The bold vision and strategies behind FIRS’ unprecedented growth and future ambitions

It’s not all gloomy in Nigeria, despite current challenges. The Federal Inland Revenue Service (FIRS) not only surpassed its revenue target in 2024 by collecting N21.6 trillion, but the agency is targeting N25.2 trillion for 2025.

At the 2025 strategic management retreat of FIRS on the theme of “Building a High-Performance FIRS through Collaboration and Innovation’” in Abuja, its chairman, Zacch Adedeji, made the cheering disclosure. “The FIRS closed the chapter of 2024 with an achievement that will forever be recorded in the history of the Federal Inland Revenue Service with the record-breaking generation of N21.6 trillion in revenue, surpassing our target of N19.4 trillion, which was the result of resilience, professionalism, and dedication, coupled with visionary leadership and a strategic focus on the pillars of people, technology, and processes.

Zacch Adelabu Adedeji was appointed chairman of the agency by President Bola Tinubu in an acting capacity in 2023. He has a clear understanding of what an effective government internal revenue organisation is all about. “Our work enables the delivery of critical infrastructure, social services, and opportunities that transform lives,” says Adedeji, who was Commissioner for Finance in Oyo State from June 2011 to May 2015. “We are not just staff members; we are agents of the nation, entrusted with a responsibility that goes far beyond the walls of this organisation.”

Adedeji, from Iwo-Ate, Ogbomosho, Oyo State, was born on January 8, 1978. He was nurtured by a family deeply established in the cocoa trade, which enabled him to develop an interest in commerce and trade before enrolling for a National Diploma in Accountancy at the Federal Polytechnic, Ede, Osun State. He then pursued a Bachelor of Science degree in Management & Accounting at Obafemi Awolowo University (OAU), Ile-Ife, Osun State, where he graduated with a First-Class honour. He went on to obtain a Master of Science degree in Accounting from OAU. He later attended the Harvard Kennedy School of Government in the United States, where he completed an Executive Course in Economic Development. In 2023, Adedeji earned a Doctor of Philosophy in Accounting from Obafemi Awolowo University, Ile-Ife.

His career began with a managerial position at the multinational corporation Procter and Gamble (P&G). He held other roles at P&G, including Corporate Finance Manager (West Africa) and Finance Leader for SAP Implementation Project. It was the late Abiola Ajimobi, as governor of Oyo State, who appointed him Commissioner for Finance, Oyo State, from 2011 to 2015. During his tenure, he implemented significant financial reforms, including the establishment of the Treasury Single Account (TSA), which streamlined government revenues and expenditures.

Adedeji was appointed as the Executive Secretary of the National Sugar Development Council (NSDC) during the administration of President Muhammadu Buhari. Adedeji established the Nigeria Sugar Institute and extended the Sugar Backward Integration Program. A co-founder of RTR, a financial consulting firm that specialises in providing comprehensive financial advisory and policy development services to public administrators and private institutions across West Africa, he was already familiar with the terrain of tax administration and FIRS’ mandate for assessing, collecting, and accounting for taxes accruing to the Federal Government of Nigeria.

Indeed, he had also served as the special adviser to the president on revenue. Despite his familiarity with the tax turf, Adedeji is expected to encounter challenges and proffer effective solutions. An expert in taxation has underscored the need for FIRS to get its personnel to understand taxpayers’ special circumstances and situations.

In one year of being in the saddle, he is able to report an unprecedented achievement at a time when positive achievements in Nigeria have never been in shorter supply. Yet, Adedeji is committed to adopting global best practices from sundry directions. The United States, Britain, and South Africa are some of the countries that provide perspectives and examples that FIRS, nay Nigeria, can borrow from.

