Nigeria VAT reforms: Customs stops collecting import tax as NRS takes over Slug: /nigeria-tax-overhaul-2026
By: Abudu Olalekan
Believe it or not, the era of the Nigeria Customs Service (NCS) handling your import VAT is officially over. As of January 1, 2026, the tax landscape in Nigeria has shifted in a big way. The Nigeria Revenue Service—you probably know them by their old name, the FIRS—has taken the wheel.
It’s all part of a massive plan to stop different agencies from tripping over each other.
Reportersroom took a look at the latest numbers, and the change is pretty startling. Back in December 2025, Customs spent about ₦3.84 billion just on the cost of collecting import VAT. By January? That number hit zero. They’ve completely stepped out of the process. Now, the NRS is the sole authority for all federal taxes. It’s a bold move to centralize everything.
The Money is Moving
With the NRS taking full control, they’ve been busy. Their own collection costs jumped to over ₦43 billion in January. That sounds like a lot, but the actual tax coming in is even bigger. Total VAT collections hit roughly ₦1.08 trillion in just one month. That is an 18.5% jump from December. Clearly, the new system is shaking things loose.
The government is betting that a unified, digital system will catch more of the money that used to slip through the cracks.
What This Means for You
First off, don’t worry—the VAT rate is still 7.5%. They didn’t hike the price on us. But, they did change some of the rules for businesses. You can now claim input VAT on more stuff, like services and big equipment. This should, in theory, help companies keep more of their cash flowing.
There’s also a new promise on the table: VAT refunds in 30 days. We’ve heard big promises before, but the NRS says their new digital reporting will make this actually happen. Stricter paperwork is the trade-off.
States Get a Bigger Slice
One of the most interesting parts of this reform is who gets the money. The states are the big winners here. Their share of the VAT revenue just got bumped from 50% to 55%. Meanwhile, the Federal Government is taking a cut, dropping down to just 10%.
The idea is to get more money into the hands of local governments. Analysts are saying this removes the old administrative mess where different offices were doing the same job. It’s a “global best practice” approach. One agency. One data system.
It’s a lot of change at once. But if it means less red tape at the ports and more money for state projects, it might actually be a win for everyone. The NRS is the boss now. Let’s see how they handle the pressure.
