The Rivers State Government has unveiled a comprehensive tax reform initiative aimed at increasing compliance, adopting digital systems, and eliminating illegal tax collection practices, all to strengthen the state’s business environment.

The initiative was announced by Israel Egbunefu, Executive Chairman of the Rivers State Internal Revenue Service (RIRS), at the maiden BusinessDay/RIRS Tax Breakfast Meeting held in Port Harcourt on Thursday, March 19, 2026.

Egbunefu stressed that many Nigerian businesses delay engaging with the tax system, missing opportunities for proper planning and legal optimisation.

“Businesses that engage early with the tax system are better positioned for sustainability and profitability,” he said. “The real advantage lies in early planning and understanding the opportunities the law provides.”

Data from BudgIT shows Rivers State generated approximately ₦300 billion in Internally Generated Revenue (IGR) in 2024, averaging ₦25 billion monthly—the highest among Niger Delta states. Updated figures remain limited, but Governor Siminalayi Fubara disclosed in 2025 that the state consistently records between ₦25 billion and ₦28 billion monthly, underscoring the impact of effective tax administration on economic growth.

Egbunefu warned that businesses attempting to underreport income or evade taxes will face strict action. The agency has strengthened its intelligence and monitoring systems to track such cases.

“We have conducted extensive investigations that reveal critical information to identify underreporting,” he said.

He also addressed illegal tax collectors, or touts, emphasizing the government’s commitment to eradicating harassment. “We are determined to remove those who harass taxpayers. If anyone approaches you illegally, report them to us immediately,” he added.

Egbunefu outlined RIRS priorities to modernize tax administration, including

“These reforms aim to create a fair, technology-driven system that encourages voluntary compliance and builds public trust,” he said.

Egbunefu stressed that taxes should not be viewed solely as obligations but as strategic tools for business growth.

“Our role is to ensure fairness, transparency, and a level playing field where compliant businesses can thrive,” he said. He added that continuous stakeholder engagement, including forums like the BusinessDay tax breakfast, is essential to improving compliance.

Speaking on “Leveraging Nigeria’s Tax Laws to Enhance Profitability,” John Ohaka of Rivers State University highlighted tax incentives businesses can leverage:

He explained that these strategies can improve cash flow, reduce tax burdens, and boost overall business performance.

Egbunefu emphasised that modern tax administration is about more than revenue—it is about building trust, fostering voluntary compliance, and supporting economic development.

“Effective tax systems strengthen public trust, institutional credibility, and sustainable growth. Rivers State’s future economic success depends on a strong, fair, and efficient tax system,” he said.

In his welcome address, Patrick Ijegbai of BusinessDay Media lauded RIRS leadership, calling the initiative timely and impactful. He noted that collaboration aims to deepen conversations on taxation and enhance understanding among businesses and residents in Rivers State.

The event featured expert panel discussions from taxation and accounting professionals, offering insights into improving compliance and strengthening Nigeria’s fiscal environment.