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FIRS Chairman, Zacch Adedeji.
The Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, has called on state accountant-generals to enhance efforts in boosting internally generated revenue.
Speaking at a workshop on enhancing tax compliance and revenue in Abuja, Adedeji emphasised the crucial role of state accountants in achieving Nigeria’s revenue goals.
Adedeji stressed the importance of collaboration between the FIRS and state accountant-generals, acknowledging their pivotal role in ensuring tax compliance and remittance.
He noted that the FIRS cannot fulfill its revenue collection mandate without the cooperation of state financial officers.
In his address, the FIRS chairman highlighted the economic challenges facing Nigeria and the necessity of focusing on IGR without increasing tax rates.
He said, “We are all agents of the same government, united by one vision: to ramp up revenue for the growth and development of Nigeria and, by extension, for the benefit of its citizens.
“It is no longer news that our nation is facing economic challenges, but as a government, it is imperative that we look inward and increase our internally generated revenue.
“However, this does not necessarily mean increasing tax rates. Instead, we must focus on blocking leakages and ensuring full compliance with the existing tax laws, a task that I believe we can achieve together.”
Adedeji noted that achieving this goal requires joint efforts, particularly in enforcing the remittance of Value Added Tax, Stamp Duties, and Withholding Tax.
He also acknowledged the government’s initiatives to simplify the tax remittance process, such as the centralized payment system.
During his address, Adedeji acknowledged that the recent reduction in WHT rates could lead to lower immediate tax collections.
He explained that this adjustment is aimed at easing the burden on businesses by focusing on taxing profits rather than revenue.
Adedeji noted, “The government has also made efforts to simplify the tax remittance process, particularly through the centralized payment system where Accountant-Generals handle payments on behalf of government agencies. This has been instrumental in ensuring swift remittance of taxes such as VAT, WHT, and Stamp Duties.
“We have also reduced the WHT rates to focus on taxing profits rather than revenue, a move that aims to ease the burden on businesses and citizens. While this may reduce the immediate tax collection, we believe that with enhanced compliance and collaboration, we can expand the tax base and make up the difference.”
He also outlined the technological advancements and improved processes the FIRS has adopted, which have bolstered tax compliance efforts.
He expressed confidence in achieving the agency’s ambitious target of an 18 per cent tax-to-GDP ratio by 2026.
