The ambitious transition to a unified national tax system in Nigeria is hitting significant administrative roadblocks, risking delays and creating uncertainty for businesses and government agencies alike. Despite the formal rebranding of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS), effective implementation of the new tax architecture is being hampered by poor coordination and unclear directives.
Port Revenue Collection in a State of Limbo
Key agencies like the Nigeria Customs Service (NCS), Nigerian Ports Authority (NPA), and Nigerian Maritime Administration and Safety Agency (NIMASA) are operating without clear instructions on the new revenue administration framework. While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has already handed over royalty collection to the NRS, revenue collection at the ports is in a holding pattern. According to findings, harmonization at the ports is now dependent on the long-awaited rollout of the National Single Window (NSW) platform, scheduled for March 2026.
The NSW, first initiated by former Finance Minister Dr. Ngozi Okonjo-Iweala, has a history of being stalled by inter-agency rivalries. Although President Bola Tinubu committed to its launch this quarter, a definitive date remains unconfirmed as user acceptance testing began last year. A port official cited a persistent lack of coordination and communication of timelines to personnel critical for a seamless transition.
Agencies Await Government Direction
Official statements reflect the prevailing uncertainty. Dr. Abdullahi Maiwada, National Spokesperson for the NCS, stated that the government would establish an implementation committee to determine how the new revenue collection process would work. He emphasized the NCS is collaborating with the NRS to realize the NSW operationalization this quarter, integrating all Customs clearance processes into the platform.
Similarly, Ikechukwu Onyemekara, General Manager of Corporate and Strategic Communications at the NPA, described the implementation as not an "immediate action." He advised waiting for a federal government directive, indicating that normal implementation would require time, and all revenue-generating agencies would comply with the new laws.
This operational confusion is palpable among port users. Operators from the Barge Operators Association of Nigeria (BOAN) and the Association of West African Exporters and Maritime Professionals (AWAEMAP) confirm that since January 1, 2026—the official start date for the NRS framework—nothing has changed on the ground. Statutory charges are still being paid directly to NPA, NIMASA, and the NCS as before, with no official notices on new payment channels to the NRS.
Policy Intent vs. Execution Reality
The reform, enacted through four new Acts including the Nigeria Revenue Service (Establishment) Act, 2025, designates the NRS as the sole agency for assessing and collecting federal revenues. The goal is to allow agencies like Customs to focus on core mandates like trade facilitation and border security. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has consistently defended the laws, highlighting provisions to eliminate multiple taxation, protect small businesses, and sanction unauthorized levies.
However, experts note that markets are sensitive to process and institutional coherence, not just policy intent. The initial ambiguity and legal controversies—though partly addressed by the National Assembly's release of certified true copies of the bills—risk creating lasting negative investor perceptions. Organized private sector groups have expressed mixed reactions, welcoming harmonization goals but cautioning that eliminating multiple taxation, especially at the federal-state interface, may not be immediate.
Professor Godwin Oyedokun of Lead City University argues the controversy stems more from fear and poor understanding than outright rejection. He identifies communication as a major weakness. The reform aims to raise Nigeria's tax-to-GDP ratio from about 13% at the end of 2025 to 18% by 2027, a target seen as achievable given the FIRS's record collections of N22.59 trillion by September 2025.
In the near term, experts anticipate compliance delays, cautious capital expenditure, and potential disputes. For long-term success, they urge the Federal Government to consider a phased implementation. This approach would allow time to educate the vast informal sector and demonstrate government sincerity through transparency and the effective use of tax revenue for public amenities.
