ANALYSIS OF THE IMPACT OF NIGERIA REVENUE SERVICE ESTABLISHMENT ACT 2025 WITH LESSONS FROM SIMILAR JURISDICTIONS

Abstract

The Nigeria Revenue Service Establishment Act 2025 marks one of the most ambitious attempts at restructuring Nigeria‘s tax administration since the return to democratic rule. By dissolving the Federal Inland Revenue Service and establishing the Nigeria Revenue Service (NRS), the reform seeks to enhance efficiency, transparency, and taxpayer confidence in the country‘s fiscal system. This article adopts doctrinal method of legal research to examine the legal and institutional innovations introduced by the Act, particularly the creation of the Tax Ombudsman, the reorganisation of enforcement powers, and the integration of digital compliance mechanisms. While these measures promise a more effective collection framework and improved taxpayer protection, they also raise important constitutional, administrative, and practical questions. The paper argues that without clear safeguards, the expanded powers of the NRS may result in overreach, potentially undermining taxpayer rights and the principle of fair hearing. Comparative insights are drawn from South Africa, Kenya, and Ghana to highlight best practices and cautionary lessons. The article concludes by recommending targeted legal and institutional reforms to ensure that the new tax regime balances Nigeria‘s urgent revenue needs with the imperatives of fairness, accountability, and sustainable economic governance.