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Tag: Dr Zacch Adedeji

  • How Nigeria can move from potential to economic prosperity, by NRS boss

    How Nigeria can move from potential to economic prosperity, by NRS boss

    For Nigeria to attain sustainable economic growth and prosperity, there must be a paradigm shift from  dependence on raw materials’ exports to one that embraces ideas, innovation and production of complex products, the Chairman, Nigeria Revenue Service (NRS), Dr Zacch Adedeji, has said.

    Adedeji, who made the submission yesterday while delivering the maiden Distinguished Personality Lecture of the Faculty of Administration, Obafemi Awolowo University (OAU), Ile-Ife, Osun State, stressed the need to rethink growth through the lens of complexity, by not just producing more of the same stuff.

    The Special Adviser on Media, to the NRS chief, Dare Adekanmbi, in a statement, said Adedeji, in the lecture entitled, ‘From Potential to Prosperity: Export-led Economy’,  lamented that Nigeria possesses a high-tech oil sector and low-productivity informal sector, and lack the vibrant labour-absorbing industrial base that serves as a bridge to higher complexity.”

    He said Nigeria witnessed stagnation in its exportation drive for three decades between 1998 to 2023, and only added six new products in its export basket list between 2008 and 2023, adding that “because of our current position, the Harvard Atlas concluded that we are positioned to take advantage of very few opportunities to diversify using what we already know.”

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    Adedeji urged Nigeria to learn from the world by comparative study of success and failure like Vietnam, Bangladesh, Indonesia, South Africa and Brazil.

    “We are not just looking at numbers in a vacuum; we are looking at the strategic choices made by nations like Vietnam, Indonesia, Bangladesh, Brazil and South Africa over the same 25-year period,” saying “while there are many ways to underperform, the path to success is remarkably consistent: it is defined by a clear strategy to build economic complexity.

    “When we put these stories together, the divergence is clear. Vietnam used global trade to build a resilient, complex economy, while the others remained dependent on natural resources, or a single low-tech niche.”

    Continuing, Adedeji said “there are three big lessons here for us in Nigeria as we think about our roadmap. First, avoiding the resource curse is necessary, but it is not enough. You need a proactive strategy to build productive capabilities,” he added..

    He said “Vietnam’s success came from integrating itself into Global Value Chains (GVCs). They positioned themselves as the assembly hub for the world’s electronics, importing high-tech parts and exporting finished products.This allowed them to “borrow” technology and management skills from abroad to build their own know-how.

    “Nigeria, on the other hand,” he posited, “remains a supplier of raw materials to these chains, not an active participant within them. We must realise that productive capabilities are not permanent. The examples of South Africa and Brazil show us that you can actually lose your industrial edge if you are not careful. Over-reliance on the easy path of resource extraction creates economic and political incentives that crowd out the difficult, long-term work of building an industrial base.”

    He said that for Nigeria, which is at an even earlier stage of development and even less diversified than these nations, the warning is stark. “Relying solely on our natural endowments isn’t just a path to stagnation; it’s a path to regression. The global economy increasingly rewards knowledge and complexity, not just what you can dig out of the ground. If we want to move from potential to prosperity, we must stop being just a source of raw materials, and start being a source of ideas, innovation, and complex products.

    Adedeji said that President Bola Tinubu has already begun the difficult work of rebuilding the economy to ensure collective knowledge to innovate, produce and build a resilient economy.

    “The journey from potential to prosperity” in his word, “is not a short one, but with the right map and the right resolve, it is a journey we can finally complete,’ he added.

  • FIRS chairman offers partnership opportunities to varsities

    FIRS chairman offers partnership opportunities to varsities

    The Executive Chairman, Federal Inland Revenue Service (FIRS) Dr Zacch Adedeji has offered partnership opportunities to tertiary institutions, saying the agency was ready to support universities and other tertiary institutions to be incubators of innovation, providing solutions to real-world problems. 

    Adedeji made the offer while delivering the 2025 Distinguished Lecture of the University of Ilesa, Osun State.

    While speaking on the topic ‘Economic Resilience in an Era of Dwindling Revenue,’ the FIRS boss reeled out analysis of the current financial status of Nigeria, and offered practical solutions, explaining how the country is building a resilient economy under the Renewed Hope Agenda. 

    He highlighted the reforms and initiatives undertaken by the tax agency under his leadership to include automation and digitization; strategic reforms leading to expansion and modernization of the tax base; collaboration with states for tax harmonization as well as institutional repositioning to earn public trust.

    The FIRS boss said it was important to restructure the productive base of the economy from crude oil and embrace a system with multiple engines of growth in agro-processing, digital economy, creative industry and solid minerals, among others.

    Adedeji, however, pointed out that the task of building economic resilience does not lie solely with the government, stressing that academics, among other stakeholders, should play their own role by exploring ways to produce researches that proffer solutions to contemporary challenges. He said the FIRS under his leadership was ready to embrace partnerships that will support such academic efforts that will bridge the town-gown gap.

    He listed possible partnership areas as joint research projects on domestic revenue mobilization, tax equity or digitization or creation of tax policy innovation hubs where academics and practitioners can co-develop policy prototypes and test scalable ideas. 

    He charged the students to stand out, saying “… in building a resilient Nigeria, we need minds that can think critically, hands that can build institutionally, and hearts that serve patriotically.”

    Adedeji praised the vice chancellor of the university, Prof. Taiwo Asaolu, who was his lecturer at the Obafemi Awolowo University, Ile-Ife. 

