Tag: FIRS

The Federal Inland Revenue Service (FIRS) is set to hold the second edition of its 2025 Tax Clinic in Abuja through the Emerging Taxpayers’ Group (ETG).

The clinic is part of ongoing efforts to simplify tax processes, educate citizens, and encourage voluntary compliance ahead of the take off of the implementation of new tax laws.

According to the Service, the Abuja Tax Clinic is designed to help small business owners, entrepreneurs, and professionals better understand their tax obligations and the transition into the Nigeria Revenue Service (NRS) — a key component of the ongoing reforms aimed at modernizing and harmonizing the nation’s tax administration system.

The Executive Chairman of FIRS, Dr. Zacch Adedeji, described the Tax Clinic as a vital part of the Service’s inclusive and citizen-centered reform agenda.

“Our goal is to simplify tax, not to complicate it,” Dr. Adedeji said. “The Tax Clinic is designed to bring the Service closer to the people, to listen, educate, and foster a culture of voluntary compliance through mutual understanding and trust.”

The one-day event, themed “Tax Clinic for Tax Clarity: Transitioning into NRS,” will take place on Tuesday, October 28, 2025, at the Lagbaja Hall, Nigerian Army Conference Centre & Suites (NACCAS), Asokoro, Abuja, starting at 8:00 a.m.

The clinic will feature presentations, panel discussions, and interactive service desks hosted by partner institutions, including the FIRS, Corporate Affairs Commission (CAC), Joint Tax Board (JTB), Federal Capital Territory Internal Revenue Service (FCT-IRS), National Identity Management Commission (NIMC), Nigerian Investment Promotion Commission (NIPC), Tax Appeal Tribunal (TAT), Chartered Institute of Taxation of Nigeria (CITN), Institute of Chartered Accountants of Nigeria (ICAN), Association of National Accountants of Nigeria (ANAN), Nigerian Bar Association (NBA), and the Nigerian Medical Association (NMA).

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Participants will receive on-site advisory support on tax registration, filing, and dispute resolution. 

The NMA will also provide free basic health checks to attendees throughout the event.

Building on the success of the Lagos edition, which recorded strong public engagement and interaction between taxpayers and revenue institutions, the Abuja edition is expected to attract an even larger audience. 

To encourage early participation, the first 400 participants to register physically at the venue will receive special branded gifts from FIRS.

To ensure inclusivity, the Tax Clinic will also be livestreamed via Zoom and YouTube to enable participation from taxpayers, business communities, and stakeholders across the country and beyond.

Speaking ahead of the event, Mr. Collins Osagie Omokaro, Special Adviser on Communications and Advocacy to the Executive Chairman of FIRS, said the Tax Clinic represents a new era of proactive engagement between the Service and taxpayers.

“Under Dr. Adedeji’s leadership, the Service has prioritized accessibility and empathy in tax administration. The Tax Clinic is not just about compliance, it is about connection. It shows that when taxpayers are informed and supported, they become partners in national development,” Omokaro stated.

Through initiatives such as the Tax Clinic, FIRS continues to pursue its vision of “Simplifying Tax, Maximising Revenue,” and promoting a tax culture built on transparency, inclusion, and service.

The Federal Inland Revenue Service (FIRS) has detailed how the newly established Office of the Tax Ombuds (OTO), a key feature of President Bola Tinubu’s new tax legislation, will mediate complaints and resolve grievances between tax authorities and the public when the new tax regime takes effect on January 1, 2026.

During the FIRS Taxpayer Webinar Series (TWS), Coordinating Directors at the FIRS, Dr. Dick Irri of the Government and Medium Taxpayers Group (GMTG) and Mr. Tamadi Shettima of the Special Duties Group (SDG), urged taxpayers and FIRS staff to familiarise themselves with the ongoing reforms in the nation’s tax system.

Irri described the Ombud as an essential mechanism for resolving disputes in a fair and accessible manner. 

“I just want to encourage everyone to take note of this new concept coming on board. In Tax Ombud, in African tradition, we have a belief that you cannot beat a child and not expect the child to cry,” he said. 

“So, taxpayers who may be at risk of repaying or have complained about the attitude of revenue officials or behaviours that are not satisfactory can complain to them. And that is the essence of the Tax Ombud, so to speak, in a layman’s language. It’s not everything that must go to court.”

Shettima described the introduction of the Ombud as a “noble initiative” that will safeguard taxpayer rights and privileges while promoting awareness of their obligations. He said the reform would ensure “a seamless and fair tax administration process that upholds trust between citizens and tax authorities.”

