FIRS shifts to tech-driven tax compliance, moves away from punitive audits

23 Jun 2025

By Matthew Denis

The Federal Inland Revenue Service (FIRS) has unveiled a fresh approach to tax administration, focusing on voluntary compliance and the integration of modern technology to foster transparency, efficiency, and predictability within Nigeria’s tax ecosystem.

In a statement issued by Collins Omokaro, Special Adviser on Communications and Advocacy to the Executive Chairman of FIRS, the agency confirmed that it is moving away from an audit-centric enforcement model towards a more proactive system that encourages compliance by default, rather than through coercion.

“While audits remain an essential mechanism for detecting irregularities and ensuring accountability, they are inherently retrospective, they tell us what went wrong,” Omokaro explained. “What we now require is a forward-looking system that prevents errors before they happen.”

Under the leadership of Executive Chairman Zacch Adedeji, FIRS is reshaping its operational priorities to focus on strategic interventions, replacing punitive audits with digital tools and standardised processes that nudge taxpayers towards full compliance.

Central to the agency’s revamped strategy is the deployment of technology to deliver predictive and preventive assurance. These innovations are intended to identify tax risks early, enhance operational efficiency, and provide real-time support for both taxpayers and FIRS personnel.

“Technology is shifting our posture from fault-finding to foresight,” Omokaro said. “The objective is not merely to enforce but to empower. We are creating a system where compliance is seamless, intuitive, and the obvious choice.”