Revenue leakages persist despite tech tools, FIRS boss warns

Barbara Bako, Abuja.

Despite major investments in digital tax tools like GIFMIS and TaxPro MAX, significant lapses in tax compliance by Ministries, Departments, and Agencies (MDAs) continue to result in revenue losses and recurring audit issues...

Executive Chairman of Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, raised the alarm at a two-day stakeholders’ engagement with the Office of the Accountant-General of the Federation (OAGF), held in Abuja, under the theme “Enhancing Tax Compliance Through Collaboration.”

“Despite the technological advances we’ve made, particularly with GIFMIS and our own TaxPro MAX platform, we continue to observe lapses in withholding tax deductions, VAT remittances, and stamp duty administration from the MDA space. These gaps, many of which are due to technical limitations and a knowledge deficit on tax compliance requirements, result in significant revenue losses and recurrent audit issues,” he said.

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Dr. Adedeji stressed that the responsibility for improving Nigeria’s tax compliance culture must begin within government institutions themselves.

“When government institutions are tax-compliant, the message it sends to the private sector and to citizens is powerful: that no one is above the law, and that transparency begins at home,” he said.

“If we must grow revenue to meet our national development priorities, then we must begin by ensuring that public sector actors play by the rules and help others do the same,” he added.

He described the event as a “strategic turning point” and “a joint mission” to address inefficiencies, strengthen compliance systems, and align public finance operations through cross-agency collaboration.

“This engagement is not another conference, it is a joint mission. It is a collaborative task to standardize systems, deepen understanding, address operational inefficiencies, and align our collective responsibilities within the public finance management ecosystem,” he added.

The Accountant-General of the Federation, Shamsudeen Babatunde Ogunjimi, echoed the FIRS Chairman’s concerns and stressed the importance of working together to fulfill national revenue targets and economic goals.

“Taxation remains the lifeblood of any economy, and for us in Nigeria, improving tax compliance is not just a fiscal priority but a national imperative,” he said.

Referring to President Bola Tinubu’s economic vision, he stated; “One of the key objectives of the renewed hope agenda of Mr President is to diversify revenue sources and reduce reliance on volatile oil revenues, in other to achieve this collaboration between revenue-generating agencies and other stakeholders becomes indispensable.”

Ogunjimi also highlighted the role of digital innovation, transparency, and accountability in delivering results:

“By leveraging technology, strengthening accountability, and promoting transparency and probity. We can significantly enhance compliance and boost government revenue for sustainable development.”

He praised FIRS for expanding the tax net and digitizing operations and declared the workshop open.

“Together, we can build a robust tax system that supports Nigeria’s economic growth and delivers on the promises of good governance,” he said.