Zacch Adedeji: Nigeria needs more taxpayers — not new taxes

Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS) says the proposed tax reform bills will increase the number of eligible taxpayers — not create new taxes.

Adedeji spoke on Tuesday during the second edition of the annual national dialogue organised by Nigeria Politics Online (NPO).

Adedeji, represented by Umar Idris, director of intergovernmental relations at the FIRS, said the proposed tax laws already at the national assembly are in the spirit of reforming the tax system so that the country can generate more without necessarily burdening the citizens.

“We don’t need new taxes; what we need is new taxpayers,“ he said.

“We want to simplify tax payments with the hope of maximising revenue. 

“We are committed to fair tax administration, responsive and accessible service to optimise revenue for national development.”

Adedeji disclosed that all the revenue-collecting agencies have posted good results so far this year, exceeding their targets from January to October.

According to the taxman, the signs are good that the agencies will exceed their targets for the year.

The FIRS boss said taxation cannot happen without cooperation between the tax agency and the taxpayers.

“So we are moving from voluntary compliance to cooperative compliance,” he said.

“Let’s sit and have a discussion on how best we can improve our revenue through taxation.”

On how revenue can be generated by the government, Adedeji said collaboration with private sector investors can address funding constraints.

He said the partnership would provide innovative solutions to public service delivery and infrastructural development. 

“In this regard, encouraging private sector investment can foster a business-friendly environment, offer incentives, and promote public-private partnerships,” the FIRS chairman said.

Adedeji also highlighted asset optimisation, digitalisation, value-added tax (VAT), privatisation, encouraging private-sector investment and implementing cost-cutting measures as revenue options for the government.

He said it is also important to make tax payments convenient and accessible, adding that his administration is working hard to ensure people can pay taxes easily.

‘GOVERNMENT RAISING FUNDS FROM PEOPLE WHO ARE ECONOMICALLY DRAINED’

In his welcome address, Semiu Okanlaawon, publisher of NPO Reports, said the topic of the lecture was inspired by the dilemma Nigeria is currently facing: trying to raise revenue from people who are economically drained and can barely feed.

Speaking during the panel session, Mojid Jamiu, executive editor of Upshot Media, said there should be a correlation between the increase in Nigeria’s revenue, external reserves, and the livelihood or purchasing power of an average Nigerian.

“The government should improve on providing a conducive environment that can assist people to improve the value chain and increase local productivity,” he said.

He also said the government should look into subsidising basic amenities for Nigerians to mitigate the impact of ongoing reforms.