The Nigeria Revenue Service (NRS) has clarified that the Minister of Finance has no authority to interfere in specific tax enforcement matters, reaffirming that the agency operates independently under the Nigeria Revenue Service (Establishment) Act No. 4.
In its recently published “100 Frequently Asked Questions” on the new tax framework, the agency stated that while the Minister of Finance may issue general policy directions, such powers do not extend to influencing individual tax assessments, disputes, or enforcement actions involving taxpayers.
The NRS further explained that its governance structure is designed to ensure accountability without compromising operational integrity. It is required to submit annual reports and audited financial statements to the Minister, who then forwards them to the Federal Executive Council and the National Assembly for oversight.
On revenue recovery, the agency outlined procedures for recovering unremitted funds from government bodies. It noted that the Office of the Accountant-General of the Federation may deduct outstanding revenues directly from the statutory allocations of defaulting agencies, but only after a formal warrant from the NRS Executive Chairman and approval from a judicial officer.
The agency also addressed misconceptions about its enforcement powers over bank accounts, stressing that it cannot directly debit taxpayer accounts. Instead, it may appoint third parties holding a taxpayer’s funds as collection agents, and only after all dispute resolution processes, including court determinations, have been fully exhausted.
According to the NRS, these provisions are intended to strengthen tax administration while protecting taxpayer rights, ensuring due process and adherence to the rule of law within Nigeria’s evolving fiscal system.