Government-owned enterprises, states urged to improve tax remittance transparency

The Nigeria Revenue Service (NRS) has urged government-owned enterprises (GOEs), state governments and public institutions across the country to strengthen tax compliance and improve remittance transparency under the new tax regime as part of efforts to boost national revenue generation and fiscal sustainability.

The call was made during a National Workshop on Strengthening Tax Compliance Under the New Tax Regime, organised by the Government Business Group of the Government and Large Taxpayers’ Directorate in Abuja.

Speaking at the event, Madam Amina Ado, Executive Director of the Government and Large Taxpayer Directorate, said taxation remains the foundation of the social contract between government and citizens, stressing that efficient tax collection is critical to funding infrastructure, healthcare, security and other essential public services.

According to her, the workshop was designed to deepen collaboration between federal and sub-national governments, while also addressing compliance gaps identified in the course of NRS monitoring and audit activities.

“This Workshop offers a good platform for critical stakeholders at federal and sub-national levels to engage, share insights and forge stronger alliances in a bid to optimize revenue collection across our nation. As we navigate through the changes of our evolving tax landscape, the importance of the government ministries department and agencies (MDAs) and government owned enterprises (GOEs) are paramount to our national success,”

She noted that although several states and institutions have demonstrated commendable compliance practices, significant leakages still exist, particularly in the prompt deduction and remittance of Value Added Tax (VAT) and Withholding Tax.

Ado said the imbalance in compliance among states and government entities undermines fiscal fairness and weakens the nation’s revenue mobilisation efforts.

“This workshop comes at a crucial period when the Nigeria Revenue Service has the responsibility of raising about N40 trillion in tax revenue for the Federation. Achieving this target requires sincerity, transparency and stronger institutional cooperation from all stakeholders,” she said.

She explained that the new tax reforms provide stronger legal backing for the enforcement of deducted but unremitted taxes, while also creating clearer operational frameworks for ministries, departments and agencies (MDAs) and GOEs acting as statutory tax collection agents.

The NRS director added that the agency is prioritising a shift from enforcement-driven engagements to a more collaborative and technology-driven compliance system aimed at simplifying tax remittance processes and reducing transition bottlenecks.

In his keynote address, Zacch Adedeji, the Executive Chairman of NRS, described the workshop as a strategic intervention aimed at strengthening tax administration and fostering closer partnerships with state actors.

Adedeji said the NRS remains committed to sustainably financing the Federation Account Allocation Committee (FAAC), which serves as the financial backbone for development across the three tiers of government.

He stated that the workshop would help improve awareness among federal, state and local government institutions on their statutory obligations regarding tax deduction and remittance under the new tax laws.

According to him, the initiative is also expected to bridge communication gaps, improve transparency and encourage timely remittance of taxes through a voluntary compliance framework.

“The stakes are higher this year as the NRS is faced with the Herculean task of raising about N40 trillion in tax revenue for the Federation. This goal requires deep collaboration with state actors and institutional stakeholders,” he said.

Adedeji warned that persistent non-compliance among some states and GOEs places unfair pressure on compliant institutions and weakens public confidence in the tax system.

He added that the Service would, beginning from 2026, introduce a recognition initiative to reward the most tax-compliant states across different performance indicators.

The NRS boss expressed confidence that the workshop would produce actionable solutions capable of strengthening administrative efficiency, improving tax transparency and supporting Nigeria’s broader economic development objectives.