Nigeria: FIRS Chairman Reassures Companies of No Plans to Raise Taxes

Zacch Adedeji, the acting chairman of the Federal Inland Revenue Service (FIRS), has addressed concerns from corporate organizations regarding the FIRS’s intention to increase Nigeria’s tax-to-GDP ratio from 10.86% to 18%. Adedeji emphasized that this effort will not necessarily result in higher taxes or the introduction of new taxes. The administration, led by President Bola Tinubu, is committed to creating a conducive environment for business growth.

Adedeji, who aims to achieve an eight percent increase in the tax-to-GDP ratio within the next three years, exceeding Africa’s average of 16.5%, has sparked concerns that this decision might lead to higher tax rates or new tax obligations.

Speaking to representatives of leading tax-paying companies during a gathering in Lagos, Adedeji stated, “Our goal as a revenue-generating agency is to use data to enhance compliance, not to introduce new taxes.”

He assured invited companies and those willing to fulfill their tax obligations voluntarily, saying, “We want to increase tax revenue, focusing on taxing prosperity, not poverty. Therefore, our aim is not to hinder economic growth. You have nothing to fear.”

Adedeji added, “We will only collect what is rightfully owed to us. We have no interest in imposing undue burdens. Our approach is to promote fairness. Rest assured that the 18% tax-to-GDP target will not result in higher taxes.”