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Tag: Zacch Adedeji

  • What taxpayers should expect from Jan, by FIRS chair

    What taxpayers should expect from Jan, by FIRS chair

    Federal Inland Revenue Service (FIRS) Chairman, Dr Zacch Adedeji, speaks on two years of his headship of the apex tax agency, the reforms of President Bola Tinubu and what the economy stands to gain from next year in this interview by Dare Adekanbi.

    It is two years since you took over as chairman of the Federal Inland Revenue Service (FIRS). How has the journey been and what would you give as your achievements in the agency?

    When we set out on this journey, our mind was set on reforming the fiscal landscape of Nigeria and consequently changing the revenue structure of the Federation. To the glory of God, two years on, the figures are justifying that the reforms we embarked upon were the right steps to take. Let me start from the latest evidence, for the first time the three tiers of government shared a record monthly allocation in excess of N2trillion. States and local government councils are now more empowered to carry out their responsibilities to Nigerians in their domains.  Nearly 70 per cent of what the three tiers of government gather every month to share comes from tax revenue collected by FIRS. This is an eloquent testimony to the reforms spearheaded by President Bola Ahmed Tinubu. So, all credits must go to the president for the courage he has demonstrated in leadership by setting the economic fundamentals right in order for the reforms to bring plenty fruits and gains for the Federation. By removing subsidy on petrol and collapsing the hitherto dual exchange rate windows, floating the Naira consequently, the health of the Federation account has blossomed greatly, as there are no bogus subsidy claims that would naturally have depleted the accruals into the pool. 

    In addition to these, the President in his inaugural speech, promised to make his industrial and economic policy one that will remove hurdles in the way of businesses. As a follow up to that, he set up a committee which worked so hard with other stakeholders to bring about the new tax laws that will go into effect from January next year. This is the best thing that has happened to Nigeria’s fiscal ecosystem since Independence in 1960. The President has fulfilled his promise to make businesses flourish by removing all burdens and hurdles. This has been done with the new tax laws which will eliminate multiple taxes. The president said we should not have more than single digit tax types and that has been achieved now. The various tax laws which are scattered in several legislations have now been consolidated and streamlined into a single document. Tax is not easy to collect anywhere in the world and it will be made more difficult if taxpayers go through unnecessary hurdles before they can pay taxes. The fact that these laws were scattered in various legislations gives room for different applications and make compliance cumbersome. But all that is history now. Perhaps the biggest deal for Nigerians is that food, education, shared transportation, agriculture are going to be VAT-free. This will have positive effect on more than 80 per cent of Nigerians. This is in addition to the tax adjustment of personal income of those in the low-income brackets. Small businesses with turnover of N50m will not pay tax. All these go to show that President Tinubu is a compassionate leader who knows there the shoes pinch for businesses. A more business-friendly environment has now been created with these new laws. 

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    As an agency, FIRS has grown in leaps and bounds in the last two years. Carrying out the president’s mandate, we re-structured our internal operations from the functional tax typologies to a customer-centric approach. Now, all tax types are paid at a one-stop shop. How do I mean? We put the taxpayers into the emerging tax, medium and government tax as well as large tax buckets. The categorisation is done according to the turnover thresholds of the companies, with those having turnover of N5b and above in the large taxpayers’ bucket. What this means is that these companies pay all the tax types they need to pay at a single tax office which caters for their categories. We no longer have a situation where several offices or units are writing the same company and asking for different things about the VAT or CIT and so on. This has engendered a shift in the mental geography of our staff and has seen a transition to a Federal Inland Revenue Service that is customer-focused. We are service providers to the taxpayers rather than coming across to them as a tax law enforcement agency. Non-oil tax revenue has grown exponentially and for the first time in a long while, we met and surpassed our oil and gas tax revenue target for this year, thanks to the improved security situation in the country which has energised the oil companies to grow and make profits.

    Despite your praise for the President, there are those who say much has not really done much for the country and its citizens since he took over in 2023…

    Even you journalists know that it will be inaccurate for anyone to come with such claims. Yes, the removal of subsidy on petrol created some disruptions in the living conditions of most Nigerians. Transportation costs went up, as did prices of goods and services. The disruptions can be likened to the pain of a woman in labour. After she is delivered of the baby, comfort and bliss will follow. To cushion the effect, President Tinubu came up with the compressed natural gas initiative which has seen millions of vehicles converted from petrol to CNG. CNG buses were also procured and distributed to states. From the height that it went earlier in the year, petrol price is coming down. Don’t forget that we also came up with the crude-for-naira initiative which is helping local refiners get access to crude oil in naira. The exchange rate that went up is also coming down. The FX market has navigated away from arbitrage which used to be the order of the day. Foreign airlines and others were owed $7b by Nigeria. President Tinubu came and cleared the debt. About 90 per cent of revenue was devoted to servicing debt, but the rate has gone down to about 50 per cent in two years. Tax-to-GDP ratio was 10% when we took over, now it is 13.5%. But that is not where we are going. We are aiming to beat Africa’s average of 15 per cent and achieve 18 per cent by 2027. External reserves have climbed up to $41b from $4b.

    The Nigeria Education Loan Fund (NELFUND) created by the President Tinubu has seen almost N90bn disbursed to over 450, 000 students across the country.

    There are many road projects going on and some completed across the country, covering all the six geo-political zones. These roads are opening up economic corridors across the country. Federal allocations to state have grown by almost 70%, enabling them to enjoy a great level of fiscal stability and debt management. According to the figures from DMO, about 30 states repaid N1.85trillion in debt over 18 months. We should keep these figures in perspective when X-raying this Administration.

    What is the truth about this 5% surcharge on petrol?

