals of the Service.

Establishment and composition of the Management Committee

(1) There is established for the Service a management committee known as the Nigeria Revenue Service Management Committee ("the Management") which shall be responsible for policy implementation, and supervision of the day-to-day activities of the Service.

(2) The Management shall consist of the —

(a) Executive Chairman of the Service, who shall be the head; and

(b) Executive Directors appointed under this Act.

Staff of the Service

(1) The Board may appoint such other persons to be employees of the Service for the proper and efficient performance of the functions of the Service under this Act and on such terms and conditions as may be prescribed by the Board.

(2) Where the Board thinks it expedient that any vacancy in the Service should be filled by a person holding office in the Civil Service of the Federation or of a State, it shall notify the appropriate Civil Service to that effect and thereafter the Board, may, by arrangement with the Civil Service Commission concerned, cause such vacancy to be filled by way of secondment or transfer.

(3) On grounds of public policy or for the purpose of capacity building or comparative experience, the Service may approve a temporary stay of any staff of the Service with agencies, organisations or other bodies subject to such terms and conditions as the Service may deem fit.

(4) The Service may engage relevant professional consultants, or agents to transact any business or to do any act required to be transacted or done in the execution of its functions under this Act, provided that such consultants shall not carry out the duties of assessment or collection of tax, tax compliance or enforcement activities, or routine responsibilities of tax officials.

Pensions

(1) Employment in the Service shall be subject to the provisions of the Pension Reform Act, and an officer or a person holding pensionable employment in the Service shall be entitled to pensions and other retirement benefits as prescribed under the Pension Reform Act.

(2) Notwithstanding the provisions of subsection (1) of this section, nothing shall prevent the Board from appointing any person to any office on terms which preclude the grant of pensions or other retirement benefits.

(3) For the purpose of the application of the provisions of the Pension Reform Act, any power exercisable by a Minister or other authority of the Government of the Federation, not being the power to make regulations, is vested in and shall be exercisable by the Board.

Staff regulations

(1) Subject to the provisions of this Act, the Board may make regulations relating generally to the conditions of service of the staff and, in particular, such regulations may provide for the appointment, promotion, discipline, termination or dismissal of staff or employees of the Service.

(2) The staff regulations made under subsection (1) shall be issued to its staff in such manner as the Service may from time to time determine.

Fund of the Service

The Service shall establish and maintain a fund which shall consist of, and to which shall be credited —

(a) four (4) per cent of the total revenue, less petroleum royalty, collected by the Service, which shall be appropriated by the National Assembly for the capital and recurrent expenditures of the Service;

(b) all sums of money accruing to the Service by way of grants-in-aid, gifts, testamentary dispositions, endowments and contributions from any source;

(c) such moneys as may be granted to the Service by the Federal, State or Local Governments or other donor agencies, provided such grants are not intended for purposes contrary to the objective of the Act or functions of the Service; and

(d) all other moneys which may, from time to time, accrue to the Service from other sources, including charges for assistance in tax collection, the disposal, lease or hire of, or any other dealing with, any property vested in or acquired by the Service.

Expenditure of the Service

The Fund established under section 22 of this Act shall be used for —

(a) acquisition and upkeep of premises belonging to the Service and any other capital expenditure of the Service;

(b) costs necessary for the day-to-day operations of the Service;

(c) investments, maintenance of utilities, staff promotion, training, research and similar activities;

(d) emoluments and allowances payable to the Executive Chairman and other members of the Board;

(e) reimbursements to members of the Board or any committee set up by the Board for such expenses as may be expressly authorised by the Service;

(f) remunerations and other costs of employment of the staff of the Service;

(g) pensions and other retirement benefits under or pursuant to this Act or any other law;

(h) all sums of money payable by the Service by way of grants-in-aids, gifts, testamentary dispositions, endowments, etc.; and

(i) any other payment for anything incidental to the foregoing provisions or in connection with or incidental to any other function of the Service under this Act.

Estimates

The Service shall prepare, not later than 30th September in each year, an estimate of its income and expenditure for the succeeding year for the purpose of appropriation by the National Assembly.

Accounts and audit

(1) The Service shall keep proper accounts and records, and such accounts shall, not later than six months after the end of each year, be audited by auditors appointed by the Board from the list and in accordance with the guidelines supplied by the Auditor-General for the Federation.

(2) The Service shall, through the relevant committee, submit to the National Assembly, quarterly and annual reports on its activities, performance, and financial statements.

(3) The reports specified in subsection (2) of this section shall include the detailed account of revenue collection, expenditure, policy implementation progress, and compliance with national fiscal objectives, and such other details as the National Assembly may require.

Annual report

(1) The Service shall, not later than 30 June each year, submit to the Minister, a report of its activities during the immediate preceding year and shall include in such report the audited accounts of the Service.

(2) The Minister shall within 30 days of receipt of the report present a copy of the report to the —

(a) Federal Executive Council; and

(b) National Assembly.

(3) Upon receipt of the report in subsection (2)(b) of this section, the National Assembly may summon the Executive Chairman or members of the Board in respect of matters relating to the administration, governance, and financial management of the Service.

Power to accept gifts

(1) Subject to subsection (2) of this section, the Service may accept gifts of land, money or other property on such terms and conditions, if any, as may be specified by the person or organisation making the gift.

(2) The Service shall not accept any gift if the conditions attached are inconsistent with any law.

