New FIRS Chairman targets 18% tax-to-GDP ratio

The new acting Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji has stated his commitment to surpass Africa’s tax-to-GDP ratio of 16% and extend Nigeria’s ratio to 18%.

Mr. Adedeji stated this when he officially resumed office as the country’s chief revenue collector.

In his words,

He noted that the FIRS will commit to innovation, technology, and novel ideas in its activities.

He said,

On tax defaulters, Mr Adedeji said the service will act responsibly by enforcing a comprehensive enforcement system that prevents citizens from defaulting while ensuring fairness and transparency.

He stated,

Nigeria’s current tax-to-GDP ratio stands at 10.8% in 2022- one of the lowest in the world. President Bola Tinubu has promised to increase this figure to 18% in the next three years.

Although Nigeria’s revenue generation increased by 56% to N10 trillion in 2022, the current administration believes there is more work to be done.

In a bid to sanitize the fiscal policy space, President Tinubu inaugurated the President Fiscal Policy and Tax Committee headed by former Fiscal Policy and Tax leader at PwC Mr. Taiwo Oyedele.

In the first six months of this year, the FIRS beat its target by collecting N5.5 trillion in taxes and is on course to beat its record of 2022.