Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has responded to apprehensions regarding four tax bills currently before Nigeria’s National Assembly, stating that these proposed reforms will not threaten the operations of any revenue-generating agency. In a recent meeting held at the Revenue House in Abuja, Adedeji reassured stakeholders, including heads of key federal agencies, that fears surrounding the bills were unfounded. He emphasized that the proposed change in the FIRS name to Nigeria Revenue Service would not equate to a takeover of other agencies and that the reforms are designed to streamline Nigeria’s fiscal framework while enhancing operational efficiencies across various sectors.
Adedeji made it clear that the proposed tax bills should be viewed as a means to bolster agency funding and effectiveness, rather than as a risk to their sustainability or revenue-generating capabilities. He articulated that the primary goal of these legislative measures is to enhance tax efficiency and simplify compliance processes. The FIRS Chairman posited that these reforms would allow agencies to focus on their core responsibilities, notably, the fulfillment of their mandates without being encumbered by revenue collection tasks. This shift is anticipated to promote a more efficient allocation of agency resources, which in turn should positively impact economic activity and the overall competitiveness of Nigeria.
Further clarifying the intent behind these reforms, Adedeji explained that they are part of a broader strategic initiative by President Bola Tinubu’s administration to harmonize Nigeria’s tax laws. According to him, many laws governing various federal agencies include embedded tax provisions, and the proposed harmonization aims to rectify this complexity. By consolidating and updating existing laws, the government seeks to create a more coherent tax environment conducive to business and innovation, ensuring Nigeria remains an attractive investment destination on the global stage.
He articulated a vision of a regulatory landscape where agencies are empowered to execute their mandates effectively without the added burden of tax collection responsibilities. This division of responsibilities is intended to enhance operational focus, allowing agencies to leverage their unique expertise in their respective domains, hence becoming more efficient in delivering on their development goals. By alleviating these duties from agencies like the National Agency for Science and Engineering Infrastructure, the National Information Technology Development Agency, and the Tertiary Education Trust Fund, the government believes it can energize their operational performances.
Moreover, Adedeji reinforced that the reforms are fundamentally designed to address existing operational inefficiencies and stimulate economic activities by creating a more favorable tax environment. He recognized the necessity of a tax system that aligns with current economic realities and better supports Nigeria’s goals for growth and investment. As part of this initiative, the Chairman emphasized that the reforms aim not just to streamline tax collection, but also to invigorate Nigeria’s economy by creating a more predictable and stable fiscal climate for local and foreign businesses.
In closing the discussion, Adedeji and the attending agency heads took the opportunity to illuminate their respective contributions to Nigeria’s development agenda. Through this dialogue, they reinforced their commitment to cooperating with the FIRS and the Federal Government in ensuring that the proposed tax reforms achieve their intended objectives while safeguarding the long-term viability and effectiveness of Nigeria’s diverse agencies. The overall sentiment was one of optimism that these legislative amendments would pave the way for a more integrated and efficient government revenue ecosystem, fostering an environment where both governmental operations and private sector engagements can thrive harmoniously.
