…To Rename FIRS as Nigeria Revenue Service by January 2026
The Federal Government has directed banks and other financial institutions in Nigeria to begin submitting detailed monthly reports of high-value transactions to tax authorities, as part of an intensified crackdown on tax evasion and illicit financial flows.
According to provisions under the newly amended Nigerian Tax Act, effective from January 2026, banks will be required to report all individual transactions exceeding ₦25 million and corporate transactions surpassing ₦100 million within a single month to the Federal Inland Revenue Service (FIRS), which will be rebranded as the Nigeria Revenue Service (NRS).
The law mandates financial institutions — including insurance companies, stockbrokers, and other related entities — to file quarterly returns to the tax authority.
These must include the full names and addresses of both new and existing customers whose cumulative monthly transactions hit the set thresholds.
“Every person who has an obligation to deduct and remit tax under this Act… shall render monthly returns to the appropriate tax authority,” the Act states.
The move marks a significant shift from the previous reporting benchmark of ₦5 million deposits and is seen as part of efforts to bolster tax compliance, improve revenue collection, and strengthen the country’s anti-money laundering framework.
Analysts say the policy will not only help tackle tax evasion but also aid in tracking illicit financial flows in the system.
In 2023, Nigeria was placed on the Financial Action Task Force (FATF) grey list due to weaknesses in its anti-money laundering and counter-terrorist financing mechanisms.
The grey list subjects affected countries to increased scrutiny from international financial bodies.
However, in a 2024 update, the Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), Hafsat Bakari, announced that Nigeria had made notable progress, achieving improvements in five key FATF recommendations.
The latest tax compliance measure is believed to be one of the conditions being met to fast-track Nigeria’s removal from the FATF grey list.
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