The Federal Inland Revenue Service (FIRS) has emphasised the urgent need to expand the taxpayer base rather than introduce new taxes to bolster Nigeria’s revenue generation.
Zacch Adedeji, chairman of FIRS, speaking at the second edition of the NPO Reports, Annual National Dialogue held on Tuesday in Abuja, emphasised the importance of engaging gainful employment and entrepreneurship to grow the tax base.
He said that the current administration is committed to simplifying tax processes, promoting fair tax administration, and ensuring equitable contributions across sectors.
“We don’t need new taxes, we need new taxpayers, taxpayers who are gainfully employed, who are involved in some kind of business, to be able to pay the taxes. So we do need new taxes, but this administration knows also that we need new taxpayers. And we’re doing all in our power to ensure that happens.
“The motto that says it, we are for simplifying tax. And in that respect, we hope to maximize revenue. I think there’s a human face to tax revenue collection by this administration. And we’re doing all in our power to ensure that people pay their taxes in a very complete and fair manner. And that’s our mission. We’re committed to fair tax administration,” he stated
The FIRS had, in 2021, disclosed that Nigeria with over 200 million population had only 41 million taxpayers. In spite of the 41 million taxpayers, Nigeria still earned lower than what its counterparts across Africa generate from Personal Income Taxes (PIT).
Adedeji, who was represented by Umar Idris, director of special duties & intergovernmental affairs, FIRS, outlined key strategies aimed at fostering economic growth and enhancing national infrastructure.
Adedeji explained that the revenue collected by FIRS is distributed among the three tiers of government and is critical for funding infrastructure projects essential for national development.
He highlighted the need for effective revenue generation strategies amidst economic uncertainties, pointing to the importance of reducing complexity in tax processes, enhancing compliance, and minimising tax evasion through transparent and efficient systems.
“And the objective is to optimize revenue for national development. That’s to allow new tax processes that also reduces complexity, boosts compliance, enhances tax collection efficiency, and ensures equitable contributions for all sectors. Compliance is something that we need to do,” he said
On exploring revenue diversification, the FIRS chairman underscored the potential of diversifying revenue streams by leveraging sectors such as tourism, agriculture and technology. According to him, targeted investments in agricultural infrastructure and tourism can unlock new income streams.
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