The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has stated that President Bola Tinubu is deeply concerned about the welfare of Nigeria’s informal sector operators, who represent a significant portion of the country’s labour force.
A statement from the FIRS said Adedeji spoke during the 157th meeting of the Joint Tax Board (JTB) held on Monday in Ibadan, Oyo State. He drew attention to recent data from the National Bureau of Statistics (NBS) indicating that workers in the informal sector accounted for 92.6 percent of the total employed population in Nigeria as of the first quarter of 2023.
The FIRS chairman, who also chairs the Joint Tax Board, linked the recent drop in Nigeria’s unemployment figures to the formal recognition of informal work by the NBS. He used the occasion to call for a collaborative, data-driven approach to bringing structure to the informal economy rather than pursuing aggressive taxation.
“I will rather support formalisation using accurate data instead of taxing them outright,” Adedeji said. “President Bola Tinubu has been clear: the focus should be on taxing the fruits, not the seeds, so we don’t destroy what people have struggled to build.”
The JTB meeting, themed “Taxation of the Informal Sector: Potentials and Challenges”, brought together heads of the 36 state Internal Revenue Services to discuss sustainable and inclusive ways of engaging the informal economy.
Adedeji urged participants to explore innovative strategies that would make it easier for informal sector actors to transition into the formal system, where they can enjoy access to financial services, social security, and legal protections. He also revealed that plans are underway to transform the Joint Tax Board into the Joint Revenue Board (JRB), which will have a broader mandate and operational scope.
According to him, the proposed JRB will support harmonised, technology-driven tax administration systems that will reduce duplication, streamline taxpayer engagement, and boost overall efficiency.
The meeting was hosted by Oyo State Governor, Seyi Makinde, who welcomed the tax administrators and called for collective action to widen Nigeria’s tax net without undermining the resilience of the informal sector.
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“We must not only be strategic but also humane in our approach,” the governor said. “The objective is not merely to grow revenue, but to uplift and empower those in the informal economy so they can thrive and contribute meaningfully.”
Governor Makinde also shared some of the state’s recent fiscal reforms aimed at increasing internally generated revenue while maintaining a pro-business environment. He noted that balancing fiscal responsibility with inclusive economic growth remains a top priority for his administration.
The Ibadan gathering marked a critical moment in the country’s fiscal policy dialogue, with a consensus emerging that inclusion and formalisation, rather than enforcement alone, will be key to integrating Nigeria’s vast informal workforce into the tax ecosystem.
Participants expressed optimism that with coordinated efforts and the strategic use of data, Nigeria can build a more equitable and efficient tax system that supports sustainable development.