FG losing revenue through improper tax remittance by MDAs – FIRS
Omeiza Bilal
The Federal Inland Revenue Service (FIRS), says improper remittance of withholding tax, Value Added Tax (VAT) and stamp duty by Ministries, Departments and agencies (MDAs) has led to significant revenue loss to the federation account.
Executive Chairman of FIRS, Zacch Adedeji, who said this at the FIRS–OAGF stakeholders’ engagement, insisted that government institutions must lead by example in tax collection and administration.
The theme of the stakeholder’s engagement is titled: Enhancing Tax Compliance through Collaboration”.
He said, “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.
“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. Our credibility as public institutions are tested first by our own adherence to tax regulations. 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.
The FIRS boss said there is a need to create awareness in order to boost tax collection adding that increased collaboration with revenue generating agencies is the way to go.
“At the Federal Inland Revenue Service, we are deeply aware that effective tax administration does not operate in isolation. It is the product of deliberate cooperation, mutual understanding, and well-coordinated systems among critical institutions of government.
“The Office of the Accountant-General of the Federation, with its central role in financial controls and disbursements across Ministries, Departments, and Agencies (MDAs), stands out as a pivotal partner in the effort to improve tax compliance, accountability, and ultimately, Nigeria’s revenue generation performance.
“This workshop, therefore, is not just an opportunity to share knowledge, but a strategic turning point to co-design solutions that will close the existing gaps and build a smarter, more efficient, and technology-driven tax compliance culture in Nigeria.
“We must commit to building stronger bridges between FIRS and the OAGF, establishing clear reporting and escalation channels for tax remittance lapses, embedding compliance education in the internal training curriculum for public finance officers, and designing feedback loops to ensure that both GIFMIS and TaxPro MAX evolve to meet our shared needs,” he added.
In his opening remarks, the Accountant-General of the Federation (AGF), Babatunde Ogunjimi, insisted that improving tax compliance among Nigerians is now a national priority.
The AGF said there is a pressing need to optimize tax collection which he admitted can only come when Ministries, Departments and Agencies collaborate.
“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. 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 order to achieve this collaboration between revenue-generating agencies and other stakeholders becomes indispensable.
“This engagement provides a unique platform to foster synergy between the FIRS and OAGF, align our strategies, and address challenges hindering optimal tax collection and remittances.
“By leveraging technology, strengthening accountability, and promoting transparency and probity. We can significantly enhance compliance and boost government revenue for sustainable development. This engagement also provides the opportunity to address Mr. President’s desire to achieve a $1 trillion economy by 2030.
“Together, we can build a robust tax system that supports Nigeria’s economic growth and delivers on the promises of good governance. I look forward to fruitful deliberations and hereby declare this engagement open,” he said.
