The Federal Inland Revenue Service (FIRS) and the Office of the Accountant-General of the Federation (OAGF) are exploring a unified strategy to enforce stricter tax compliance across Ministries, Departments, and Agencies (MDAs).

The move which aims to overhaul the country?s public sector tax compliance systems, in a push to close costly remittance gaps and build a more transparent fiscal framework, comes as part of a broader effort to enhance revenue generation, boost transparency, and align with President Bola Tinubu?s ambition to grow Nigeria?s economy to $1 trillion by 2030.

At the opening of a two-day stakeholders? engagement in Abuja, Zacch Adedeji, FIRS Executive Chairman said the collaboration marks a ?strategic turning point? in the nation?s revenue administration, stressing the need for government institutions to lead by example in tax compliance.

?When government institutions are tax-compliant, the message it sends to the private sector and to citizens is powerful: that no one is above the law, and that transparency begins at home,? Adedeji said at the forum, themed ?Enhancing Tax Compliance through Collaboration?.

Despite the introduction of digital tools like the Government Integrated Financial Management Information System (GIFMIS) and FIRS?s own TaxPro MAX platform, Adedeji acknowledged persistent issues with withholding tax deductions, VAT remittances, and stamp duty administration within Ministries, Departments, and Agencies (MDAs).

These lapses, he warned, are ?due to technical limitations and a knowledge deficit on tax compliance requirements,? leading to revenue leakages and repeat audit failures.

?This engagement is not another conference,? he emphasised. ?It is a joint mission. It is a collaborative task to standardise systems, deepen understanding, address operational inefficiencies, and align our collective responsibilities within the public finance management ecosystem.?

The meeting included technical workshops and strategy sessions that focused on tax remittance bottlenecks in the public sector. Key agenda items revolved around FIRS?s 2025 Strategic Roadmap, updates to VAT and withholding tax regimes, and opportunities to integrate real-time tax tracking and reconciliation through platforms like TaxPro MAX.

Adedeji outlined four key commitments the collaboration must deliver, including strengthening ties between FIRS and OAGF, establishing clear reporting channels for lapses, embedding tax compliance into public finance training, and ensuring feedback loops for continuous system improvement.

He noted that the success of the engagement would depend on the actions thereafter.

Speaking at the same event, Shamsudeen Ogunjimi, Accountant General of the Federation (AGF) emphasised that collaboration between the OAGF and FIRS?now officially renamed the Nigeria Revenue Service (NRS) under the 2025 Establishment Act?is essential for real fiscal reform.

According to him, ?Taxation remains the lifeblood of any economy, and for us in Nigeria, improving tax compliance is not just a fiscal priority but a national imperative.?

The AGF underscored the importance of leveraging technology, strengthening accountability, and promoting transparency to expand the tax base and reduce dependency on oil revenues.

?This engagement provides a unique platform to foster synergy between the FIRS and OAGF, align our strategies, and address challenges hindering optimal tax collection and remittances,? he said.

The AGF praised the FIRS for its strides in digitising tax processes and expanding the national tax net, urging all stakeholders present to ?share ideas, proffer solutions, and forge actionable resolutions? to improve revenue outcomes.

?Together, we can build a robust tax system that supports Nigeria?s economic growth and delivers on the promises of good governance,? he noted.

In a presentation at the engagement, Matthew Sanni, an FIRS Director also emphasised that true collaboration requires unified systems, shared data, and collective purpose.

Citing Nigeria?s development goals, he noted that raising the tax-to-GDP ratio from 10.8% to over 18% is essential to funding the N54.9 trillion 2025 budget.

Sanni advocated for full digital integration between FIRS and OAGF using platforms like TaxPro Max and GIFMIS, warning that without it, Nigeria?s tax system would remain inefficient.

He called tax evasion a ?monster? and urged both agencies to institutionalise cooperation to close revenue gaps and improve national economic outcomes. (BusinessDay)

Update news