The Federal Government has officially granted the newly established Nigeria Revenue Service (NRS) the power to borrow funds from any source to support its operations, according to a report by The PUNCH.
This major development is contained in the signed version of the Nigeria Tax Act, 2025, obtained on Sunday. The legislation, which takes effect from January 2026, was signed into law last month by President Bola Tinubu after prolonged deliberations.
The Tax Administration Act 2025 marks a significant step towards enhancing the financial and operational independence of the NRS. According to Section 28 of the Act, “The Service may borrow by way of loan, overdraft or otherwise from any source, such sums as it may require for the performance of its functions and meeting of its obligations under this Act.”
In addition to borrowing rights, the law also provides for the NRS to retain four per cent of the revenue it collects as an operational fund—further solidifying its autonomy.
Stakeholders view the move as a strategic shift toward a modern and self-sustaining tax administration system, positioning the NRS to better fulfill its statutory mandates without over-reliance on federal budgetary allocations.
Analysts say the new borrowing powers could help the Service meet short-term funding gaps and expand tax infrastructure, but also caution that transparency and fiscal responsibility will be crucial to prevent misuse.