    The tax revenue tzar recalled how the then Dr Asaolu paid for his final stage examinations of the Institute of Chattered Accountants (ICAN) during his second year as an undergraduate. 

    He told an emotion-gripped audience how he had already resigned to fate due to lack of funds to register for the examinations but that Asaolu on sighting him in a mood showing that he was not preparing for the examinations, inquired why he was not studying. 

    Adedeji recalled that on hearing his predicament, his lecturer fumed for keeping such a personal challenge to himself, recalling that he drew him to his office immediately where he signed for him a personal cheque of an amount covering the needed sum. 

    He said: “I sat for the examinations and passed. That was how I became a chartered accountant in my Part 2 as an undergraduate.” 

    His revelation drew terrific applause from the audience, made up of government representatives, lecturers, students and other guests. 

    Still highlighting Asaolu’s uncommon show of support, Adedeji recalled an ugly incident that occurred while writing the ICAN final examination when a supervisor accused him of cheating, an offence that was punishable with a six-year ban. He said Prof. Asaolu staked his ICAN certificate, insisting that he (Adedeji) could never have cheated because he knew him and his academic strength well.

    To prove that his student was wrongly accused, he said Asaolu offered the supervisor two alternative solutions – that the supervisor should read through Adedeji’s answers and compare them with the textbook or notes he found under his desk, and seize his (Ashaolu’s) ICAN certificate if they bear semblance . 

    Alternatively, Adedeji should be given a new answer sheet with a strict instruction not to answer the questions he chose in his submitted answered sheet. 

    Asaolu asked the supervisor to seize his ICAN certificate if Adedeji was unable to answer the questions excellently. 

    The supervisor chose the latter. He said that he answered other questions and passed the examination excellently, attesting to Asaolu’s confidence in him. 

    The FIRS boss noted that Ashaolu’s stance on the issue prevented him from being wrongly punished with a six-year ban by the professional body. He expressed his eternal gratitude to the vice chancellor for the impact he made on him as a young adult. 

    “That is why Professor Asaolu is not just my lecturer; he is my father,” the FIRS boss proudly declared. 

    Welcoming guests earlier, Prof. Asaolu said the two years old institution aims to use the public lecture as a platform for discourse on pressing global and national issues, while seeking sustainable solutions to the nation’s economic challenges.

  • Zacch Adedeji: Bringing sanitythrough regulation to crypto World

    Zacch Adedeji: Bringing sanitythrough regulation to crypto World

    • By Arabinrin Aderonke

    s Nigeria dives into the world of digital currencies, one man is stepping up to make sure the country’s tax laws don’t get left behind, Dr Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS) has shared in his recent plans to revamp Nigeria’s tax system to change the game for how cryptocurrencies are taxed.

    Cryptocurrencies have rapidly gained popularity worldwide, and Nigeria is no exception. With its engagement in digital currency trading, the country faces the pressing challenge of integrating these assets into a coherent tax framework. Current regulations, such as the Stamp Duty Act of 1939, are outdated and inadequate for addressing the complexities introduced by digital currencies. Recognizing this gap, the Tax Boss is bringing a major update to Nigeria’s tax system to make it fit better with today’s financial realities.

    Cryptocurrency has become a major financial phenomenon in Nigeria. With substantial trading volumes and a growing base of users, digital assets like Bitcoin and Ethereum are not just a trend but a growing sector of the economy. This rapid growth presents both opportunities and challenges, highlighting the need for a regulatory framework that can effectively manage the evolving financial world.

    Countries around the world are working to figure out how to regulate and tax cryptocurrencies. In the United States, cryptocurrencies are treated as property, and any profits from them are subject to capital gains tax. The United Kingdom and Germany also classify digital currencies as assets and impose capital gains tax on them. Japan has a more detailed approach, taxing cryptocurrency gains based on whether they are considered miscellaneous income or capital gains. These global practices provide useful examples of how different regions are addressing the challenges posed by digital assets.

    Dr. Zacch’s changes to Nigeria’s tax system, especially regarding this new update on cryptocurrency, bring with it benefits for Nigerians. By setting clear rules for digital assets, these reforms make it easier for people and businesses to understand and meet their tax responsibilities. This clarity helps boost confidence in the cryptocurrency market and encourages more people to get involved.

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    The new rules also protect consumers by reducing the risk of fraud and scams, making the market safer. Additionally, better regulation means more tax revenue for the government, which can be used to improve public services and infrastructure. By tackling issues like tax evasion and illegal activities, the changes help create a more stable financial environment. Aligning Nigeria’s tax policies with global standards also helps attract international business and investment. It suffices to say that this move is set to create a more transparent, secure, and thriving financial system for Nigeria.

    As the digital economy evolves, keeping tax regulations up to date with technological advancements is important. Dr. Zacch, in his efforts, is taking charge to modernize Nigeria’s tax system to effectively incorporate cryptocurrencies. His approach involves establishing clear, practical guidelines for digital assets, simplifying tax reporting, and leveraging technology to ease compliance.

    The Tax Boss’s commitment ensures that Nigeria’s tax policies adapt to the growing influence of digital currencies. By collaborating with businesses and taxpayers, he aims to build a tax framework that supports innovation while making it easier for everyone to meet their tax responsibilities. As other nations refine their approaches to cryptocurrency taxation, Dr. Zacch’s leadership is making the necessary change and keeping Nigeria’s system flexible and responsive to new developments in the digital financial economy.

    • Arabinrin Aderonke is an Award-Winning investigative journalist and 2016 Finalist of the CNN African Journalist Award. She currently serves as Technical Assistant, Broadcast Media at the Federal Inland Revenue Service, FIRS.