Nigeria: FIRS Engages Industry Leaders on Ongoing Tax Reforms

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has discussed Nigeria’s recent tax reforms, engaging with industry leaders to evaluate progress and challenges. Speaking at the Lagos Chamber of Commerce and Industry (LCCI) Stakeholders’ Engagement on Emerging Tax Matters, Adedeji, represented by Oti Olaniyi, Acting Director of the Medium Taxpayers Department, South, outlined the agency’s customer-centric transformation.

He highlighted FIRS’ restructuring efforts aimed at improving efficiency and responsiveness, noting that the agency had adopted a more decentralized approach and embraced technology-driven solutions. This included the introduction of the ‘TaxPro Max’ platform, which simplifies tax filing and enhances compliance through e-filing, e-reporting, and other digital tools.

“FIRS is committed to delivering customer-focused services that boost voluntary compliance and increase revenue generation,” Adedeji stated.

He explained that the agency’s new operational structure now caters to three distinct taxpayer groups—small, medium, and large taxpayers—to address varying needs more effectively. He stressed the importance of expanding Nigeria’s tax base to reduce the country’s overreliance on oil revenues, promoting diversification into non-oil sectors to fund infrastructure development and drive economic growth.

One of the key reforms discussed was the simplified withholding tax regime for small businesses and reduced rates for low-margin enterprises, aimed at reducing tax evasion and encouraging compliance. Adedeji also spoke on tax incentives designed to stimulate the gas sector, including zero VAT on compressed natural gas (CNG) and liquefied petroleum gas (LPG), which are part of broader efforts to diversify Nigeria’s energy mix.

He urged businesses and citizens to collaborate with the government in advancing the country’s tax system, emphasizing that transparency and innovation were essential for ensuring long-term success. Adedeji also highlighted the critical role of tax education and public awareness in fostering a culture of compliance.

LCCI President Gabriel Idahosa commended FIRS’ efforts to improve tax administration through technology, particularly with the TaxPro Max platform. He called for stronger collaboration between the public and private sectors to address Nigeria’s fiscal challenges. Idahosa also noted that Nigeria’s tax-to-GDP ratio, currently at 10.86%, remains below the African average of 15-20%, and achieving the government’s goal of 18% within three years would require comprehensive reforms and close cooperation.

Dr. Chinyere Almona, LCCI Director General and member of the Presidential Committee on Fiscal Policy and Tax Reforms, discussed the ongoing revision of Nigeria’s tax laws. She acknowledged the delays caused by the legislative approval process for the new withholding tax regime, urging patience as reforms continue to be integrated into the system.

“While the tax law is being revised, the approval process must be completed for the reforms to be fully implemented. Piecemeal changes would not benefit anyone in the long run,” Almona noted.

The dialogue underscores the ongoing efforts by FIRS and the government to modernize Nigeria’s tax system, foster economic growth, and ensure a more equitable and efficient tax regime.