    The problem with the people bandying this about is either that they don’t read or they read but do not understand. In my earlier comments, I said there were many laws about taxes which were scattered in various legislations, making compliance difficult for taxpayers. To remove the burden, we harmonised these laws into a single document and one of such laws is the petrol tax. The law had existed under the FERMA Act 2007 and the purpose was to use the money therefrom for road maintenance. The new law lays down the procedure for this provision to come into effect. There must be a commencement order from the Minister of Finance which will be publicly announced and also gazetted. So, it does not automatically mean that this provision will go into effect from January next year. Remember, one of the first set of reliefs President Tinubu brought to Nigerians was to remove 7.5% VAT on diesel. Is it that same president that will now impose additional cost on petrol for the citizens at this time?

    Why was FIRS changed to Nigeria Revenue Service and what should taxpayers expect from the agency when it goes full throttle next year?

    Let me start from what the taxpayers should expect from us. They should expect a fair tax administration that will also come without hassles. Our core mandate is simple: assess, collect and account for revenue accruing to the Federation. In doing this, we will be fairer as a tax authority and continue to provide quality service to our only customers, that is, the taxpayers. The president has done a lot in bringing reliefs to Nigerians and businesses with the new tax laws. Compliance should be easier now and of course our advocacy has been on voluntary compliance. Do the right thing at all times and don’t wait till our tax people visit your premises. If they have any issue, they should get in touch with us. With the new tax laws, evasion will be pretty difficult. Companies should be diligent in their tax planning. Those who still think they can find a way to game the system will find out that evasion or trying to cut corners will be costlier than being compliant and honest.

    There is one proverb in my language, “If the main course is not satisfying, there is nothing anybody can give you as a gift that will be enough.” So, if within, we cannot develop Nigeria, nobody will come and develop it for us. President Tinubu’s mantra has always been: “I’m not here to tax poverty; I’m here to tax prosperity. My government will tax the fruits of your investments and not the seeds.” When companies are doing well and are making profits and are expanding their operations, we will benefit from their doing well. The tax rate is simple. If the base is 10, we will have three. If the base increases to 20, we will have six. If the base increases to 30, we will have nine. So, if I want to have more, it’s not by going on an aggressive revenue drive. It is to help the companies to do well and that is when I will do well too. So, that is why, for us at Nigeria Revenue Service, we are here to remove all the hurdles in the way of our taxpayers. This is what President Tinubu has done with the new tax laws. He has fulfilled his electoral promise and we should all commend him for being a promise keeper.

    On why we are changing from Federal Inland Revenue Service to the Nigeria Revenue Service, the word federal in the name of the agency gives the erroneous impression that we are only collecting tax revenue for the federal government. When you say ‘Inland’, it wrongly means we are only collecting money from Nigeria, which is not what we are doing. I will give you examples. We collect VAT, 90% of which is for states. When you therefore say ‘federal’, it means we are not representing what we do. The new name, NRS, shows we are the sole tax authority for all revenue collection for the Nigerian federation according to our laws.

  • Adedeji and PBAT’s $1 trillion economy vision

    Adedeji and PBAT’s $1 trillion economy vision

    By Jack Okude

    The latest news on Nigeria’s growing tax revenue haul is something to cheer for many reasons. The Federal Inland Revenue Service (FIRS) said it has collected N20.62 trillion in tax revenue between January and August, a period of eight months. FIRS chairman, Zacch Adedeji, who reeled out the figure was ecstatic as was his audience of journalists.

    It was a massive jump of 40.8 percent compared to that of last year even as it outstrips the growth target of 16.4 percent for the year. Historical and a rare alignment of vision and ambition, the statistics churned out by Adedeji, a first-class accountant, only strengthens the argument that the FIRS top cat ranks among the best and most strategic appointments of President Bola Tinubu.

    Many factors are responsible for this increase which indexes a national economy on the path of recovery. It must be noted that Adedeji did not import personnel from overseas or from outer space to make this all-time high mark. He used existing personnel in the service all working in the same environment called Nigeria. Without any doubt, it underscores the difference effective leadership can make in an organisation. Adedeji’s pedigree, knowledge and scholarship lent him to the job. He is a proper and prime fit. He didn’t have to learn the ropes because as an A-grade chartered accountant, tax collection and management were no strangers to him. He found a natural and professional habitat at FIRS. This is global best practice; get the right personnel with the requisite skills set to critical positions.

    The deployment of modern technology is a critical factor in the unfolding FIRS tax-management story. When he assumed office as the youngest ever FIRS chairman, he served notice of navigating employees and operations through the uncharted waters of high-tech to eliminate instances of human intrusion with attendant fraudulent behaviours. He pledged a better future for tax collection, insisting that technology will not only reduce significantly the bottlenecks of bureaucracy but will also effectively manage operations for higher efficiency accentuated by speed and flawless transition from the field to the office. And he achieved that by moving FIRS operations from annual filing of Transfer Pricing Returns, and Country-by-Country Reporting (CbCR) notifications from e-TPPlat to the TaxPro-Max Platform without compromising personnel’s regular login credentials. The projection for 2025 was to achieve revenue target of N25.2 trillion. Hitting over N20 trillion by August with a good four months left means that the target will be exceeded. This September alone, revenue has surged to N3.65 trillion, a hefty jump of 411 percent from the N711 billion recorded in May 2023 when the Tinubu administration assumed office.

    There has been a raft of reforms in tax management. The non-oil tax receipts present an outstanding evidence of the success of the reforms, reaching an unprecedented N15.67 trillion, an increase of 49.7 percent. It was N10.47 trillion in 2024. This owes largely to the federal government renewed focus on growing non-oil export which has also greatly profited from the devaluation of the naira.

