The Federal Government has tightened its grip on the confidentiality of tax-related information by approving a clause in the new tax act that criminalises the unauthorised disclosure of internal documents, communication, and institutional data belonging to the Federal Inland Revenue Service, to be rechristened Nigeria Revenue Service by January 2026.

According to provisions of the newly introduced tax legislation, any person who leaks, attempts to leak, or discloses internal documents or communication of the Service faces a fine of up to N5m or three years in prison or both, upon conviction.

The law, contained In Part VI (Miscellaneous Provisions) of the Act, designates all internal documents, communications, memos, and institutional information of the FIRS as confidential. It restricts their use strictly to tax-related purposes and legal proceedings.

The latest development comes amid heightened efforts by the government to curb the persistent leakage of sensitive public documents, which officials say poses a threat to national security and undermines the integrity of state institutions.

The document read, ?Without prejudice to the provisions of any other Act concerning data privacy or Information and data protection, institutional information or communication, all internal documents to be information, communications, documents, or memoranda of the Service are confidential.

?Except as otherwise provided under this Act, any other law or any enabling agreement or arrangement, or as otherwise authorised by the Executive Chairman or management of the Service, any person who discloses or attempts to disclose institutional information, communication, document or memorandum of the Service is liable on conviction to a fine not exceeding N5,000,000 or imprisonment for a term not exceeding three years or both,? the Act states.

Furthermore, the Act mandates that every person acting in an official capacity or involved in the administration of the tax system must treat documents related to a taxpayer?s business, assets, liabilities, profits, or income as strictly confidential.

Only three exceptions are permitted for disclosure: When ordered by a court; When authorised by the FIRS; or When disclosure is necessary for enforcing tax laws in Nigeria or under a tax treaty.

?A person acting in an official capacity or employed in the administration of this Official Secrets Act shall regard and deal with originals or copies of all documents, information, returns, notices or assessments, lists relating to the business, assets, liabilities, confidential profits or items of profits of any person as secret and confidential.

?A person acting in an official capacity or employed in the administration of this Act who, being in possession of or control of, originals or copies of any document, information, return, notice or assessment, list relating to business, assets, liabilities, profits or items of profits of any person, communicates or attempts to communicate such information or anything contained in the document, return, notice or assessment, list or copy to any person other than a person authorised by the Service to communicate it; by an order of the court, or for this Act or any other tax law in Nigeria, commits an offence under this Act is liable on conviction to a fine not exceeding N5,000,000 or imprisonment for a term not exceeding three years or both.

?A person appointed or employed under this Act shall not be required to produce any document, information, return, notice or assessment, or to divulge or communicate any information that comes into his possession in the performance of his duties except as may be necessary in order to institute a legal proceeding or in the course of a legal proceeding relating to tax in Nigeria,? the Act noted.

It added that the obligation as to secrecy imposed by this Act shall not prevent the disclosure of relevant information to an authorised officer of the Government of a country with which Nigeria has entered into any treaty, agreement, or arrangement on tax matters.

The law also protects FIRS employees and documents from being compelled for disclosure in non-tax-related proceedings, reinforcing the institutional secrecy surrounding Nigeria?s tax apparatus. The legislation does, however, permit the exchange of information with foreign governments with whom Nigeria has an active tax treaty or agreement.

In addition to data protection, the Act places strict limitations on legal suits against FIRS personnel and the Service itself. Specifically, any legal action arising from acts done under the Act must be filed within three months of the incident, or six months in the case of a continuing injury or damage.

?No suit against the Service, Executive Chairman, member of the Board, or any other officer or employee of the Service? shall lie or be instituted in any court unless it is commenced within three months,? the law states.

The Act also invokes the Public Officers Protection Act, which shields tax officials from litigation for acts carried out in the course of public duty unless those acts fall outside lawful execution. Sunday PUNCH reports that the legislation underscores the government?s push to reform Nigeria?s tax system through digitalisation, data-driven enforcement, and administrative insulation.

While no official explanation has been given behind the new measures, tax analysts acknowledge that it is tied to a broader crackdown on leaks and data breaches that have undermined institutional reforms in the past. Critics, however, may argue the law could stifle whistleblowing and transparency if not properly balanced with accountability safeguards.

Last year, the government warned against unauthorised disclosure or leakage of official documents, capable of impacting the country negatively. The Secretary to the Government of the Federation, George Akume, gave the warning and declared that it is a punishable offence.

Akume said unauthorised leakage of sensitive official documents constitutes a felony, and there is no defence for such, either in the Constitution or the Freedom of Information Act.

Section 97 (2) of the Criminal Code Act of Nigeria provides: ?Any person who, being employed in the public service, without proper authority abstracts, or makes a copy of, any document the property of his employer is guilty of a misdemeanour and is liable to imprisonment for one year?. (Sunday PUNCH, excluding headline)

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