FIRS, OAGF move to enforce tax compliance across MDAs
…Drive fiscal transparency
The Federal Inland Revenue Service (FIRS) and the Office of the Accountant-General of the Federation (OAGF) have announced a coordinated effort to tighten tax compliance across Ministries, Departments, and Agencies (MDAs), in a bid to overhaul Nigeria’s public sector revenue system and improve fiscal transparency.
The joint initiative, unveiled during a two-day stakeholders’ engagement in Abuja, forms part of a broader strategy to raise government revenue, curb leakages, and support President Bola Tinubu’s vision of expanding Nigeria’s economy to $1 trillion by 2030.
FIRS Executive Chairman, Zacch Adedeji, described the collaboration as a “strategic turning point” in the country’s revenue administration. He called for public institutions to set a strong example for tax compliance, asserting that, “When government institutions are tax-compliant, the message it sends to the private sector and citizens is powerful: no one is above the law, and transparency begins at home.”
Speaking at the event themed “Enhancing Tax Compliance through Collaboration”, Adedeji acknowledged that, despite the deployment of digital tools such as the Government Integrated Financial Management Information System (GIFMIS) and FIRS’s TaxPro MAX platform, there remain persistent challenges in withholding tax deductions, VAT remittances, and stamp duty administration within MDAs.
“These challenges are largely due to technical limitations and a knowledge deficit regarding tax compliance requirements,” he said, warning that such lapses continue to undermine revenue generation and cause recurring audit failures.
He made clear that the gathering was not a routine conference but a joint operational initiative intended to standardise procedures, enhance institutional understanding, resolve bottlenecks, and define responsibilities within Nigeria’s public finance system.
The event featured technical sessions focusing on the FIRS 2025 Strategic Roadmap, reforms to VAT and withholding tax regimes, and new opportunities for real-time reconciliation through digital platforms.
Adedeji laid out four specific outcomes expected from the collaboration: closer coordination between FIRS and OAGF; structured channels for reporting tax-related infractions; embedding tax compliance in public finance training; and a feedback mechanism to continuously improve systems and practices.
Shamsudeen Ogunjimi, the Accountant-General of the Federation, echoed these sentiments. He remarked that the partnership between OAGF and FIRS—now officially renamed the Nigeria Revenue Service (NRS) under the 2025 Establishment Act—is essential to achieving sustainable fiscal reform.
“Taxation is the lifeblood of any economy, and in Nigeria, enhancing tax compliance is not just a fiscal objective, it is a national necessity,” he said.
He underscored the need to harness technology, reinforce accountability, and improve transparency in order to broaden the tax base and reduce reliance on oil revenue. Ogunjimi praised the FIRS for its digitisation efforts and called on stakeholders to “exchange ideas, recommend solutions, and develop tangible action points” to strengthen revenue performance.
“Together, we can establish a resilient tax system that underpins Nigeria’s economic advancement and upholds the values of responsible governance,” he added.
Also speaking, Matthew Sanni, a Director at FIRS, stressed that effective collaboration demands integrated systems, shared data, and unified objectives.
He highlighted the need to raise Nigeria’s tax-to-GDP ratio from 10.8 per cent to over 18 per cent in order to adequately finance the proposed ₦54.9 trillion 2025 national budget.
Calling tax evasion a “monster,” Sanni advocated for deeper digital integration between FIRS and OAGF through platforms like TaxPro MAX and GIFMIS. Without such synergy, he cautioned, Nigeria’s tax system would remain fragmented and inefficient.
He called for institutionalised cooperation between both agencies to plug revenue leaks and support broader national development goals.