Tax reforms strengthen federalism, says ex-ODIRS Chair

By Boye Oyeyemi –

A former Chairman of the Ondo State Internal Revenue Service (ODIRS), Dr Tolu Adegbie, has said Nigeria’s new tax reforms do not undermine federalism but instead clarify the powers of government at different levels.

He was reacting on Wednesday to an article by Prof. Jack-Osimiri, where he explained that the Nigerian Revenue Service (NRS) Act 2025 and the Nigerian Tax Administration Act (NTAA) 2025 were in line with the Constitution.

Adegbie stressed that the reforms only cover federal taxes while allowing states and local governments to request assistance when needed.

“A textual reading of the NRS Act shows that sub-national governments retain their taxing powers,” he said.

He dismissed claims that the NRS was empowered to collect “all revenues”, saying the law only grants authority over non-resident companies, multinationals, and digital platforms.

The former ODIRS boss noted that companies like Google, Netflix, and Facebook paid ₦3.85 trillion in taxes in 2024, which he said was possible only under a central federal framework.

He also defended the Presidential Tax Reform Committee, pointing out that it included senior lawyers, academics, and representatives of state tax agencies.

He added that tax delegation was not new, as councils often asked the state IRS to collect levies on their behalf.

“The tax reforms neither usurp the powers of states nor councils,” Adegbie said. “Instead, they simplify Nigeria’s tax system, reduce compliance costs, and strengthen confidence in the system.”