The Federal Inland Revenue Service (FIRS) is set to advance Nigeria’s tax system by introducing various incentives designed to integrate informal sector players into the tax framework.
FIRS Executive Chairman, Zacch Adedeji, outlined these plans during a Private Sector Stakeholders’ Engagement in Lagos, organized by the Lagos Chamber of Commerce and Industry (LCCI) and FIRS. The event focused on “Emerging Tax Matters.”
Represented by Mrs. Oti Olaniyi, Acting Director of the Medium Taxpayers Department (South), Adedeji highlighted the challenges of incorporating the informal sector, which makes up a significant portion of the economy. To address these challenges, the FIRS will soon launch the FIRS e-Invoice system to simplify tax payments.
Adedeji emphasized the need for transparency and effectiveness in implementing these incentives, stressing that their impact should align with national development goals. The informal sector, with many small and micro businesses outside the formal tax system, will benefit from simplified tax regimes and registration incentives.
The FIRS has recently restructured into three operational groups – Small/Emerging Taxpayers, Medium Taxpayers, and Large Taxpayers – to better manage and support different taxpayer segments.
Looking ahead, the introduction of the FIRS e-Invoice aims to facilitate real-time transaction validation and storage, supporting various transaction types under the Tax Administration and Enforcement Act 2007. This initiative is part of FIRS’s Digital Transformation Strategy, designed to enhance tax system efficiency.
Adedeji concluded by underscoring the importance of embracing reform, leveraging technology, and ensuring transparency to foster sustainable growth and equitable development in Nigeria.
In his remarks, LCCI President Gabriel Idahosa emphasized the need for ongoing collaboration between the private sector and government to ensure tax policies encourage business innovation and competitiveness.