The Federal Inland Revenue Service (FIRS) is one of Nigeria’s most important government agencies. It is charged with the responsibility of assessing, collecting, and accounting for tax revenues that are due to the federal government.
Nigeria continues to diversify its economy and strengthen its revenue systems, the duties of FIRS have become even more significant. Here’s a detailed breakdown of the official roles and responsibilities of the FIRS.
What is FIRS?
The Federal Inland Revenue Service (FIRS) is the primary agency responsible for tax administration in Nigeria. It operates under the supervision of the Federal Ministry of Finance and is empowered by several legal frameworks, including the FIRS (Establishment) Act, 2007.
FIRS works to ensure that all taxable persons and organizations comply with national tax laws while also fostering a tax culture that supports economic growth.
Official Duties and Responsibilities of the FIRS
Below are the key functions assigned to the FIRS by law and practice:
1. Tax Assessment
FIRS is responsible for determining the amount of tax payable by individuals, companies, and organizations based on their earnings, transactions, and financial statements.
2. Tax Collection
The core duty of FIRS is to collect taxes on behalf of the Federal Government. These include:
- Companies Income Tax (CIT)
- Petroleum Profits Tax (PPT)
- Value Added Tax (VAT)
- Capital Gains Tax (CGT)
- Stamp Duties
- Education Tax
- Personal Income Tax (for Abuja and armed forces, police, etc.)
3. Accounting for Tax Revenues
FIRS ensures that all taxes collected are accurately accounted for and remitted to the appropriate government treasury accounts.
4. Enforcement of Tax Laws
FIRS is authorized to enforce compliance with Nigeria’s tax laws. This includes conducting audits, investigations, and prosecuting offenders involved in tax evasion or fraud.
5. Issuance of Taxpayer Identification Numbers (TIN)
The agency manages the registration and issuance of TINs, which are mandatory for individuals and businesses to pay taxes in Nigeria.
6. Educating and Enlightening Taxpayers
FIRS conducts public sensitization and taxpayer education campaigns to encourage voluntary compliance and broaden the tax net.
7. Advising the Federal Government on Tax Policies
FIRS plays an advisory role by providing expert insights to the federal government on tax reform, administration, and policy formulation.
8. Development of Tax Technology Systems
The agency has developed digital platforms like the TaxPro Max portal, making it easier for taxpayers to file, pay, and manage their taxes online.
9. Collaboration with Other Agencies
FIRS partners with the Corporate Affairs Commission (CAC), Central Bank of Nigeria (CBN), Nigeria Customs Service (NCS), and others for data sharing and policy implementation.
10. Tax Refunds and Credits
FIRS has a duty to process legitimate tax refunds and issue tax clearance certificates (TCCs) for eligible taxpayers.
Recent Focus Areas of FIRS (2025)
In recent years, the FIRS has increased its focus on:
- Digital economy taxation (targeting online businesses and platforms)
- Improved compliance monitoring through data analytics
- Increasing tax-to-GDP ratio
- Reducing tax evasion and widening the tax base
- Partnering with state tax authorities under the Joint Tax Board (JTB)
Legal Framework Supporting FIRS Duties
FIRS derives its powers from several laws, including:
- FIRS Establishment Act, 2007
- Companies Income Tax Act (CITA)
- Value Added Tax Act
- Personal Income Tax Act (PITA)
- Petroleum Profits Tax Act
- Stamp Duties Act
- Finance Acts (Updated annually)
These legal instruments empower FIRS to function effectively and remain accountable.
FAQs: Federal Inland Revenue Service in Nigeria
Q1: Is FIRS a revenue-generating agency?
Yes. FIRS is Nigeria’s primary non-oil revenue-generating agency.
Q2: Who can FIRS audit?
FIRS can audit any taxpayer including individuals, businesses, NGOs, and government parastatals.
Q3: How does FIRS enforce tax compliance?
Through audits, investigations, tax assessments, penalties, court actions, and asset seizures if necessary.
Q4: What is the role of the Executive Chairman of FIRS?
The Chairman oversees the management of the agency, strategic planning, and liaison with government ministries and stakeholders.
Q5: Can FIRS work with state tax boards?
Yes. FIRS coordinates with State Internal Revenue Services (SIRS) via the Joint Tax Board (JTB).
Conclusion
The Federal Inland Revenue Service (FIRS) is a cornerstone of Nigeria’s fiscal management. Its duties go beyond tax collection — it ensures compliance, provides taxpayer education, supports government policy, and helps stabilize the national economy through efficient revenue generation.
As the country continues its journey toward economic recovery and development, FIRS remains a critical player in securing the funds needed to power national growth.
