FIRS Chairman Assures Nigerians That Tax Reforms Will Not Introduce New Taxes

Dr. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), has assured the public that the proposed tax reforms will not involve new taxes or increases to existing rates. Speaking at an interactive session in Abuja with Senator Sani Musa, Chair of the Senate Committee on Finance, Adedeji clarified that the reforms are intended to streamline tax administration and reduce the number of taxes paid by Nigerians.

He emphasized that the tax policies under President Bola Tinubu’s administration aim to “tax prosperity rather than poverty,” focusing on returns instead of investments. Adedeji stated, “No agency will be merged in the process of carrying out the reform, and no jobs will be lost.” The reforms are designed to enhance the simplicity and efficiency of tax administration, rather than increasing tax burdens.

Four executive bills have been forwarded to the National Assembly to legalize the reforms: the Nigeria Tax Bill, Nigeria Tax Administration Act (Amendment) Bill, Nigeria Revenue Service Bill, and Joint Revenue Board (Establishment) Bill. These bills aim to harmonize tax laws, promote efficiency, broaden the tax base, and align Nigeria’s tax system with international standards.

Addressing the proposed change of FIRS to Nigeria Revenue Service (NRS), Adedeji explained that the current name does not fully represent the agency’s functions, especially concerning the distribution of Value Added Tax (VAT), where 85% is allocated to states and 15% to the federal government.

Senator Sani Musa praised Adedeji for meeting revenue targets and called for continued progress, while other committee members commended the FIRS for its increased revenue generation, particularly in non-oil sectors.