Nigeria Revenue Service has officially taken full control of Value Added Tax (VAT) collection in Nigeria, marking the exit of the Nigeria Customs Service from import VAT collection.
Also, This move is part of Nigeria’s broader tax reform agenda, aiming to simplify revenue administration and reduce duplication across agencies.
Customs Collection Drops to Zero
However, Fiscal data shows a dramatic shift:
- December 2025: Customs collected N3.84 billion in import VAT
- January 2026: Customs collection dropped to N0
This reflects the full transfer of VAT responsibilities to the NRS under the new tax laws enacted on January 1, 2026.
The Tax Reform Behind the Change
The sweeping tax reforms are designed to:
- Harmonize revenue collection across federal agencies
- Eliminate overlaps and inefficiencies
- Strengthen compliance and transparency
According to KPMG Assets, the reforms also aim to integrate digital solutions and centralize administration, modernizing Nigeria’s tax system for the 21st century.
NRS Powers Expanded
Previously known as the Federal Inland Revenue Service (FIRS), the NRS now has broader powers to assess, collect, and account for federally accruable taxes, including:
- Value Added Tax (VAT)
- Corporate income tax
- Other federally mandated levies
The agency is expected to improve efficiency, reduce leakages, and enhance revenue mobilization for government projects.
Impact on Businesses and Consumers
However, For businesses and consumers, the shift means:
- Centralized VAT administration
- Clearer compliance requirements
- Potentially faster processing of VAT payments and refunds
Furthermore, Experts suggest that digital integration under Nigeria Revenue Service could further simplify tax reporting and reduce bureaucratic hurdles
With Customs stepping back, the NRS now stands as the central authority for VAT, signaling a major step in Nigeria’s tax modernization efforts.
The reforms promise a more efficient, transparent, and accountable tax system, benefiting both the government and taxpayers across the country.
