FIRS Announces Three-Day IT Shutdown for System Maintenance and Upgrades
The Federal Inland Revenue Service (FIRS) has issued a public notice announcing a temporary, three-day shutdown of its entire information technology (IT) ecosystem. This mandatory downtime will affect all FIRS applications and underlying infrastructure, impacting tax payment and filing services.
The shutdown is scheduled to run from Friday, November 28, to Sunday, November 30, 2025, and is part of the FIRS’s ongoing efforts to upgrade and maintain systems in anticipation of major tax policy changes in the coming year.
Table of Contents
FIRS IT System Downtime Schedule
Context: Preparing for 2026 Tax Changes
Clarification on Small Company Tax Status
Key Upcoming Tax Policy Shifts
1. FIRS IT System Downtime Schedule
The FIRS confirmed that the comprehensive shutdown of its IT infrastructure is essential for maintenance and system updates.
Commencement: Friday, November 28, 2025
Conclusion: Sunday, November 30, 2025
Scope: All FIRS applications and IT services nationwide will be unavailable during this period.
The agency apologized for any inconvenience caused by the temporary disruption, urging the public to plan their tax-related transactions accordingly.
2. Context: Preparing for 2026 Tax Changes
The timing of the IT maintenance suggests preparations for major national tax reforms set to take effect in 2026. Just prior to the announcement, the FIRS held a public webinar focused on clarifying upcoming changes to corporate income tax obligations, particularly for small companies.
The webinar, titled “Income Taxes: Expected Changes in 2026 and How to Stay Compliant”, emphasized the legal distinction between a tax exemption and zero percent liability, requiring technical system upgrades to handle the new compliance rules.
3. Clarification on Small Company Tax Status
A significant change highlighted by the FIRS concerns the tax status of small companies.
New Definition: Firms with an annual turnover of up to ₦50 million and fixed assets not exceeding ₦250 million now qualify as small companies.
Zero Percent Liability: From 2026, these companies will have a tax liability of zero per cent (0%).
Mandatory Compliance: Deputy Director at FIRS, Kehinde Kajesomo, clarified that while small companies will not pay corporate income tax, they are still required to compute taxable income and file self-assessment returns.
This shift from being exempt to having zero percent liability ensures that even small businesses remain integrated into the tax system for accurate reporting and compliance monitoring. Furthermore, these companies will now pay zero percent tax on capital gains, a reduction from the previous 10 per cent rate.
4. Key Upcoming Tax Policy Shifts
The system maintenance is expected to support several other critical reforms coming online, including measures targeting large enterprises and changes to existing development levies.
A. Minimum Effective Tax Rate
A new minimum effective tax rate of 15 per cent has been introduced for:
Multinational enterprises (MNEs) with global turnover above €750 million.
Local companies with a turnover exceeding ₦50 billion.
These firms will be subject to the Additional Tax Rule (ATR) under Section 57 of the Nigerian Tax Act.
B. Development Levy Replacement
A new Development Levy of 4 per cent on accessible profits will be introduced. This levy is designed to replace several existing levies, including the Tertiary Education Tax, IT Levy, Police Trust Fund Levy, and NASENI Levy, aiming to simplify the administrative burden for businesses.
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