…As Revenue Service, OAGF Rally To Tackle Fiscal System Lapses
The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zach Adedeji, has identified low tax remittances by Ministries, Department and Agencies (MDAs) as among the major factors hampering its initiatives to geometrically improve revenue accruals to the Federation Accounts.
The tax administrator, who made this remark during a stakeholders’ engagement organized by the FIRS and the Office of the Accountant General of the Federation (OAGF) with the theme “Enhancing Tax Compliance Through Collaboration” in Abuja, lamented that despite technological innovations, including the deployment of platforms like GIFMIS and TaxPro MAX, and other fiscal measures, Nigeria’s tax administration is still grappling with persistent challenges.
Specifically, Adedeji lamented the continued lapses in withholding tax (WHT) deductions, VAT remittances, and stamp duty administration across Ministries, Departments, and Agencies (MDAs), noting that these gaps are largely due to technical limitations and a general lack of understanding of tax compliance requirements, resulting in substantial revenue losses and recurring audit issues in the fiscal system.
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According to him, the FIRS management is deeply aware that effective tax administration does not operate in isolation but the result of deliberate cooperation, mutual understanding, and well-coordinated systems among critical institutions of government.
He highlighted the key role of the OAGF in improving tax compliance, accountability, and Nigeria’s overall revenue performance.
The FIRS Chairman further clarified: “Despite the technological advances we’ve made, particularly with GIFMIS and our own TaxPro MAX platform, we continue to observe lapses in withholding tax deductions, VAT remittances, and stamp duty administration from the MDA space. These gaps, many of which are due to technical limitations and a knowledge deficit, result in significant revenue losses and recurrent audit issues. This workshop is not just an opportunity to share knowledge, but a strategic turning point to co-design solutions that will close these gaps and build a smarter, more efficient, and technology-driven tax compliance culture in Nigeria.
“When government institutions are tax-compliant, the message it sends to the private sector and citizens is powerful: that no one is above the law, and that transparency begins at home. Our credibility as public institutions is tested first by our own adherence to tax regulations. If we must grow revenue to meet our national development priorities, then we must begin by ensuring that public sector actors play by the rules—and help others do the same,” he added.
Speaking at the forum, the Accountant General of the Federation (AGF), Mr. Shamsudeen Babatunde Ogunjimi, harped on the importance of collaboration between FIRS and his Office in tackling the challenges in the fiscal system.
Described taxation as the lifeblood of any economy and that improving compliance is not just a fiscal goal but a national imperative, the AGF said: “One of the key objectives of the Renewed Hope Agenda of Mr. President is to diversify revenue sources and reduce reliance on volatile oil revenues. To achieve this, collaboration between revenue-generating agencies and other stakeholders becomes indispensable.”
Ogunjimi maintained that the stakeholder engagement availed the FIRS and the OAGF a unique opportunity to align strategies, tackle compliance challenges, and leverage technology to enhance transparency and accountability.
He clarified: “By leveraging technology, strengthening accountability, and promoting transparency and probity, we can significantly enhance compliance and boost government revenue for sustainable development. This engagement also presents an opportunity to contribute to Mr. President’s ambition of achieving a $1 trillion economy by 2030.”