Power to borrow

The Service may borrow by way of loan, overdraft or otherwise from any source, such sums as it may require for the performance of its functions and meeting of its obligations under this Act. Provided that the Service shall, prior to such borrowing, obtain the approval of the Federal Executive Council and the National Assembly

Tax exemptions

The Service is exempt from all income taxes imposed under any law in Nigeria provided that the exemption shall not relieve the Service from the statutory obligation to deduct and remit taxes as may be required by the relevant tax laws

Accountability

The Executive Chairman of the Service shall —

(a) keep proper accounting records in a manner determined by the Board or relevant law, in respect of all —

(i) revenues and expenditure of the Service,

(ii) its assets, liabilities and other financial transactions, and

(iii) other revenues collected by the Service, including income on investments;

(b) prepare an annual report, including financial statements, in accordance with generally accepted accounting principles and practices;

(c) ensure that the available accounting resources of the Service are adequate and used economically in the most effective and efficient manner, and the accounting and other financial records are properly safeguarded; and

(d) submit to the Minister and National Assembly in exercise of their supervisory authority —

(i) strategic plans and annual budgets,

(ii) regular reports and updates on the performance of the Service, and

(iii) other information as may be required.

(2) The Minister shall have the powers to make recommendations as necessary to ensure fiscal discipline, alignment with national economic priori-ties and efficiency of the Service.

(3) The Executive Chairman shall submit progress reports to the Minister and National Assembly, following implementation of the recommendations received in subsection (2) of this section.

General directions of the Minister

(1) The Minister may, after consultation with the Executive Chairman, give written directions to the Service on general policy matters and the Service shall comply with such directions.

(2) The Minister shall not give any direction in respect of any particular person which would have the effect of requiring the Service to increase or decrease any assessment of tax made or to be made or any relief given or to be given or to defer the collection of any tax or judgement debt due, or which would have the effect of initiating, forbidding the initiation of, withdrawing or altering the normal course of any legal proceeding, relating either to the recovery of any tax or to any offence under any of the tax laws listed in the Second Schedule. (3) In any legal proceeding under this Act or any of the laws administered by the Service, any act or thing done by the Service or the Board in pursuance of any of the laws referred to in subsection (2) of this section shall not be subject to challenge on the ground that such act or thing done was not proved to be in accordance with any direction given by the Minister, except on general policy matters under subsection (1) of this section.

Information and documents to be confidential

(1) Without prejudice to the provisions of any other Act concerning data privacy or data protection, institutional information or communication, all internal information, communications, documents or memoranda of the Service are confidential.

(2) Except as otherwise provided under this Act, any other law or any enabling agreement or arrangement or as otherwise authorised by the Executive Chairman or management of the Service, any person who discloses or attempts to disclose institutional information, communication, document or memorandum of the Service is liable on conviction to a fine not exceeding N5,000,000.00 or to imprisonment for a term not exceeding three years or to both fine and imprisonment.

Endorsement

Anything done or required to be done by the Service pursuant to any of its powers or functions under this Act or the laws listed in the Second Schedule may be endorsed by the Executive Chairman or an authorised officer of the Service.

Limitation of suits against the Service

(1) Subject to the provisions of this Act, the provisions of the Public Officers Protection Act shall apply in relation to any suit instituted against any member of the Board, the Executive Chairman, officer or employee of the Service or the Service.

(2) Notwithstanding anything contained in any other law, no suit against the Service, Executive Chairman, member of the Board, or any other officer or employee of the Service for any act done in pursuance of this Act, any other law, any public duty or authority, or in respect of any alleged neglect or default in the execution of the provisions of this Act, shall lie or be instituted in any court unless it is commenced -

(a) within three months after the act, neglect or default complained of; or

(b) in the case of a continuation of damage or injury, within six months after the ceasing of such damage or injury.

(3) No suit shall be commenced against the Service, Executive Chairman, a member of the Board, or any other officer or employee of the Service before the expiration of one month after written notice of intention to commence the suit shall have been served on it by the intending plaintiff or his agent.

(4) The notice referred to in subsection (3) of this section shall clearly state the —

(a) cause of action;

(b) particulars of claim;

(c) name and place of abode of the intending plaintiff; and

(d) relief to be claimed.

Service of documents

A notice, summons or other document required or authorised to be served on the Service under the provisions of this Act or any other law may be served by delivering it to the Executive Chairman, sending it by registered post, courier or substituted service addressed to the Executive Chairman at the principal office of the Service, delivered to a designated email address of the Service, or other electronic means as may be provided by the Service.

Restriction on execution against property of the Service

(1) In any action or suit against the Service, no execution or attachment of process in the nature thereof shall be issued against the Service unless, at least, three months' notice of the intention to execute or attach has been given to the Service.

(2) Any sum of money which by the judgement of any court has been awarded against the Service shall, subject to any direction given by the court, where no notice of appeal against the judgement has been given, be paid from the fund of the Service.

Indemnity

The Executive Chairman, Executive Director, member of the Board or any officer or employee of the Service shall be indemnified out of the assets of the Service against any liability incurred in defending any legal proceeding, brought against them in their capacity as Executive Chairman, member of the Board, officer or other employee of the Service.

Accountant-General to deduct un-remitted revenue

The Accountant-General of the Federation shall, not later than 30 days of receiving a warrant endorsed by the Executive Chairman of the Service and approved by a judicial officer in accordance with the Third Schedule to this Act, deduct un-remitted revenue due from any Ministry, Department, Agency of Government from its annual budgetary allocation or such other money accruing to it, and shall remit the deductions to the Service.

Interpretation

In this Act — "Authorised Officer" means any person employed in the Service or, for the time being, performing duties in relation to tax who has been specifically authorized by the Board or the Executive Chairman to perform or carry out specific functions under this Act; "Board" the Governing Board of the Service established under section 6 of this Act; "Executive Director" refers to the Executive Director appointed under section 17 of this Act;

Short tittle

This Act may be cited as the Nigeria Revenue Service (Establishment) Act, 2025.