The Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, has urged State Accountants-General to promptly remit Value Added Tax (VAT) and Withholding Tax (WHT) to enhance Internally Generated Revenue (IGR) in Nigeria.
Speaking at a two-day meeting with FIRS officials and State Accountants-General in Abuja, Adedeji highlighted the importance of revenue collectors stepping up their efforts amid the country’s ongoing economic challenges.
“It is no longer news that our nation is facing economic challenges, but as a government, it is imperative that we look inward and increase our internally generated revenue. However, this does not necessarily mean increasing tax rates. Instead, we must focus on blocking leakages and ensuring full compliance with the existing tax laws, a task that I believe we can achieve together,” he stated.
Emphasizing the crucial role of Accountants-General, Adedeji said, “You are responsible for ensuring that VAT is charged and remitted, that Stamp Duties are paid on contracts, and that Withholding Tax (WHT) elements in contracts are properly withheld and remitted.”
He underscored the necessity of collaboration to fulfill their collective mandate of boosting revenue for national prosperity. Adedeji noted that FIRS cannot achieve its revenue targets without the effective partnership and support of state officials, stating, “We are all agents of the same government, united by one vision: to ramp up revenue for the growth and development of Nigeria and, by extension, for the benefit of its citizens.”
Highlighting the significance of collaboration in enhancing tax compliance, he pointed out that countries and institutions that have made notable progress in tax collection achieved this through strong partnerships and support systems that encourage compliance across all tax categories.
Mr. Adedeji also noted that FIRS is on track to achieve an 18% Tax-to-GDP ratio by 2026, fueled by technological integration, process improvements, and capacity building for staff.