    As non-oil tax is nosing up, oil tax is also in the ascendancy, reaching N4.98 trillion as of August 31, 2025, up 19.4 percent from N4.18 trillion in the same period last year. The sustained peace in the oil-bearing Niger Delta region resulting in jump in crude oil production is a strong factor for the spike in oil tax revenue. The Tinubu reforms and undeniable security and improved surveillance of oil operations and infrastructure in the Niger Delta have restored investors’ confidence in oil and gas which has led to more investments in the sector. The reforms have also triggered a wave of impressive performance in both the service and primary sectors. Telecoms sector once bugged down by low returns has bounced back. This year alone, the sector is attracting about $3 billion in investments in infrastructure, according to report from the Nigerian Communications Commission (NCC).

    For the banking sector under Tinubu, it is happy days. Five major banks namely, United Bank for Africa (UBA) Plc, First Holdco Plc, Zenith Bank International Plc, Guaranty Trust Holding Company (GTCO) and Stanbic IBTC Holdings Plc reported strong growths in profitability and assets. Their pre-tax profit rose by about 70 per cent to N4.56 trillion in 2024.

    And as it is with the banks, so it has been with conglomerates that once dipped into the nadir of losses. Cement companies clawed their way from losses to profits this year. Pharmaceutical firms and consumer staple companies have also returned to the path of profitability. All of this equates to more taxes paid into the national tax basket. The increase in tax returns by FIRS is therefore a consequence of the positive yields in the Tinubu reforms. Much more, it shows that FIRS is effectively tracking the tax accruals.

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    This increase in tax collection further underscores the strengthened tax compliance measures and enhanced enforcement strategies implemented by the service, Adedeji said as he outlined the prospects of a better, more functional tax regime from next year when the new tax architecture arising from the freshly minted tax laws come into full implementation.

    On the flip side of non-oil tax revenue, the oil and gas sector also showed strong signs of recovery on account of the reforms introduced under Tinubu, especially the removal of petrol subsidy. In May 2023, for instance, collections from NNPC Limited were in the negative because what could have come in as tax revenue had gone into servicing outstanding subsidy arrears and other payments. The total accretion to the federation that month (May 2023) was a meagre N711 billion.  But by September 2025, the figure had risen to N3.6 trillion, a 411 percent jump.

    The vision of Tinubu to build a $1 trillion economy by 2030 is what it is: an ambitious agenda. Some people think it is unattainable. But not so for the likes of Adedeji. In him, you see a workman who understands his brief and who does not lack the courage and confidence to achieve and conquer heights. Watching him recently on television break down the tax synopsis and prognosis was supremely admirable. His understanding, courage and confidence were infectious and they elicit hope and faith in the Renewed Hope agenda of President Tinubu.

    • Okude, public policy analyst writes from Kano.

  • Zacch Adedeji and Nigeria’s container economists

    Zacch Adedeji and Nigeria’s container economists

    Every Nigerian assumes he is an expert and would have opinions even in areas he knows nothing about; that’s why newsstands are better gossip centres than most markets, especially the free readers’ corner.

    The opinions and notions that spew from such people and places are at best for comic relief to those that understand, a reason that after being exposed to such views which quickly gain traction, listening to experts on the same issue is humbling, more so if one has ventured the free readers’ submissions in the company of friends who respect you as knowledgeable and who they can rely on for a better understanding.

    That is exactly what has happened after our taxman, Zacch Adedeji, took an excursion into the concept of borrowing to fund a budget, as against the street understanding of the same concept

    That excursion has also birthed a new lexicon to our already bloated register where after explaining how budgeting and borrowing works globally, the erudite and cerebrally superlative Adedeji apparently for lack of words to use in dismissing the roadside analyst without sounding abusive described them as “container economists” for either reducing the complicated and adroitly managed financial system to the ‘ajo’ style of borrowing or the cocooning of a global concept to a village understanding.

    After breaking it down and giving live examples with structures around the group, a murmur of understanding erupted among those whose desire was to take Adedeji to task, and in moments of extreme conviction, heads bobbed up and down nodding with agreement and understanding.

    Adedeji took time to explain that borrowing is a component of every budget and that it is a test of a virile economy in the global economic ecosystem because every country that has a growing economy borrows for development and to test the vitality of the economy.

    He said if a budget is projected for a certain amount and a particular amount is raised as revenue, the shortfall between the revenue and expenditure would be raised as a loan to carry out development and meet the expected projections.

    Again, he explained that borrowing was for sustainability and cutting down future expenditure, which may come with higher costs.

    The taxman cited an example with the seat of power in Aso Rock and explained that if money used to construct it was borrowed, the cost of finance compared between what it was then and now will show that it was cheaper to do so then than now. He further gave an example of borrowing to execute a futuristic project like a road, which he said those who would use it in the future would pay their own contributions, as it was done ahead of time for them, so that it was meant to serve them and not mortgage their future.

    He challenged everyone to state if there has been any borrowing to pay salaries or spend on frivolities, a reason he said both President Bola Tinubu and the Minister of Finance, Wale Edun, keep harping on sustainable borrowings.

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    He said, “Thank you for your good question, because it is at the right time. Without trying to throw a jibe. What is the component of a budget of country? You have your revenue, you have your income and you have your expenditure, and you have loan, so if my expenditure for this year is N100,000 and I plan that my revenue is N80 and  I will borrow N20 and I have done revenue of N90 and I am borrowing according to what I have in the budget I’m borrowing 10, so what’s the problem in that?

