From Adanna Nnamani, Abuja
The Federal Government has raised concerns over persistent tax evasion and revenue leakages in Ministries, Departments, and Agencies (MDAs), warning that lapses in VAT remittances, withholding tax deductions, and stamp duty administration are undermining Nigeria’s revenue performance.
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr Zacch Adedeji, issued the warning in Abuja on Tuesday, stating that the government will no longer tolerate financial infractions from public institutions, emphasizing that compliance must begin within the system.
Speaking at the FIRS–Office of the Accountant-General of the Federation (OAGF) Stakeholders’ Engagement themed “Enhancing Tax Compliance Through Collaboration,” Adedeji declared that the era of laxity in tax remittance is over.
He noted that, despite technological advancements like the Government Integrated Financial Management Information System (GIFMIS) and the FIRS TaxPro MAX platform, compliance gaps in government agencies continue to cause significant revenue losses and recurring audit issues.
“This workshop is not just an opportunity to share knowledge, but a strategic turning point to co-design solutions that will close the existing gaps and build a smarter, more efficient, and technology-driven tax compliance culture in Nigeria,” he said.
Adedeji emphasized that when public sector institutions fail to remit taxes correctly, it sends the wrong message to the private sector and citizens.
“When government institutions are tax-compliant, the message it sends to the private sector and to citizens is powerful: that no one is above the law, and that transparency begins at home. Our credibility as public institutions is tested first by our own adherence to tax regulations. If we must grow revenue to meet our national development priorities, then we must begin by ensuring that public sector actors play by the rules and help others do the same,” he said.
The FIRS boss said the agency is committed to building stronger ties with the OAGF, establishing clear reporting and escalation channels for tax remittance lapses, embedding tax compliance education in the training curriculum for public finance officers, and improving real-time remittance tracking through innovations like TaxPro MAX.
Also speaking, the Accountant-General of the Federation, Shamsudeen Ogunjimi, who officially opened the engagement, said the collaborative effort is key to achieving President Bola Tinubu’s target of a $1 trillion economy by 2030.
He stressed that tax compliance is no longer optional in the current economic climate.
“Taxation remains the lifeblood of any economy, and for us in Nigeria, improving tax compliance is not just a fiscal priority but a national imperative. One of the key objectives of the Renewed Hope Agenda of Mr President is to diversify revenue sources and reduce reliance on volatile oil revenues; in order to achieve this, collaboration between revenue-generating agencies and other stakeholders becomes indispensable,” he said.
He commended the FIRS for expanding the tax net and digitising tax administration processes for efficiency, urging participants to develop actionable solutions to enhance compliance and revenue generation.
