The Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, on Wednesday addressed Nigeria’s recent tax reforms, as industry leaders deliberated progress and drawbacks.
Adedeji, represented by the Acting Director of the Medium Taxpayers Department, South, Oti Olaniyi, described the restructuring of FIRS as a customer-centric shift designed to improve efficiency and responsiveness.
The FIRS chairman said this at the Lagos Chamber of Commerce and Industry’s Organised Private Sector Stakeholders’ Engagement on Emerging Tax Matters.
Adedeji noted that the agency’s transformation focused on decentralising operations, embracing technology, and streamlining tax services, including the introduction of the ‘TaxPro Max’ platform, which simplified tax filing and enhanced compliance through e-filing, e-reporting, and other digital solutions.
“FIRS is committed to a customer-focused service delivery aimed at boosting voluntary compliance and increasing revenue generation,” he said.
According to the FIRS boss, the agency’s new structure includes three operational groups—small, medium, and large taxpayers—to address the needs of various taxpayer segments more effectively.
He emphasised the agency’s need to broaden the tax base, owing to Nigeria’s heavy reliance on oil revenues and a means to promote diversification into non-oil revenues to meet infrastructure needs and grow the economy.
The FIRS chairman reiterated the introduction of a simplified withholding tax regime for small businesses and reduced rates for low-margin enterprises, which aimed to reduce tax avoidance and encourage compliance.
He added that other reforms included tax incentives, especially for the gas sector, which was a part of the government’s efforts to stimulate investment and growth.
Adedeji noted that incentives such as zero VAT on compressed natural gas and liquefied petroleum gas intended to boost the sector and diversify Nigeria’s energy mix.
He urged businesses and citizens to collaborate in advancing Nigeria’s tax system, maintaining that transparency and innovation were key to ensuring long-term success.
He emphasised the importance of tax education and public awareness in fostering a culture of compliance.
The President of the LCCI, Gabriel Idahosa, called for increased collaboration between the private sector and government in addressing Nigeria’s fiscal challenges.
He said Nigeria’s tax-to-GDP ratio remained significantly low at 10.86 per cent, compared to the African average of 15-20 per cent and noted that the Federal Government would require comprehensive reforms and strong cooperation between public and private stakeholders to raise the ratio to 18 per cent within three years,
Idahosa praised the ongoing efforts by the FIRS to improve tax administration through technology, including the ‘TaxProMax platform’ and lauded the establishment of the Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Taiwo Oyedele.
A highlight of the event was the response of the LCCI Director General, Dr Chinyere Almona, a member of the Presidential Committee on Fiscal Policy and Tax Reforms, said the wait for legislative approval for the new withholding tax regime had delayed the implementation of the reform.
“The tax law is being revised but that has to go through a process of approval. It’s difficult to have things come out piecemeal, as it won’t benefit anyone to have reforms that are not integrated,” Almona remarked.
She urged industry players to exercise some patience as the process of approval was ongoing.