    “Another thing people should understand is that borrowing is not a problem; don’t forget that banks are part of our economic ecosystem. There is no country or individual in the world that doesn’t borrow. When individuals or the government borrow from banks, they pay interest and it is from that interest that they pay their salaries, it is from salaries that they pay taxes to the states and it is from their profits that I collect taxes, so when you say you go for lending, that is why you hear sustainable from Mr. President and the Minister of Finance.

    Have you ever heard the Minister of Finance say he is borrowing to pay salaries or do anything, and why do you do it? I give you a typical example with this structure, where we are, if it were not built the time it was built, how much would it have cost us today? You borrow to beat a higher cost. Secondly, we borrow to beat what we call the matching concept in business, especially where you have continuity. Anything that you will use that will go beyond my lifetime, why should I use my time to do it? So when you build roads and you collect taxes in the future from anybody that will be using it in the future to pay their own fair share, so when you see us borrowing, it is part of an economic plan. So when you see any country that wants to grow, you must borrow because that is part of the ecosystem of a viable nation. So when those people who are just container economists talk about what they borrow, I just look at them”.

    It will take eating the humble pie to drop the already hardened notions about the wrong concept of borrowing to begin to view our misunderstanding as palpable and pitiable.

    With inflation dropping and a huge reduction in lending costs from the Central Bank of Nigeria, one can’t help but watch as the results of the policy predictions are tallying figures with reality, and food inflation is also bowing to policies, only showing that the economic team actually knows what they are doing.

    No wonder the President had warned that there would be initial pains followed by gains. Many appointees of the government had voiced that the economy was in very bad shape before President Tinubu mounted the saddle but with the results coming in and the sure footed expert touch to once bland areas of the economy, those who were stone in hand shouting away with the taxman have replaced the stoned with Naira saved for them through well thought out adroit policies matched with meticulous implementations that have seen the country emerging from the economic woods into the sunlight of prosperity which had eluded the country with poor leadership backed by emotional mouthing of prosperity without pointers.

    With the hands on and sure-footed experts like Adedeji matching figures with actions and visible achievements, Nigerians will soon sing Eldorado, and for once, we should leave areas that deserve the touch of expertise to experts. Zacch Adedeji is right.

    -Phebe Obong, Media and Communication Specialist, Accountability and Policy PR.

  • Borrowing inevitable for viable economy-Adedeji

    Borrowing inevitable for viable economy-Adedeji

    Chairman of the Nigeria Revenue Service (NRS), Dr Zacch Adedeji, has declared that borrowing is an indispensable part of the ecosystem of any viable economy, dismissing criticisms from opposition figures who suggest otherwise.

    Adedeji, who addressed State House Correspondents on Tuesday during the Meet-the-Press series organised by the Presidential Communications Team, said borrowing, when responsibly managed, is an essential tool for sustaining growth, spreading the burden of infrastructure financing, and stabilising the economy.

    “Borrowing is not a problem. There is no country or individual in the world that survives based only on income. Borrowing is part of the budget we submit and what is approved by the National Assembly. It is part of the ecosystem of a viable nation,” he said.

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    Explaining further, the NRS boss said government borrowing should not be misconstrued as a sign of fiscal weakness, but as a deliberate strategy to match long-term investments with future revenue flows.

    He illustrated with the example of road construction, saying “when you borrow to do roayd, those who use it in future will pay their fair share through taxes. You don’t need to spend your entire lifetime’s resources on infrastructure that will outlive you. That is why borrowing exists.”

    Adedeji also dismissed what he described as “container economists” who download unverified claims from social media and raise alarms about Nigeria’s debt profile.

    “As much as they fight me, sometimes you ask if they even understand the right questions, or are just downloading WhatsApp messages,” he quipped.

    On the controversial issue of Ways and Means advances from the Central Bank, Adedeji clarified that the Tinubu administration had taken decisive steps to end the practice of printing money without backing.

    “We have stopped Ways and Means. The whole loan has been collateralised and recognised in the federal government books as debt. We are paying both principal and interest, and that is why there is stability in the system and no pressure on the exchange rate,” he explained.

    Turning to recent fiscal reforms, Adedeji disclosed that only two components of the newly enacted tax laws—specifically the Tax Act and Tax Administration Act—will commence on January 1, 2026, in line with the federal fiscal year cycle.

    “Company Income Tax is assessed on a preceding year basis, meaning profits made this year are taxed next year. That is why it is logical and strategic to commence in January. The President is a planner, and that is why he insisted commencement should align with the fiscal year,” he said.

    However, he confirmed that administrative changes, including the renaming of the service from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS), took immediate effect once signed by President Tinubu.

    “As it stands today, we are Nigeria Revenue Service,” he affirmed.

    Presenting data, Adedeji highlighted the impact of the Tinubu administration’s fiscal reforms, noting that federal revenue collection surged to ₦3.64 trillion in September 2025, up 411 percent from ₦711 billion in May 2023.

    The jump was driven by non-oil receipts, which rose sharply to ₦1.06 trillion from ₦151 billion within two years. Oil revenue climbed to ₦644 billion, while Value Added Tax collections more than tripled to ₦723 billion.

    Adedeji credited these gains to reforms that streamlined taxes, reduced burdens on small businesses, rationalised incentives, and introduced measures such as excise rules, e-invoicing, and a forthcoming presumptive tax regime for hard-to-tax groups.

    He noted that ongoing reforms will harmonise subnational levies, reduce corporate tax rates, and expand the tax net as part of broader fiscal and constitutional reforms.

    “Our aim is not just to raise revenue, but to build a fair, efficient, and sustainable system that supports growth and gives confidence to investors,” Adedeji concluded.

