New tax bills will not affect agency funding, efficiency, says FIRS Chairman
Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has reassured that the four tax bills currently before Nigeria’s National Assembly will not reduce the funding or operational efficiency of government agencies.
The assurances came on Wednesday when Adedeji addressed the heads of the National Agency for Science and Engineering Infrastructure (NASENI), the National Information Technology Development Agency (NITDA), and the Tertiary Education Trust Fund (TETFUND) at the Revenue House in Abuja.
During the meeting, Adedeji responded to concerns surrounding a proposal to rename the FIRS as the Nigeria Revenue Service (NRS), clarifying that the change is intended to streamline and improve agency efficiency.
“There is nothing in the bills that will reduce your funding, effectiveness, or efficiency,” Adedeji assured. “These bills are crafted to establish a sustainable foundation for your operations.”
The tax bills aim to support the federal government’s broader fiscal reform strategy, which seeks to improve tax efficiency and simplify compliance. Adedeji emphasized that the main goal is to align government revenue practices with current fiscal demands to ensure all agencies are well-funded and effective.
Bills Aim to Let Agencies Focus on Core Functions
Adedeji further highlighted that the proposed legislation would enable government agencies to concentrate on their core responsibilities without the added task of revenue collection. “The bills, once enacted, will allow agencies to focus on their primary functions instead of managing tax collection duties,” he explained.
Addressing concerns that the reforms might lead to a reduction in agency roles, Adedeji said, “Change should not be seen as a reduction or elimination of roles but as a necessary adjustment to our current realities. The fragmentation of tax responsibilities has been a long-standing issue, and these reforms aim to harmonize laws that have previously led to a multiplicity of taxes.”
According to Adedeji, President Bola Tinubu’s administration has recognized the need for a unified tax code to reduce complexity and stimulate economic growth. “The Nigeria tax bill reflects a broader principle of reform aimed at updating our framework to better align with today’s needs,” Adedeji added.
Consultations Continue Amid Regional Concerns
The agencies present at the meeting, including NASENI, NITDA, and TETFUND, outlined their mandates and contributions to Nigeria’s economic growth. The presentation came amid ongoing consultations with regional stakeholders, including the Northern States Governors Forum (NSGF), which recently expressed concerns about the bills’ potential impact on northern interests.
The presidency responded, assuring governors that the reforms are designed to optimize Nigeria’s tax framework and benefit all regions.
Although the National Economic Council (NEC) recently advised President Tinubu to withdraw the bills to allow for further consultation, Tinubu stated that the proposals would remain under review by the National Assembly.
The four tax reform bills, including the Nigeria tax bill, tax administration bill, and joint revenue board establishment bill, are expected to address inefficiencies and make Nigeria a more attractive destination for international investment, Adedeji noted