Mrs. Lovette Ononuga, Director of the Taxpayer Services Department (TPSD), said the creation of the Ombud reflects the government’s recognition of taxpayers’ central role in national development. “By embedding the Ombud function in our tax system, the government is not only strengthening revenue mobilisation but also building a tax culture based on trust and mutual respect,” she stated.

According to her, the initiative aligns with President Tinubu’s “Renewed Hope Agenda,” which places fairness, inclusiveness, and accountability at the centre of governance. “FIRS is determined to facilitate compliance, improve service delivery, and ensure that every taxpayer feels valued as a true partner in Nigeria’s developmental journey,” she said.

Bolanle Azeez, Acting Director of the Tax Policy and Advisory Department, and Mr. Olufemi Olarinde, Head of the Fiscal and Tax Reforms Implementation Division, explained the role and benefits of the Ombud in Nigeria’s evolving tax landscape.

According to Azeez, the Ombud is a crucial institution under the new tax regime. “It balances the relationship between citizens and other relevant agencies. Its role promotes fairness, transparency, and accountability. Ultimately, it strengthens tax administration and taxpayer trust,” she said.

Olarinde traced the origin and evolution of the Ombudsman model, noting that it has become a global standard for promoting fairness in governance and public administration. “The Tax Ombuds model began in the late 20th century as countries sought to enhance taxpayer rights and fair tax administration,” he explained. 

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“The Ombudsman concept originated in Sweden in 1809, designed to protect citizens against maladministration. The idea spread globally, with specialised ombudsman offices now established for banking, insurance, and taxation.”

He further stated that Nigeria’s adoption of the Office of the Tax Ombud demonstrates the country’s commitment to transparency and fairness in tax administration.

 “The Office of the Tax Ombuds will promote transparency, strengthen taxpayer confidence, improve compliance, and ultimately promote sustainable revenue growth,” Olarinde added.

The Office of the Tax Ombud offers significant advantages for taxpayers and the tax authorities. 

For taxpayers, it ensures fair treatment and protection from abuse, maladministration, or delays; provides a simple, low-cost, and non-judicial means of resolving disputes; and enhances awareness of their rights and entitlements. It also offers faster complaint resolution compared to lengthy court processes and encourages voluntary tax compliance.

For the tax authorities, the Ombud promotes accountability and integrity, reduces the backlog of disputes and court cases, strengthens public confidence in the system, and provides feedback to improve internal processes and efficiency. It also helps identify systemic policy issues, contributing to long-term reform of Nigeria’s tax administration.

According to the legislation, Section 41 (1a–i) of the Act defines the powers of the Office of the Tax Ombud to include serving as an independent arbiter for complaints related to taxes, levies, duties, and fees; reviewing complaints against tax officials; investigating taxpayer grievances; inspecting tax offices; inviting witnesses; making recommendations; initiating legal proceedings on behalf of taxpayers; and identifying systemic fiscal issues that affect tax policy.

The law also authorises the Ombud to “serve as a watchdog against any arbitrary fiscal policy of the Government or by any of its agencies and report such policy to the National Assembly.” Importantly, Section 41 (2) specifies that “the Office of the Tax Ombud shall not charge a fee” for its services, ensuring accessibility for all taxpayers.

However, Section 43 (a–d) limits the Ombud’s powers, stating that it cannot interpret tax laws beyond procedural or administrative matters, intervene in cases already before a court or tribunal, determine tax liabilities or assessments, or review personal grievances from tax officials.

With the establishment of the Office of the Tax Ombud, Nigeria joins the ranks of nations with independent tax mediation institutions designed to enhance fairness, transparency, and public confidence in tax administration.

The initiative represents a major milestone in President Tinubu’s tax reform agenda, which seeks to modernise Nigeria’s fiscal system, reduce disputes, and build a more responsive, citizen-centered tax administration ahead of the 2026 implementation date.

…states repay N1.85tn Debt

The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has disclosed that nearly 70 percent of funds shared at monthly Federation Account Allocation Committee (FAAC) meetings now come from taxes collected by the agency.

Adedeji disclosed this in an interview marking his two years in office, where he said the surge in tax revenue has strengthened fiscal stability across the country.

According to him, improved collections have enabled 30 states to repay N1.85 trillion in debts within the past 18 months.

“Debt servicing costs that once consumed 90 per cent of government revenue have now dropped to about 50 per cent. External reserves have also grown on the back of stronger fiscal stability,” he said.

The FIRS boss praised President Bola Tinubu’s administration for creating a tax environment that eases compliance.

“The president has fulfilled his campaign promise to simplify tax compliance and remove hurdles faced by taxpayers,” Adedeji noted.

