Nigeria’s new tax confidentiality law criminalizes unauthorized disclosure of Nigeria Revenue Service documents, imposing fines up to N5 million or 3 years imprisonment

The Federal Government of Nigeria has introduced a stringent tax confidentiality law under the new tax act that criminalizes the unauthorized disclosure of internal documents, communication, and institutional data belonging to the Federal Inland Revenue Service (FIRS), soon to be renamed Nigeria Revenue Service by January 2026.

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Under the law, any unauthorized leak or disclosure of internal FIRS documents or communication can attract a fine of up to N5 million, imprisonment for up to three years, or both upon conviction.

The legislation explicitly classifies all FIRS institutional information as confidential and limits its use strictly to tax administration and legal proceedings.

The act mandates strict confidentiality for officials handling taxpayers’ information about business assets, liabilities, profits, or income, with only three exceptions allowed for disclosure: by court order, authorization by FIRS, or for tax law enforcement purposes, including under international tax treaties.

The legislation also protects FIRS employees and documents from compelled disclosure in non-tax-related legal cases, reinforcing institutional secrecy.

It introduces time limits for legal suits against the Service or its officials—three months for general claims and six months for ongoing damages—and invokes the Public Officers Protection Act to shield tax officials acting in the lawful course of duty.

This move aligns with the government’s broader efforts to modernize and secure the Nigerian tax system through digitalization and data-driven enforcement while cracking down on persistent leaks and breaches that threaten reforms.

However, critics warn that the law must balance confidentiality with transparency and whistleblower protections to avoid stifling accountability.

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The new provisions follow warnings from government officials, including the Secretary to the Government of the Federation, George Akume, who declared unauthorized disclosure of official documents a punishable felony without defense under the Constitution or Freedom of Information Act.