The Federal Inland Revenue Service (FIRS) has clarified that the widely discussed 4% development levy is not a new charge. According to the agency, the levy has been part of Nigeria’s tax system for years, but many businesses and individuals only recently became aware of it. FIRS stressed that the levy was already established under existing laws and is simply being enforced more actively.

FIRS added that the purpose of the levy is to support national development programmes. The agency explained that the funds generated are used to improve infrastructure and support government projects that benefit the public. It noted that implementing the levy properly helps the government raise revenue without introducing additional taxes.

The agency also urged Nigerians not to panic, saying the levy does not mean new financial stress for taxpayers. Instead, FIRS encouraged businesses to comply with the rules and seek clarification whenever needed. The service reassured citizens that its role is to ensure a fair and transparent tax system, not to impose unnecessary burdens.

FIRS concluded that better awareness and communication will prevent misunderstandings about tax policies. The agency promised improved public engagement to help Nigerians understand their obligations. It also advised taxpayers to follow official channels for updates rather than relying on rumours.