Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
In a sweeping fiscal reform aimed at tightening the state’s revenue architecture and eliminating longstanding irregularities in tax collection, the Rivers State Internal Revenue Service (RIRS) has formally asserted itself as the sole authority responsible for assessing, collecting and accounting for all taxes, fees and levies within the state. The directive, issued in early March and reiterated in various official communications from the agency’s leadership, is part of a broader strategy to curb revenue leakages, improve compliance and restore public confidence in government revenue systems.
At the centre of the initiative is Sir Israel Onwuanaku Egbunefu, the Executive Chairman of RIRS, who has called on all Ministries, Departments and Agencies (MDAs) operating within Rivers State to immediately desist from direct collection of government revenues outside the formal channels established by the revenue service. In statements made during stakeholder engagements and public sensitisation campaigns, Egbunefu stressed that only the RIRS is empowered by law to collect legitimate statutory revenues, and that any attempt by MDAs or private agents to impose unauthorized levies amounts to illegal revenue mobilization.
The move is rooted in long‑standing concerns about fragmented revenue collection across government units, which critics say has allowed some agencies, departments, local authorities and unofficial actors to impose multiple, overlapping, and sometimes unlawful fees on businesses and residents. This practice not only slowed economic activity but also fuelled corruption and leakages, eroding the state’s tax base despite Rivers historically reporting one of the nation’s highest internally generated revenues.
“We are repositioning the revenue system to ensure that public funds are properly accounted for, that tax obligations are clear, and that taxpayers are protected from extortion and harassment,” Egbunefu said during a radio interview in Port Harcourt. He emphasised that RIRS has ended the engagement of external tax agents, whose contracts expired on December 31, 2025, and now serves demand notices and collects revenue directly through official channels.
The directive also reflects broader legal and constitutional interpretations of revenue powers in Nigeria. Historically, Rivers State has been at the forefront of asserting its rights to administer and collect taxes within its territory. For example, a Federal High Court ruling in Port Harcourt previously affirmed that the state government, not the Federal Inland Revenue Service, holds the constitutional authority to impose and collect certain taxes, including personal income tax and value added tax, within the state, a judgment that underscored states’ fiscal autonomy in tax matters.
In practical terms, the reform requires that all revenue collecting agencies funnel their receipts and assessments through RIRS’s systems, which include digital platforms designed to replace cash-based transactions. The agency’s leadership has emphasised a shift toward electronic payment mechanisms, e‑receipts, and robust tracking systems to minimise human interference and reduce opportunities for misappropriation. These modernisation efforts align with national trends, where governments at both federal and state levels are phasing out cash collections in favour of digitised revenue ecosystems to block leakages.
As part of the clampdown on illegal levies, RIRS has also warned taxpayers to be cautious of impostors and unauthorized individuals claiming to be officials authorised to collect state revenue. The agency’s Compliance and Enforcement team has reportedly apprehended several suspects impersonating tax officials, and Egbunefu reiterated that revenue should only be paid through formal RIRS channels.
The reforms have been met with a mix of support and concern. Public finance and tax experts have largely welcomed the initiative, noting that a centralised revenue system enhances accountability, simplifies compliance, reduces arbitrary charges, and improves the ease of doing business within the state. One economist remarked that a unified and transparent revenue apparatus can significantly boost internally generated revenue, which is crucial for subnational governments in Nigeria facing volatile federal allocations and mounting development needs.
However, some stakeholders within MDAs and the private sector have expressed caution, fearing that centralisation of revenue collection could initially create bottlenecks or slow down processes that previously occurred at agency level. In response, RIRS has assured that service-level agreements will be implemented to ensure efficient revenue administration without undue delays, and that digital tools will facilitate faster transactions.
Local business associations have generally responded positively to the reform, expressing optimism that eliminating arbitrary and unapproved levies will make operations more predictable and reduce the cost of compliance for traders, firms and small business owners. Civil society groups, too, have applauded the move as a step toward greater fiscal transparency and reduced corruption, calling for continued public education to help residents navigate the new system.
The timing of the directive also coincides with broader fiscal reforms unfolding across Nigeria. At the federal level, recent policy shifts have mandated digital revenue collection to strengthen the Treasury Single Account system and eliminate cash transactions at government revenue points, further emphasising the country’s push toward modernised public finance management.
The Rivers State government has indicated that enhanced revenue mobilisation will support infrastructure development, social programmes, and service delivery across the state’s local government areas. Officials point to ongoing construction projects funded through internally generated resources as evidence that effective tax administration can directly translate into tangible improvements for citizens.
Looking ahead, the success of the RIRS directive will depend on several factors, including effective enforcement, technological infrastructure, inter-agency cooperation, and continuous engagement with taxpayers. Observers note that sustained transparency, clear communication and accountability will be essential in ensuring that the reforms not only boost revenue but also strengthen public trust in government institutions.
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