In the US, the Internal Revenue Service (IRS) is the revenue service for the United States federal government, which is responsible for collecting U.S. federal taxes and administering the Internal Revenue Code, the main body of the federal statutory tax law. It is an agency of the Department of the Treasury and is led by the commissioner of Internal Revenue, who is appointed to a five-year term by the President of the United States. The duties of the IRS include providing tax assistance to taxpayers, pursuing and resolving instances of erroneous or fraudulent tax filings, and overseeing various benefits programs, including the Affordable Care Act.

To ensure that taxpayers’ circumstances are considered in tax administration, there is an Office of the Taxpayer Advocate, also called the Taxpayer Advocate Service, an independent office within the IRS responsible for assisting taxpayers in resolving their problems with the IRS and identifying systemic problems that exist within the IRS. Its Criminal Investigation (IRS-CI) is responsible for investigating potential criminal violations of the U.S. Internal Revenue Code and related financial crimes, such as money laundering, currency violations, tax-related identity theft fraud, and terrorist financing that adversely affect tax administration.

In the United Kingdom, His Majesty’s Revenue Commission (HMRC) is the tax, payments, and customs authority, whose purpose is to collect the money that pays for the UK’s public services and helps families and individuals with targeted financial support. It does this by being impartial and increasingly effective and efficient in our administration. It helps the honest majority to get their tax right and make it hard for the dishonest minority to cheat the system.

Similarly, the South African Revenue Service (SARS) is the nation’s tax-collecting authority. Established in terms of the South African Revenue Service Act 34 of 1997 as an autonomous agency, it is responsible for administering the South African tax system and customs service.

Its strategic intent is to give effect to our mandate; our strategic intent is to develop and administer a tax and customs system of voluntary compliance and, where appropriate, enforce it responsibly and decisively. Its vision is to build a smart, modern SARS with unquestionable integrity that is trusted and admired.

What have been his secrets? What are the new ideas he’s bringing onboard? Where should he explore inspirations?

In January 2024, Adedeji commenced the process for a comprehensive restructuring of the service that included an administrative overhaul and a paradigm shift in the mindset of its personnel to the adoption of a customer-centric approach. Gradually, FIRS has transformed into a one-stop shop where taxpayers could resolve issues and fulfil tax obligations seamlessly. This has significantly enhanced service delivery and fostered a taxpayer-friendly environment. This has increased compliance rates.

The second most salutary point of emphasis that Adedeji has orchestrated is the leveraging of technology in the organisation’s operations. This included the upgrade of the TaxPro Max platform, whose self-registration module has simplified the taxpayer onboarding process, encouraging more citizens and businesses to fulfil their tax responsibilities. Furthermore, the introduction of a USSD code has revolutionised tax payments, making it easier for taxpayers to access information and make enquiries directly from their mobile phones. These innovations have enhanced accessibility, transparency, and efficiency in tax administration.

Collaboration with other government agencies has been instrumental in driving seamless tax collection processes. By working closely with stakeholders, FIRS has optimised its operations, ensuring that tax collection is streamlined and devoid of bureaucratic bottlenecks.

On the informal sector, which constitutes a large part of the economy, he noted the unique challenges posed by the initiative, noting that “many small and micro businesses operated outside the formal tax system” that need to be engaged. He stressed the need for the government to “explore simplified tax regimes and registration incentives.”

Adedeji recognised the fact that a motivated workforce is essential to achieving organisational goals. FIRS exposed its personnel to regular training and retraining in 2024 to sharpen their skills and keep pace with evolving tax administration practices. Quarterly targets were not only met but also celebrated, with staff receiving commendations and accolades for their contributions. This culture of recognition and continuous improvement has cultivated a highly motivated workforce dedicated to achieving the service’s objectives.

Adedeji is hoping that the tax reform bills currently before the National Assembly will receive decisive attention in 2025 against the backdrop of the monumental achievements of the organisation in 2024. If everything goes according to plan, then FIRS is poised for even greater achievements on the strength of the provisions designed to enhance efficiency, stimulate economic growth, and reduce the tax burden on citizens.

Bashir I. Hassan is the general manager for Abuja and the North of BusinessDay newspaper.