Zacch Adedeji’s Bold Reforms Usher New Era at FIRS

Since his appointment as Executive Chairman of the Federal Inland Revenue Service (FIRS) in 2023, Dr. Zacch Adedeji has spearheaded a series of reforms that have significantly reshaped Nigeria’s tax landscape. His tenure has been marked by unprecedented revenue growth, technological innovation, and a commitment to fairness and transparency.

Unprecedented Revenue Growth

Under Dr. Adedeji’s leadership, FIRS achieved remarkable revenue milestones. In 2023, the agency collected ₦12.36 trillion, surpassing its target of ₦11.55 trillion. This upward trajectory continued into 2024, with FIRS collecting ₦21.6 trillion, exceeding the ₦19.4 trillion target. The first quarter of 2024 alone saw collections of ₦3.94 trillion, a 56% increase compared to the same period in the previous year.

Technological Advancements

Central to these achievements was the modernization of FIRS’s operations through technology. The TaxPro Max platform was upgraded with nine new modules, automating over 80% of previously manual processes. This transformation streamlined tax administration, making it more efficient and user-friendly for taxpayers.

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Additionally, the introduction of a USSD code revolutionized tax payments, allowing taxpayers to access information and make inquiries directly from their mobile phones. These innovations enhanced accessibility, transparency, and efficiency in tax administration.

Expanding the Tax Base

Dr. Adedeji recognized the importance of bringing more small and medium-sized enterprises (SMEs) into the tax net. By simplifying tax regimes and offering registration incentives, FIRS encouraged many businesses operating outside the formal tax system to comply. This approach not only broadened the tax base but also fostered a culture of voluntary compliance.

Promoting Fairness and Equity

A hallmark of Dr. Adedeji’s philosophy is encapsulated in his phrase, “We tax the fruit, not the seed.” This principle guided policies that reduced the tax burden on low-income earners and small businesses. For instance, individuals earning up to the minimum wage and businesses with annual turnover under ₦50 million were exempted from income tax. Such measures aimed to promote equity and stimulate economic growth.

Enhancing Transparency and Combating Corruption

To strengthen integrity within the tax system, FIRS established the Anti-Corruption and Transparency Unit (ACTU) in collaboration with the Independent Corrupt Practices Commission (ICPC). This initiative underscored Dr. Adedeji’s commitment to combating corruption and ensuring transparency in tax administration.

Legislative Reforms

Dr. Adedeji played a pivotal role in advancing legislative reforms to modernize Nigeria’s tax laws. The Tax Reform Bill of 2024, which passed its second reading in the Senate, aims to consolidate fragmented tax laws, simplify compliance processes, and promote fairness. The bill also proposes the establishment of tax tribunals and ombudsman offices to resolve disputes transparently.

Recognition and Awards

In recognition of his innovative approach to fiscal reforms, Dr. Adedeji received the Public Service Award for Fiscal Innovation at the Nigeria Excellence Awards in Public Service (NEAPS) in 2024. This accolade highlighted his impact on transforming Nigeria’s tax administration and contributing to economic stability.

Dr. Zacch Adedeji’s tenure at FIRS has been characterized by visionary leadership, strategic reforms, and a commitment to building a fair and efficient tax system. His efforts have not only enhanced revenue collection but also laid the foundation for sustainable economic growth in Nigeria. As the nation continues to navigate complex fiscal challenges, Dr. Adedeji’s reforms serve as a blueprint for effective tax administration and governance.