In this exclusive interview, the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, shares insights into the agency’s efforts to boost domestic revenue mobilisation, tax reforms, and the impact of President Tinubu’s economic policies on revenue growth. He also highlights the importance of tax education and compliance, and what Nigerians can expect in the next three years:
Q: How did you imagine your role as FIRS Chairman would be when you got the job?
A: I knew I would be working on domestic revenue mobilisation, and my initial appointment as Special Adviser to the President on Revenue was a precursor to my being appointed FIRS chairman. Our mandate is to mobilise domestic revenue to meet our goals.
Q: What specific mandate were you given, and how are you working to achieve it?
A: Our target is to mobilise domestic revenue to meet our goals. We set a target of N10 trillion for FIRS in 2023 and surpassed it, collecting N12.374 trillion. Our target for 2024 is N19.4 trillion.
Q: How did you achieve the 58% increase in tax revenue in the first quarter of 2024?
A: President Tinubu deserves all the credit for the courageous decisions he took at the beginning of this Administration, including the removal of fuel subsidy and unifying the exchange rate. We also granted a waiver on interest and penalties to encourage businesses to pay their tax liabilities.
Q: What impact did the waiver have on compliance?
A: We had over 75% compliance rate, and businesses owing us paid up their outstanding liabilities, helping us surpass our target for 2023.
Q: How are you addressing multiple taxation?
A: We are working with the Presidential Committee on Fiscal Policy and Tax Reforms to harmonise taxes and remove impediments to business growth. Our goal is to have a single-digit type of taxes in the country.
Q: What successes do you want to highlight?
A: Our success is founded on the fundamentals of economic development being set right by President Tinubu. We are investing in infrastructure and food security, and our team is working to make sure Nigerians are happy and prosperous.
Q: Are there areas where tax incentives might be helpful to economic growth?
A: Tax incentives can stimulate the economy, and we are reviewing incentives to ensure they are measured and effective.
Q: What are your key priorities in FIRS?
A: We have restructured FIRS to be customer-centric, focusing on taxpayers’ needs. We are investing in technology and developing our workforce to improve service delivery.
Q: How has lack of data impacted revenue collection?
A: We are making progress in data mining through the National Single Window Project and partnership with NIMC.
Q: How are you making it easier for Nigerians to comply with tax obligations?
A: We have provided a one-stop shop for taxpayers and made it easier to use technology to pay taxes.
Q: What plans do you have for tax education?
A: We are educating taxpayers about their civic responsibility to pay taxes, which fund infrastructure projects and security. We provide advisory services and get feedback from businesses.
Q: What can Nigerians look forward to in the next three years?
A: Nigerians should keep hope alive. The Renewed Hope Agenda will come to fruition, and we will achieve our goals and vision for the country.
