Abstract

Nigeria’s persistent tax administration challenges including inefficiencies, fragmentation, and low compliance have significantly constrained the country's fiscal capacity and development potential. In response, the Nigeria Revenue Service (Establishment) Bill, 2024 seeks to replace the Federal Inland Revenue Service (FIRS). It proposes consolidating tax administration into a centralized authority, enhancing digitalization, strengthening governance structures, and promoting professionalization. Grounded in Public Choice Theory and New Institutional Economics, this critique evaluates the Bill’s potential strengths, including improved efficiency, greater transparency, and increased voluntary compliance. However, it also highlights critical weaknesses, such as the risks of overcentralization, bureaucratic capture, and insufficient attention to subnational fiscal autonomy and public trust-building. While the Bill represents a positive step toward modernizing Nigeria’s tax system, its success will ultimately depend on complementary reforms that ensure accountability, safeguard institutional integrity, and actively engage stakeholders at all levels. This study concludes by offering policy recommendations aimed at fostering a more inclusive, transparent, and sustainable revenue administration framework