…Tasks Govt Tiers On Improved Tax Compliance
The Nigeria Revenue Service (NRS) has a N40 trillion tax revenue target for the 2026 fiscal year in furtherance of its operational drives to boost the federation non-oil tax collections and bridge the deficit gap in the year’s budget.
The Executive Chairman of the revenue agency, Dr. Zacch Adedeji, gave this hint on Tuesday during a national workshop on strengthening tax compliance under the new tax regime and collaborating with sub-nationals for enhanced revenue collection held in Abuja.
Represented at the forum by the Executive Director of Finance and Corporate Services, Mohammed Lawal, the NRS’ chairman canvassed the need for stronger collaboration among all tiers of government to improve tax compliance and revenue collection nationwide.
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According to him, achieving the target requires intensive capacity building, improved transparency, and strong partnerships among federal, state, and local government institutions to address the existing tax compliance challenges in the country.
Adedeji, who expressed concern over tax compliance imbalances among states and government-owned enterprises and described the trend as harmful to institutional fairness, announced plans by the nRS’ management to reward the most tax-compliant states effective from the end of 2026.
He expressed optimism that the workshop would improve awareness of statutory obligations on tax deductions and remittances among government agencies and enterprises and sensitise stakeholders on the provisions of the new tax laws to reduce transition challenges and bridge compliance gaps identified during monitoring and audit activities.
The tax administrator, who commended the present administration for introducing reforms that promote fairness, inclusiveness, and sustainability in Nigeria’s tax system, maintained that the goal of the service is to promote voluntary compliance instead of relying solely on enforcement measures.
In his keynote address at the event, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, explained that tax reforms remained crucial in Nigeria’s economic recovery and fiscal sustainability.
Oyedele, who was represented by his Chief of Staff, Mr. Tolu Adegbie, said that currently the country was balancing major reforms, including the Naira flotation, fuel subsidy removal and inflation control, alongside growing socio-economic challenges.
According to him, the new tax regime is part of broader structural reforms targeting stable, predictable, and equitable revenue generation to fund roads, healthcare, education, and national security.
While assuring that the reforms will expand the tax net without increasing the tax burden on citizens, the minister said that the NRS had been fully mandated to coordinate federation tax administration and ensure prompt remittance of withheld taxes.
Oyedele further clarified: “Technology adoption will help to block revenue leakages and improve voluntary tax compliance nationwide.
“Fiscal federalism can only succeed through shared commitment, harmonised processes, information sharing, and mutual accountability among all tiers of government”, the minister added.
Speaking during the workshop opening session, the Accountant-General of the Federation (AGF), Mr Shamseldeen Ogunjimi, said efficient domestic resource mobilisation remained critical to achieving sustainable development goals and reducing dependence on volatile revenue sources.
He explained: “The revenue administration can no longer operate in silos, particularly in areas of data management, taxpayer education, and compliance monitoring.
“Successful implementation of tax reforms depends heavily on stronger collaboration between the Federal Government and sub-national entities. Technology and innovation are central to these ongoing reforms.
“Digitalisation remains indispensable in improving efficiency and blocking opportunities for revenue leakages. We must continue to invest in integrated systems, taxpayer databases, and modern compliance tools”, Ogunjimi added.
The AGF stressed that tax compliance remained a shared civic responsibility, noting that citizens are more likely to comply voluntarily when governments demonstrate transparency, accountability, and utilization of tax for visible developmental projects.
