Insight

• Ikiodiete George
• 2 Min Read

Official Functions Of Firs: Their Roles And Responsibilities

The Federal Inland Revenue Service (FIRS) is the government agency responsible for collecting taxes in Nigeria. Taxes are the money people and companies pay to the government to help build roads, schools, hospitals, and pay workers.

FIRS plays a big role in Nigeria’s economy. In this blog, we will explain the main functions of FIRS and how they help the country grow.

What Is the FIRS?

FIRS stands for Federal Inland Revenue Service. It was created to make sure the federal government gets enough money through taxes. Without the work of FIRS, Nigeria would not have enough funds to pay for public services.

Official Functions of FIRS (2025)

Here are the main duties of FIRS:

1. Collecting Federal Taxes

FIRS collects taxes from individuals and companies. These include:

• Company Income Tax (CIT)
• Value Added Tax (VAT)
• Petroleum Profit Tax (PPT)
• Stamp Duties
• Capital Gains Tax
• Personal Income Tax (for armed forces, police, residents of FCT, and foreign affairs)

2. Ensuring Tax Compliance

FIRS makes sure everyone pays their taxes correctly and on time. They also check if companies are following the tax laws.

3. Investigating and Auditing

FIRS audits companies and people to make sure they are not hiding income or avoiding tax. They carry out investigations and take legal steps when necessary.

4. Educating Taxpayers

FIRS teaches people and businesses about taxes. They hold workshops, campaigns, and use the media to educate taxpayers.

5. Enforcing Tax Laws

If someone refuses to pay taxes, FIRS can take legal action. They may issue fines, penalties, or take the person or business to court.

6. Advising the Government

FIRS gives advice to the government on how to improve tax laws and increase revenue collection in Nigeria.

7. Maintaining Tax Records

FIRS keeps a clean record of all tax payments. These records help the government in planning and decision-making.

Summary Table: Roles of FIRS

Why FIRS Is Important

The money collected by FIRS is used to:

• Build infrastructure like roads and bridges
• Pay government workers
• Provide education and healthcare
• Fight poverty and improve public services

So, without FIRS, the government would struggle to function properly.

FAQs About FIRS in Nigeria

Q1: What is the full meaning of FIRS?
A: Federal Inland Revenue Service.

Q2: Who controls the FIRS?
A: It is an agency under the Ministry of Finance but operates independently.

Q3: Can FIRS arrest someone for not paying taxes?
A: Yes. FIRS has the power to take legal action, including arrests for serious tax offenses.

Q4: How can I pay my taxes to FIRS?
A: You can pay through licensed banks, the FIRS online portal, or at FIRS offices.

Q5: Does FIRS collect all types of tax?
A: No. FIRS only collects taxes for the federal government. States have their own tax bodies.

Conclusion

The Federal Inland Revenue Service (FIRS) is more than just a tax collector. It helps Nigeria grow by ensuring everyone pays their fair share. From collecting taxes to advising the government, FIRS plays a big role in building a better country.

If you run a business or work in Nigeria, knowing the roles of FIRS helps you stay compliant and avoid problems.