  • New tax laws and Adedeji’s transformation of FIRS In 24 months

    New tax laws and Adedeji’s transformation of FIRS In 24 months

    • By Sikiru Akinola

    This week, precisely 18th September 2025, it will be 24 months since Zacch Adedeji Ph.D. assumed office as the Executive Chairman of the Federal Inland Revenue Service (FIRS). His appointment came at a critical time when Nigeria desperately needed revenue to fund projects that would bring smiles to the faces of Nigerians who invested so much hope in the President Bola Tinubu-led administration by voting him in as the head of state.

    In January 2024, at the first management retreat he presided over, four months after taking office, Adedeji revealed his plan to reform the operations of the revenue agency with a view to removing hurdles in the way of taxpayers and consequently improve tax revenue collection. The plan he revealed was simple: transform the agency’s values to make it taxpayer-centric. This followed a 107 percent performance over the set goal in 2023, where FIRS collected N12.37 trillion, exceeding its target of N11.56 trillion. The following year, FIRS exceeded its target of N19.4 trillion, realizing a total of N21.7 trillion. This year, it has a target of N25.2 trillion and with the figures showing on the dashboard so far, the agency is on track to surpass it and further break its own record.

    The factors responsible for these successes can be traced to the many initiatives Adedeji has introduced since he took over the affairs of the county’s revenue collection agency. Without being prompted and apparently to boost the morale of staff members of FIRS, Adedeji, in April 2024, after deliberating with his other team members at the management level, announced a 60 percent increment in salary paid to workers. This elicited wild jubilation from the entire workforce, including their union leaders who were surprised because of the unprecedented attitude Adedeji has shown to workers’ welfare since coming on board. All the other welfare packages are being attended to as and when due, a development that has led to enhanced productivity among the staff members.

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    To display its customer centricity and to enhance ease of doing business, the Service launched USSD code, *829#, aimed at improving taxpayers’ satisfaction. What this does basically is that it allows taxpayers to access various tax services directly from their mobile phones, without needing internet access. This was in addition to the various improvements done to the agency’s tax administration platform called the TaxProMax. The FIRS also recently introduced the Merchant-Buyer solution popularly known as e-invoicing. Within the first two weeks of its adoption last month, over 1,000 of the over 5,000 eligible large taxpayers – firms with annual turnover of N5 billion and above -have keyed in.

    To block leakages occasioned by illicit financial flows (IFFs) and bring more revenue into the coffers from multinational corporations, FIRS under Adedeji recently organized a two-day conference on the issue. This became imperative as Nigeria, according to available data, loses $18 billion annually to IFFs due to profit shifting and aggressive tax avoidance practices by some multinational corporations transacting businesses in Nigeria. How to strengthen compliance mechanisms, enhance beneficial ownership transparency, and leveraging technology to detect and deter tax evasion, trade mispricing, and other illicit outflows were discussed at the event put together by its Proceeds of Crime Management and Illicit Financial Flows Coordinating Directorate (POCM-IFF) in FIRS.

    Close to tackling the above is the National Single Window, NSW, project by the federal government. This initiative is domiciled in FIRS. It was observed that bureaucratic processes involved in import and export processes have led to long waiting time at the ports, which is a disincentive to Foreign Direct Investment. NSW was introduced to tackle this challenge. When it enters full operation by the second quarter of 2026, the ultimate goal of the initiative, which is to trade facilitation is expected to be met, while also optimizing revenue generation in addition to enhancing ease of doing business in the country

    Beyond his schedule at FIRS, some assignments naturally fell on his lap and one of such was his leadership of the sub-committee of the Federal Executive Council initiative on Domestic Sale of Crude Oil and Refined Products in Naira. To ensure supply stability and optimize the utilization of local refining capacity, his committee had been tasked with ensuring the sale of crude oil in naira for domestic refining remains in force. To the glory of God, Nigerians are now seeing the gain. No more queues at fuel stations and prices have almost stabilized, for the first time in many years. Petrol price is also gradually coming down.

    The most challenging of all the tasks Adedeji has carried out at FIRS is the tax reform. The four tax bills were subjected to all forms of drilling. He had to go out to defend the misconception associated with the bills. These new tax laws are a game-changer designed to usher in a new era of fairer taxation and economic revival for our country. For the first time in living memory, low‑income households, small businesses, and renters receive deliberate relief, made real through statutory thresholds and progressive rates, making the tax reforms one of the most pro-Nigerian initiatives ever. When the new laws go full throttle from next year, there will be immediate relief for majority of Nigerians who earn significantly low income. They do this through three means. The first means is that the new laws exempt individuals earning ₦800,000 or less per annum from personal income tax, effectively removing payroll tax from the vast majority of wage earners. By virtue of the new laws, Nigerians who earn below the minimum wage are almost certainly exempted from paying tax, thereby increasing the disposable income available to them to meet their daily needs.

    Adedeji, who is primarily concerned about businesses thriving, has always echoed the mantra of President Bola Ahmed Tinubu, which is that FIRS will only tax the fruits and not the seeds. In fact, when he first assumed office, he had to allay fears expressed by corporate organizations that the resolve of FIRS to increase the country’s tax-to-GDP ratio to 18 percent from 10.86 percent will lead to increase in taxes. According to him, such resolve would not necessarily lead to increase in taxes or introduction of new taxes as the President Tinubu-led administration is determined to create a wholesome environment for businesses to flourish. Another area where FIRS, under him, expressed love to Nigerians was the setting aside of a percentage of its target to support the Nigerian Education Loan Fund (NELFUND).

    If Adedeji’s leadership of FIRS in just two years can bring all these goodies, the next two years can only bring greater efficiency to the country’s tax administration and consequently immense benefits to businesses and the Federation. The morning, they say, shows the day. There is no way Adedeji would have been able to achieve these lofty things without the support from the President. In fact, President Tinubu made the journey to record increase in tax revenue collection easier by setting right the economic fundamentals, namely removing subsidy from petrol and collapsing the hitherto dual exchange rates. These policies have made more money available for the federal, state and local governments. They smile to the bank monthly due largely to increase in tax revenue collection which is responsible for about 70% of what is shared monthly.