Adedeji explained that the government’s tax reforms—the most far-reaching since independence—are designed to reduce the burden on citizens while improving government revenue. He pointed out that food, education, shared transportation, and agriculture have been exempted from value-added tax (VAT).

“The reforms are already yielding results. Nigeria’s tax-to-GDP ratio has risen from 10 per cent to 13.5 per cent in just two years, with a target of 18 per cent by 2027. In August alone, the federation account disbursed a record N2 trillion,” he stated.

The FIRS chairman admitted that the transition has not been without difficulties. “It is like the pain of a woman in labour,” he said, while stressing that government interventions are already helping to cushion the effects. These include the rollout of compressed natural gas (CNG) buses and crude-for-naira support for local refiners, which he said are already reflected in fuel prices.

Adedeji outlined how the new consolidated tax law strengthens compliance by restructuring FIRS operations. Taxpayers are now segmented into small, medium, and large categories, with one-stop shops created to ease filing and payments.

“We are service providers to taxpayers rather than just an enforcement agency,” he explained. “When companies are doing well, expanding, and making profits, we will benefit from their growth. Our task is to remove hurdles in their way, and that is what the president has done with these new laws.”

He also clarified the decision to rename the FIRS as the Nigeria Revenue Service (NRS). “The word ‘federal’ gave the wrong impression that we only collect for the federal government. In reality, we collect VAT, of which 90 per cent belongs to the states,” he said.

On the controversial petrol surcharge included in the new law, Adedeji assured that it would not apply automatically. “It will only take effect if activated by a ministerial order and published in the official gazette,” he noted.

Adedeji said the consolidation of multiple tax laws into a single code—set to take effect in January—will simplify Nigeria’s tax system. The new framework reduces the number of tax types to single digits, eliminates tax for businesses with annual turnover below N50 million, and adjusts personal income tax thresholds to shield low-income earners.

On June 26, 2025, President Tinubu signed into law four major bills: the Nigeria Tax Act, Nigeria Tax Administration Act, Nigeria Revenue Service Establishment Act, and the Joint Revenue Board Establishment Act. The laws aim to broaden the tax base, improve compliance, and enhance transparency across all tiers of government.

Adedeji further linked Nigeria’s fiscal improvement to Tinubu’s wider economic reforms. “The health of the federation account has blossomed greatly, as there are no bogus subsidy claims to deplete the pool,” he said, referring to the removal of fuel subsidy and the unification of exchange rates.

The Federal Inland Revenue Service (FIRS) has been thrown into mourning following the death of four of its staff members in a fire incident that engulfed Afriland Towers on Broad Street, Lagos, on Tuesday.

The deceased officials, who were working at one of the two FIRS offices located on the sixth and seventh floors of the building, were identified as Mrs. Ekelikhostse George, an Assistant Director; Mr. David Sunday-Jatto, an Assistant Director; Mrs. Nkem Onyemelukwe, a Senior Manager; and Mr. Peter Ifaranmaye, a Manager.

A statement issued by Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman, described the development as a devastating loss to the agency.

“It is with a heavy heart that FIRS announces the tragic loss of four of its staff members during the fire incident at Afriland Towers, Broad Street, Lagos, on Tuesday,” the statement said.

According to the Service, the fire broke out while staff were at work in its Medium Tax Audit and Onikan Emerging Tax Office.

“FIRS is one of the tenants occupying the Towers, with our Medium Tax Audit and Onikan Emerging Tax Office housed on the sixth and seventh floors. Our Security and Safety officials quickly mobilized and contacted the fire service as soon as they were alerted. On getting to the scene, thick dark smoke was already billowing out of the building,” Adekanmbi explained.

The management said the tragedy has left the entire workforce in shock and deep sorrow, particularly as the deceased were dedicated professionals whose service to the nation was widely acknowledged.

“The Management and entire staff are in deep shock and sorrow over the development. They offer their condolences to the grieving families and are in touch with the families of our departed colleagues whose commitment to excellence, dedication, and professionalism were never in doubt. We will provide all the necessary support at this trying time,” the statement added.

FIRS further disclosed that it is working closely with relevant agencies in Lagos to ascertain the cause of the fire while also initiating a review of safety protocols across its offices nationwide.

“We are working in collaboration with all relevant agencies in Lagos to get to the root cause of the unfortunate incident. While this is going on, we will be reviewing safety measures across FIRS offices in both rented and owned buildings nationwide,” the Service noted.

The incident has sparked concerns over safety standards in high-rise office complexes across the country, with FIRS pledging to strengthen preventive measures to protect staff across its operations.