The acting Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, on Monday, pledged to surpass Africa’s average tax-to-GDP ratio of 16.5 per cent and achieve an impressive 18 per cent within three years.
Mr Adedeji disclosed this while assuming office on Monday.
Last Thursday, President Bola Tinubu approved the appointment of Zacch Adedeji as the new Acting Executive Chairman of the Federal Inland Revenue Service (FIRS).
The President also directed the erstwhile FIRS Chairman, Muhammad Nami, to proceed on three months of pre-retirement leave, as provisioned by Public Service Rule (PSR) 120243, with immediate effect, leading to his eventual retirement from service on 8 December 2023.
Mr Adedeji was appointed in an acting capacity for 90 days before his subsequent confirmation as the substantive Executive Chairman of the Federal Inland Revenue Service for a term of four (4) years in the first instance.
Assuming office on Monday, Mr Adedeji said, “Our aspiration is audacious to surpass Africa’s average tax-to-GDP ratio of 16.5 per cent and achieve an impressive 18 per cent within three years.
“By doing so, we aim to reduce our nation’s reliance on borrowing and ensure financial sustainability,” Mr Adedeji said.
He explained that the FIRS will commit to innovation, technology, and fresh ideas in its activities.
“As we chart our course ahead, FIRS is committed to placing innovation, technology, and fresh ideas at the forefront of our operations. This strategic focus will empower us to enhance efficiency, fortify against revenue leaks, and bolster coordination and accountability within our organization.
“Quality data will be the cornerstone of our operations, enabling us to measure our progress, make informed decisions, and maintain the highest standards of accountability. We recognise that data-driven strategies are essential to our success,” Mr Adedeji was quoted by BusinessDay as saying.
“Our overarching goal is to nurture voluntary tax compliance by establishing a modern, dependable tax system that garners the trust and admiration of all stakeholders. Through this, we hope to create an environment where taxpayers willingly fulfil their civic duties,” he said.
On tax defaulters, Mr Adedeji said the service will be enforcing an extensive enforcement system that prevents citizens from defaulting while ensuring integrity and fairness.
“For those who deviate from their tax obligations, be rest assured, we will enforce our responsibilities judiciously. The principles of integrity, confidentiality, professionalism, and fairness are non-negotiable in our service to the nation.
“Upholding these values will guide our actions and interactions as we work tirelessly to fulfil our mission. I pledge to maintain an open-door policy, actively engaging with stakeholders to collaboratively construct a tax administration that we can all take pride in.
“Together, we will build an institution that serves as a beacon of excellence,” he said.
In his handover speech, Mr Nami announced that the FIRS is currently contributing over 70 per cent of all revenues the Federation Account Allocation Committee (FAAC) disbursed monthly.
He explained that the FIRS is on track to set yet another record in 2023 as it collected over N8.5 trillion (cash) between 1 January to 14 September 2023, and has assessed, reconciled and recovered over N4 trillion outstanding tax liabilities and sequestered funds from NNPC on behalf of the Federation.
He said the total sum of over N12 trillion is exclusive of amounts invested by taxpayers under the Road Infrastructure Tax Credit Scheme and tax implications of waivers by the government from January 2023 to date.
“Certainly, the projections by the current government of tax to GDP of 18 per cent in another four years is not only realisable but can be surpassed,” he said.