    • Sikiru Akinola, Technical Assistant to the Executive Chairman of the Federal Inland Revenue Service, FIRS, writes from Abuja.
  • Zacch Adedeji’s push and Nigeria’s revenue future

    Zacch Adedeji’s push and Nigeria’s revenue future

    • By Yushau A. Shuaib

    Yunusa Abdullahi, consummate writer, analyst, and author of “Live Before You Leave” and “The Nigeria of My Dream,” often spoke glowingly of his boss at the National Sugar Development Council (NSDC). A former media aide to a governor, Yunusa later became the pioneer editor of PRNigeria before moving on to the Office of the National Security Adviser (ONSA) as spokesperson.

    He once invited me to a media session with Mr. Zacch Adedeji, who within one year as NSDC Executive Secretary, introduced democratic leadership, innovative reforms, and people-centered policies. He respected predecessors’ legacies, built on existing structures rather than dismantle; enhanced staff welfare, created a positive work environment, advanced sugar self-sufficiency, and ensured industry compliance with the Nigerian Sugar Master Plan and its Backward Integration Programme.

    So, when President Bola Ahmed Tinubu appointed Adedeji as Revenue Adviser in 2023, Yunusa penned an insight on the chartered accountant who graduated with First Class honours in Management and Accounting, earned a Master’s degree from Obafemi Awolowo University, and completed an executive programme at the Harvard Kennedy School. Achievements, especially as Oyo State’s Commissioner for Finance where he boosted internally generated revenue, positioned him as a technocrat well-suited to strengthen Nigeria’s fiscal discipline.

    Barely three months later, Adedeji appeared to have faced his toughest challenge when he was appointed Executive Chairman of the Federal Inland Revenue Service (FIRS). However, from the outset, he wasted no time in proposing bold and aggressive tax reforms that immediately sparked nationwide debate.

    Among them was the replacement of FIRS with a new National Revenue Service (NRS) designed to centralize all government revenue collection—including oil, customs, and port revenues. The goal was to streamline processes and eliminate leakages, but critics feared it would concentrate excessive power in one institution, rivaling the Central Bank of Nigeria (CBN) and the Nigerian National Petroleum Company (NNPC).

    Northern governors resisted the proposed Value Added Tax (VAT) formula that allocated revenues based on company headquarters rather than consumption. They argued that the policy would benefit Lagos and Rivers States disproportionately while hurting northern states with high consumption but few corporate head offices.

    Small and medium enterprises (SMEs), particularly in the South-East, raised concerns over compliance burdens despite the reforms raising the threshold for company income tax from ₦25 million to ₦50 million. Social media further fueled misinformation, prompting clarifications that the new regime would protect low-income earners and foster fairness.

    Although the National Economic Council (NEC) advised that the bills be withdrawn for wider consultations, President Tinubu opted to proceed with legislative review and public hearings to incorporate feedback. To many observers, Adedeji was aloof and combative. While criticisms mounted, he refrained from public quarrels, instead quietly engaging stakeholders behind the scenes, often through trusted intermediaries.

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    I witnessed some of these Chatham House-style sessions, including the one hosted by Taiwo Oyedele, the Chairperson of Nigeria’s Presidential Fiscal Policy and Tax Reforms Committee, where stakeholders’ fears were addressed. Adedeji emphasized that the reforms were not designed to stifle businesses but to simplify taxation, plug loopholes, and ensure equity. The strategy was plain but profound: build understanding first and legislate later.

    This approach contrasted sharply with previous reform attempts, where stakeholders were often kept in the dark until policies were rolled out. Adedeji chose the harder but wiser path—nationwide consultations. He interacted with business leaders, tax professionals, policymakers, the organised private sector, and adjusted policies accordingly.

    As Olayinka Akintunde, a former Economic Confidential editor, told me, proactive engagement engenders trust: “Adedeji demystified the tax reforms, showing that reform was about creating a fair, transparent, and efficient system, not imposing burdens.”

    Adedeji also recognised that taxation can not thrive without security. For businesses to operate and taxpayers to comply, stability is essential. This understanding informed his outreach to the military and security agencies. Meetings with the Chief of Defence Staff General Chris Musa and other security chiefs underscored the need for safe environments where businesses and taxable activities can flourish.

    Equally strategic was the collaboration with the Nigeria Customs Service (NCS) under Comptroller General Bashir Adewale Adeniyi. Since customs duties, levies, and trade operations are integral to revenue administration, harmonising FIRS and NCS functions became indispensable. Adedeji’s push for alignment was aimed at eliminating duplication, facilitating trade, and boosting efficiency at the borders.

    What sets Adedeji apart is his ability to promote cordial relations, visible in partnerships with policymakers and businesses, revenue authorities and enforcement agencies, the government and citizens. In an era of widespread distrust of government, he demonstrates that engagement is strength, not weakness, and that sustainable reform comes from consensus, not coercion.

    With the tax bills now signed into law by President Tinubu, Adedeji’s journey enters a new phase as the real test of reform lies not in its passage but in implementation. Tax policies, no matter how well designed, fail if they are not accepted and supported by stakeholders. Thus, the revenue chief’s dialogues and collaborations are commendable. Nigeria’s revenue future rests not only on bold policies but also on leaders who can build bridges and inspire collective ownership of reforms.

