FIRS Ends Multiple Federal Taxes by 2026 -

The Federal Inland Revenue Service (FIRS), under the leadership of CEO Zacch Adedeji, has announced a significant reform: starting in January 2026, new tax laws will eliminate multiple federal taxes. This initiative aims to simplify business compliance and improve the overall tax experience for Nigerians.

Simplifying Tax Compliance for Businesses

The introduction of the new tax regime is a critical step toward easing the tax burden on businesses. “Our goal is to create a more business-friendly environment,” Adedeji stated during a recent press conference. By streamlining the tax system, the FIRS aims to enhance compliance and encourage growth among small and medium-sized enterprises (SMEs).

The current tax landscape can be confusing for many businesses. Multiple federal taxes often lead to overlaps and complexities that hinder compliance. “We understand the challenges businesses face, and we are committed to simplifying the process,” Adedeji explained. The new tax laws will create a more straightforward framework, making it easier for companies to fulfill their tax obligations.

This change is particularly significant for SMEs, which often struggle with the administrative burdens of tax compliance. By reducing the number of federal taxes, the FIRS hopes to empower these businesses to focus on growth rather than navigating a complicated tax system.

Why are multiple federal taxes being eliminated?

Historically, Nigeria’s tax system has been characterized by numerous federal taxes, which have created confusion and compliance challenges. Businesses have often expressed frustration over the complexity of the existing tax framework. This feedback prompted the FIRS to reevaluate and reform the tax system.

The decision to eliminate multiple federal taxes is aimed at addressing these issues. “We want to ensure that our tax system is not a hindrance to business operations,” Adedeji emphasized. By simplifying tax regulations, the FIRS aims to create a more conducive environment for investment and economic growth.

Conclusion: A Positive Step Towards Economic Growth

In conclusion, the FIRS’s initiative to end multiple federal taxes by January 2026 marks a significant shift in Nigeria’s tax landscape. Under Zacch Adedeji’s leadership, this reform aims to simplify tax compliance and foster a more business-friendly environment.

As the new tax laws take effect, businesses can expect a more streamlined process that encourages compliance and supports growth. This change is essential for enhancing Nigeria’s economic prospects and ensuring that the tax system works effectively for all stakeholders.