Emerging Tax Matters, FIRS Chairman Zacch Adedeji Highlights Crucial Tax Reforms at Stakeholders’ Engagement

By Innocent Eneta,

In a keynote address delivered by Mrs. Oti Olaniyi, Acting Director of the Medium Taxpayers Department (South), on behalf of Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), the audience was briefed on the critical topic of “Emerging Tax Matters” during a private sector stakeholders’ engagement hosted by the Lagos Chamber of Commerce and Industry (LCCI) on 18th September 2024. The event, held at Commerce House, Lagos, brought together key industry players to discuss the evolving landscape of taxation in Nigeria.

Mrs. Olaniyi, representing Dr. Adedeji, emphasised the pivotal role taxpayers play in driving Nigeria’s economic development. “It is essential to recognise the vital role that taxpayers play in a country’s economic development. They are instrumental in financing the infrastructure projects that are critical to our progress at all levels of government,” she stated.

She outlined two major developments within the FIRS: the organisational restructuring aimed at creating a more customer-focused and agile tax system and the introduction of new tax reforms designed to simplify processes and broaden the tax base. On the restructuring, Mrs. Olaniyi noted, “The reorganisation represents a strategic shift towards attaining a customer-centric organisational structure aiming to systematically address challenges and ensure pragmatic reforms.”

The FIRS, under Dr. Adedeji’s leadership, has decentralised key functions, creating three operational groups—Small/Emerging Taxpayers, Medium Taxpayers, and Large Taxpayers—to better cater to the diverse needs of taxpayers. “The FIRS is committed to a customer-centric approach aimed at enhancing voluntary compliance and boosting revenue generation,” she added.

One of the key reforms highlighted was the introduction of the *TaxPro Max* platform, a digital tool designed to streamline tax administration by allowing taxpayers to file returns and access various services online. Mrs. Olaniyi pointed out, “Our suite of e-services—including e-filing, e-reporting, e-registration, and e-TCC—demonstrates our commitment to facilitating easy and efficient tax management.”

In addition to leveraging technology, public education on tax matters has become a priority for FIRS. “Taxpayer education campaigns help citizens understand their tax obligations and the benefits of tax revenue,” Mrs. Olaniyi remarked, noting initiatives such as Tax Thursdays and school sensitisation exercises.

Addressing the challenges posed by the informal sector, she explained that simplified tax regimes and incentives are being explored to encourage compliance. Furthermore, recent Finance Acts, including VAT provisions for digital services, were designed to adapt to the modern economy. “This is a crucial step in ensuring that global tech companies contribute fairly to our economy,” she noted.

Mrs. Olaniyi also discussed the introduction of the FIRS e-Invoice, a digital solution aimed at enhancing transparency in business transactions, as part of the agency’s Digital Transformation Strategy.

In her closing remarks, she reiterated the importance of ongoing reforms in modernising Nigeria’s tax system, stating, “By embracing reform, leveraging technology, and ensuring transparency, we can develop a tax system that supports sustainable growth and equitable development.”

The keynote speech concluded with a call for collaboration between the public and private sectors in building a more resilient economy. “Our collective efforts will pave the way for a more prosperous and resilient Nigeria,” she affirmed.

The event underscored the importance of tax reforms in fostering economic growth and ensuring that Nigeria’s tax system remains fit for purpose in a rapidly changing global economy.