    By January 2026, it is expected that the outcomes of Zacch Adedeji’s leadership will begin to unfold—through wider acceptance of reforms, higher compliance rates, sustained institutional cooperation, and improved revenue generation. If his bridge-building strategy holds, even reluctant businesses will gradually embrace compliance.

  • Zacch Adedeji on a mission with people-centric reforms

    Zacch Adedeji on a mission with people-centric reforms

    The Federal Inland Revenue Service (FIRS) is becoming more than a government agency. It is not today that we have been saying this, and it will not stop today or anytime soon. It is now being recognised as a partner in national development, driven by reforms that place people at the center and deliver measurable results.

    Over the past months, the leadership of Dr. Zacch Adedeji, Executive Chairman, FIRS, has introduced a series of people-focused changes that have shown a tangible impact on our revenue system and the economy at large. 

    His work has been based on practical reforms in tax law, improved welfare for staff and citizens, the adoption of technology to streamline processes, stronger teamwork across departments, and a leadership style grounded in clarity, accountability, and measurable outcomes.

    Just this August, the agency launched an electronic invoicing system for companies with an annual turnover of five billion naira or more. It went live on the first day of the month, and by the second week, about a thousand companies had already joined. Organizations like MTN, Huawei, and IHS are on board. Others have until November 1 to comply. The process is firm, but the rollout has been managed carefully, giving companies enough time to adjust without disruption.

    The effects are already showing. Afri Invoice, a local Nigerian company that provides e-invoicing solutions, has created 150 new jobs in seven states to meet the demand. It may seem small, but it serves as proof that one effective policy can open the door to more jobs and economic growth.

    Not long after, on August 7, FIRS held its first Research Day. It was not an event for long talks but a day of action and openness. Three (3) main resources were made public. The first was the Tax Revenue Statistical Bulletin, containing more than fifty years of tax data from 1970 to 2022. The second was the official Research Policy, which sets out a framework for conducting transparent and high-quality studies. 

    The third was the latest volume of the FIRS Journal of Tax Studies, now available online. These materials are open to researchers, journalists, students, policymakers, and anyone who wants to understand our tax history and the direction we are headed.

    Step by step, these reforms show that when leadership is focused on people and guided by data, institutions can transform. The work being done at FIRS today is building not only better systems but also trust between the government and the people it serves.

    Let’s not forget that under the Tax Boss, tax education and public engagement have also taken a new shape. FIRS has stepped up its outreach to small and medium enterprises, offering guidance on compliance and breaking down processes that once felt complicated and far removed from the everyday business owner. 

    The agency has also strengthened partnerships with state revenue services, ensuring that both federal and state systems work together rather than compete.

    Capacity building for staff has been prioritised, with training programs designed to give them the skills and tools to meet modern tax administration demands. In addition, reforms in dispute resolution have made it faster and easier for taxpayers to settle issues without lengthy court battles, promoting a more cooperative relationship between the agency and the general public. Digital platforms have been improved, meaning that many taxpayers can now register, file, and pay from the comfort of their offices or homes.

    Sometimes, you stop and wonder how one person can have so much vision while truly keeping the needs of people in mind. Dr. Zacch understands difficult challenges but never loses sight of those who live them every day. His efforts are effective, making changes that touch many lives. 

    The progress seen today comes from thoughtful decisions and a commitment to serve others. In a country where many lead for themselves, he leads for the people. When you think about leadership that combines critical thinking with care, the answer is not far-fetched. It can only be him.

    Arabinrin Aderonke Atoyebi is the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service Contact@arabinrinaderonke.com

  • Fed Govt battles illicit financial flows

    Fed Govt battles illicit financial flows

    Federal Government has intensified the battle against illicit financial flows (IFFs), with Chair of Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, issuing a call to action.

    In a statement by Arabinrin Aderonke, Technical assistant on Broadcast Media to FIRS chair, Dr. Adedeji, queried why a Nigeria rich in resources continues to struggle with basic needs.

    He cited dilapidated public schools, under-equipped hospitals, and stalled infrastructure projects—despite the country’s oil wealth, tax revenue, and thriving businesses.

    “These persist,” he said, “not because Nigeria lacks money, but because of huge illicit financial flows bleeding the nation dry.”

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    Dr. Adedeji spoke at the National Conference on Illicit Financial Flows on July 22 in Abuja.

    He said tax avoidance schemes, trade mispricing, anonymous shell companies, outdated international agreements, and profit-shifting tactics allow businesses to move wealth offshore.

    According to him, these practices erode Nigeria’s tax base, delay critical development and weaken public services.

    The event brought together top stakeholders, including Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite; Irene Ovonji-Odida of United Nations High-Level Panel on Illicit Financial Flows; and officials from EFCC, ICPC, Customs, Central Bank, and Securities and Exchange Commission (SEC).

  • Zacch Adedeji: We all can build Nigeria through tax reform

    Zacch Adedeji: We all can build Nigeria through tax reform

    When Dr. Zacch Adedeji, Executive Chairman, Federal Inland Revenue Service (FIRS), mounted the podium at the Domestic Investors Summit on July 21, 2025, in Abuja, he spoke passionately and intelligently about the tax system, not with official speeches but with the kind of directness people have come to expect from him.

    He came to remind the country of something: tax reform is no longer sitting in a cabinet file. It is here to stay. He broke down the details and went further to explain what this means for Nigerians moving forward.

    His leadership and understanding of Nigeria’s tax challenges make him one of the rare voices Nigerians can trust with the agency. He did not come to occupy space and did not need to tell us that Nigeria’s tax system was overdue for a proper house cleaning. We have known for decades, it is evident.

    One of the smartest moves about the reform is how it focuses on taxing success rather than the struggle. The government will now tax the profits businesses make, not the investments they pour in. This means entrepreneurs can nurture their ideas and build their businesses without early tax pressure. It’s a system that supports growth and rewards hard work.

