Tax Reform Faces Delays Over Poor Coordination, Unclear Timelines

Despite the quick transition of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS), the full implementation of Nigeria’s new tax framework may face delays due to slow administrative processes, weak coordination among agencies and unclear execution timelines.

Although the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has already stopped collecting royalties and handed the function to the NRS, port revenue collections are unlikely to change until the National Single Window (NSW) system becomes operational, possibly in March. The NSW platform, first conceived during the tenure of former finance minister Dr. Ngozi Okonjo-Iweala, has suffered repeated delays due to inter-agency rivalry but is expected to roll out this quarter. However, there is still no confirmed date.

There are growing concerns that key agencies such as the Nigeria Customs Service (NCS), Nigerian Ports Authority (NPA) and Nigerian Maritime Administration and Safety Agency (NIMASA) are yet to receive clear directives on how to transition their revenue roles to the NRS. Some officials also hinted that critical operational timelines have not been communicated, creating confusion.

NCS spokesman, Dr Abdullahi Maiwada, said the Federal Government would set up an inter-ministerial committee to guide the implementation of the new system, noting that customs processes will eventually be integrated into the NSW. NPA spokesperson Ikechukwu Onyemekara added that implementation would not be immediate, stressing that agencies will comply when government officially begins enforcement.

The new tax laws, Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, National Revenue Service Act 2025, and Joint Revenue Board Act 2025, mandate the NRS as the sole national revenue collector, consolidating functions previously handled by NCS, NPA, NUPRC and others. The reform aims to eliminate multiple taxation, improve efficiency, strengthen public finances and allow agencies to focus on core mandates like border security and trade facilitation.

However, businesses remain uneasy about execution clarity and legal certainty, while investors worry about policy stability. Though the National Assembly insists the laws were not altered and has released certified copies, analysts warn that early confusion can damage investor confidence.

Mixed reactions continue to trail the reforms within the private sector. While stakeholders support tax harmonisation, they fear multiple taxation may persist, especially between federal and state levels, if implementation is not carefully managed.

At the ports, operators confirm that payments are still being made to NCS, NPA and NIMASA as before, with no official directive on switching to the NRS platform. Freight forwarders also report continued payments into Customs accounts, though now linked to the emerging central revenue structure.

Experts are urging government to adopt a phased implementation strategy, beginning with the formal sector, while intensifying public sensitisation to build trust. They argue that Nigerians’ resistance is driven more by fear and poor communication than outright rejection of taxation.

Nigeria’s tax-to-GDP currently stands at about 13 per cent, below countries like South Africa (25%), Senegal (19.6%), Egypt (16.5%) and Ghana (15%). Government hopes to reach 18 per cent by 2027, leveraging recent revenue gains recorded by FIRS, which collected N10.1 trillion in 2022, N12.37 trillion in 2023, N21.6 trillion in 2024 and N22.59 trillion by September 2025.

Experts agree the reforms could eventually stabilise Nigeria’s fiscal system, if legal ambiguities are resolved, timelines are clear, agencies cooperate and enforcement is fair and transparent. Until then, uncertainty may persist across the business and maritime sectors.