- Partners OAGF on achieving $1trn economy target, bridging fiscal system gaps
BY COBHAM NSA – The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zach Adedeji has chided Ministries, Department and Agencies (MDAs) for low tax remittances, citing the development among key factors frustrating improved revenue accruals to the Federation Accounts.
According to him, this is as Nigeria’s tax administration still grapples with persistent challenges despite fiscal measures and technological innovations, including deployment of platforms like GIFMIS and TaxPro MAX.
However, he assured that FIRS is making a strategic shift from enforcement-driven tax compliance to a more proactive approach focusing on taxpayer education that makes adherence to tax laws and regulations a civic responsibility rather than a burden.
Dr Adedeji, who spoke at a stakeholders’ engagement organized by the Office of the Accountant General of the Federation (OAGF) and FIRS, (which has now transformed to the Nigeria Revenue Service (NRS) through the Nigeria Revenue Service Establishment Act 2025), lamented the continued lapses in Withholding Tax (WHT) deductions, VAT remittances, and stamp duty administration across MDAs.
He said the gaps are largely due to technical limitations and a general lack of understanding of tax compliance requirements, resulting in substantial revenue losses and recurring audit issues in the fiscal system.
Emphasizing FIRS’ resolve to drive transformative era in Nigeria’s tax administration, Adedeji said tax compliance is about understanding and trust, adding that the Service is deploying digital tools like TaxPro-Max and taxpayer segmentation models to make tax processes more efficient and accessible.
Furthermore, he said the Emerging Taxpayers’ Group (ETG) Tax Clinic features Interactive Support Desks where attendees received assistance from FIRS personnel and partner agencies.
For the FIRS boss, promoting a culture of voluntary compliance by bringing tax education closer to the people as well as building trust between taxpayers and tax authorities are crucial for effective tax administration and enhanced revenue generation in the country.
In his remarks at the one-day Stakeholders’ Engagement with the theme: “Enhancing Tax Compliance Through Collaboration”, the Accountant General of the Federation (AGF), Shamsudeen Ogunjimi affirmed the Federal Government’s resolve to promote tax compliance and diversify revenue sources towards meeting the $1 trillion economy target by 2030.
Ogunjimi said taxation remains the cornerstone of any thriving economy, noting that improving tax compliance was central to the ‘Renewed Hope Agenda’ of President Bola Tinubu, which seeks to reduce Nigeria’s over-reliance on volatile oil revenues.
Importantly, he said robust partnership between revenue-generating agencies and key stakeholders was crucial to building a more resilient and diversified economy going forward.
On the importance of collaboration, the AGF said; “Taxation remains the lifeblood of any economy, and for us in Nigeria, improving tax compliance is not just a fiscal priority but a national imperative.
“This engagement provides a unique platform to foster synergy between the FIRS and OAGF, align our strategies, and address challenges hindering optimal tax collection and remittances.
“By leveraging technology, strengthening accountability, and promoting transparency and probity. We can significantly enhance compliance and boost government revenue for sustainable development”.
Quite optimistic of better days ahead, Ogunjimi posited, “Together, we can build a robust tax system that supports Nigeria’s economic growth and delivers on the promises of good governance.”