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    The new Nigeria Revenue Service stands as a symbol of unity and efficiency. It replaces the old Federal Inland Revenue Service and consolidates all tax collections under one roof, including federal, state, and local taxes. This single agency approach makes compliance simpler for taxpayers and strengthens our tax system.

    The introduction of the four percent National Development Levy replaces many smaller levies, making payments clearer and easier. Plus, businesses can now claim VAT credits on capital equipment, lowering the cost of setting up and expanding in Nigeria by nearly eight percent. This enhancement puts Nigeria in a stronger position to attract both local and international investors.

    Small and medium enterprises, which power our economy, also benefit from tax credits and incentives. Supporting these businesses means more jobs, more innovation, and a brighter future for our communities.

    The tax reform also includes a Joint Taxpayer Committee to resolve tax matters between different government levels. This innovation promises smoother operations and greater certainty for businesses, encouraging more investment and confidence in Nigeria’s economy.

    Dr. Zacch told the audience that the current administration is focused not on quick wins, but long-term prosperity. He added that, for the economy to grow, taxation must not be a burden but a partnership. He said it plainly: the government must earn the trust of taxpayers through transparency, fairness, and results. The days of taxing confusion and chaos are over.

    At the summit, he didn’t use theory to impress anyone. He made it clear that Nigerians are tired of words. He said the role of the taxman has changed. The job now is to empower growth, not frustrate it. He talked about the recent efforts to harmonise taxes, remove overlaps, and end the era where agencies ambush businesses with random levies. And he mentioned something that stuck with me: the goal is to “remove the fear and replace it with trust.”

    By the time he ended his remarks, it was no longer a policy talk. It had become a charge. He told everyone present that this reform is not about him or his agency. It is about a new culture. A culture where the government no longer hides behind complexity, and citizens are not punished for daring to build.

    And so, I will say this: whether you are a worker, a trader, an investor, or just someone trying to make life work in Nigeria, don’t look away. This tax reform is not just about documents and bills. It is about the kind of country we are building. Everyone must play their part. The government must not go back to old habits. But we, the people, must also not go back to distrust. If we stay the course, we all can build Nigeria through tax reform.

    The Tax Boss has taken one of the most dreaded parts of governance – taxation- and turned it into a space where Nigerians can see sense, structure, and purpose. He is not performing leadership; he is doing the work. He stands out for speaking directly, moving quickly, and backing every policy with action. Whether it is harmonising taxes, cleaning up collection, or making the system easier for everyday Nigerians, Dr. Zacch is not just reacting to problems; he is reimagining what the tax system can be.

    –          Arabinrin Aderonke is the technical assistant on broadcast media to the executive chairman of the Federal Inland Revenue Service

  • FIRS opens talks with Netherlands to align Tax Treaty with new reforms

    FIRS opens talks with Netherlands to align Tax Treaty with new reforms

    The Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, has hosted a delegation led by His Excellency Bengt van Loosdrecht, Ambassador of the Kingdom of the Netherlands to Nigeria, for the opening ceremony of the renegotiation of the Double Taxation Agreement between Nigeria and the Netherlands. The event took place at the Revenue House in Abuja and marked the beginning of a new phase in Nigeria’s international tax relations.

    Following the signing of the Tax Reform Bill into law by President Bola Tinubu on June 26, 2025, interest in Nigeria’s new tax structure has already started to grow. In less than a week, both local and international stakeholders have begun to respond.

    Among them is the Kingdom of the Netherlands, one of Nigeria’s long-standing trade and investment partners, which is now the first foreign government to begin formal talks with Nigeria to renegotiate its existing tax agreement. The aim is to bring the agreement in line with the new reforms and remove outdated terms, especially those relating to double taxation which no longer reflects the current realities.

    Dr. Zacch welcomed the delegation on behalf of the President, Government, and people of Nigeria.

    He described the visit as timely, especially considering recent changes in both domestic and global tax systems.

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    He said: “Recent developments in the domestic and global tax landscape have made the review of the existing agreement unavoidable. Particularly the tax reforms being carried out by our government, global measures against Base Erosion and Profit Shifting (BEPS), and other evolving international tax standards will render extant agreement out-of-date.”

    He further emphasized that the discussions align with the policy direction of the current administration and reflect Nigeria’s commitment to a transparent and fair process;

    “This renegotiation meets with the policy objectives of the ongoing fiscal and tax reforms initiated by the administration of President Bola Tinubu. We are committed to broadening the domestic tax base, strengthening tax administration, and ensuring that our tax system supports inclusive economic growth,” he said.

    In his remarks, the Netherlands envoy, expressed appreciation for the warm welcome and highlighted the spirit of cooperation guiding the negotiations.

    He noted: “The fact that we meet here today is an indication of the goodwill and the good faith in which we want to meet with each other. And I can assure you that my colleagues from the Netherlands will act in good faith. That is always an important basis for good negotiations.”

    Reflecting on the nature of treaty talks, he expressed optimism about the process and the teams involved;

     “Ultimately, a treaty is about finding common ground and building upon that common ground. I know both of our sides have very competent, professional teams, and I am confident we will have a very fruitful week.”

    The tax reform bills recently signed into law include the Nigeria Tax Act, the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, and the Joint Tax Board (Establishment) Act. These Acts restructure how taxes are managed in Nigeria.

    The next six months will be used to harmonize tax data, implement the newly signed laws, and put systems in place ahead of the January 1, 2026 take-off of the Nigeria Revenue Service (NRS). This transition period will also cover the review of existing tax agreements to ensure they reflect the provisions of the new reforms.