THE Nigeria Revenue Service (NRS) has clarified that the Minister of Finance does not have the authority to interfere in specific tax enforcement actions, stressing the agency’s operational independence under the Nigeria Revenue Service (Establishment) Act No. 4.
In its recently released “100 Frequently Asked Questions” on the new tax framework, the NRS explained that while the Minister may issue broad policy directives, such powers do not extend to influencing individual tax assessments, disputes, or enforcement proceedings involving taxpayers.
Addressing concerns over ministerial oversight, the agency emphasised that its governance structure ensures accountability without compromising enforcement integrity. According to the NRS, it is required to submit annual reports and audited financial statements to the Minister, who subsequently presents them to the Federal Executive Council and the National Assembly.
On revenue recovery, the NRS outlined a structured process for addressing unremitted funds by government agencies. It stated that the Office of the Accountant-General of the Federation may deduct such revenues directly from statutory allocations due to defaulting agencies. However, this action requires a formal warrant issued by the NRS Executive Chairman and authorisation from a judicial officer.
The agency also dispelled widespread misconceptions about its enforcement powers over taxpayers’ bank accounts. It clarified that the NRS does not have the authority to directly debit accounts. Instead, it may appoint third parties holding funds on behalf of a taxpayer as collection agents, but only after all dispute resolution processes—including judicial determination have been fully exhausted.
The NRS said the provisions are designed to balance effective tax administration with taxpayer protections, ensuring due process and adherence to the rule of law under Nigeria’s evolving fiscal framework.