As President Bola Tinubu’s administration charts a bold course towards economic diversification, one man stands out as a driving force behind Nigeria’s vision for a financially robust future: Dr Zacch Adedeji, Executive Chairman and CEO of the Federal Inland Revenue Service (FIRS). Since assuming office in September 2023, Adedeji has spearheaded a transformative agenda, shattering revenue records and redefining Nigeria’s tax administration landscape.
For decades, Nigeria’s economy has been vulnerable to fluctuations in global oil markets. However, under Adedeji’s visionary leadership, the FIRS has made strides towards reducing this reliance. With Adedeji in charge, the FIRS revenue target of 11.55 trillion was exceeded, generating 12.36 trillion.
Earning from the release of his performance commitment is one thing, being able to stimulate revenues in the face of economic dynamics is another achievement. Perhaps even more spectacular is the performance during the 1st quarter of the year 2024, whereby FIRS posted revenues of 3.94 trillion which is 56% higher than the same period of the previous year.
These numbers indicate progress in the evolution of tax administration in Nigeria from a pure bureaucratic institution to an effective agent of economic change.
For President Tinubu’s administration however, this was not only a monetary gain, but it also was a crucial advance in the national strategy of energy diversification, assisting in alleviating the impact of fluctuations in oil revenue on the country’s economy.
He set some policies and reforms into motion. One that aligns with President Tinubu’s renewed hope agenda, and is expected to position Nigeria’s economy on a global scale.
Among Adedeji’s more superior strategies has been the effective use and adoption of ICT as a tool for efficiency and transparency. The TaxProMax, which he describes as a Tax Administration Digital Platform has been consistent in enabling his transformational policies. Tactically in a bid to assist his clients and stakeholders in understanding the tax process seamlessly, Adedeji implemented 9 additional modules into the TaxProMax system incorporating IT tools that computerised nearly 80% of paper work. This not only eliminates most human errors but also allows for a quick and efficient tax collection environment on transparency and level of collection.
Respective systems within TaxProMax allow users to interact with the system by filing returns and accessing a variety of tax options on the internet, ease of compliance and time and energy spent on tax-fulfilling duties. Furthermore, the setting up of an operational data management unit within the agency under Adedeji’s leadership has ensured that problems of strategic management, evaluation and collection of tax were well integrated.
What we cannot take away from Adedeji is the vision of the need to renew Nigeria’s tax strategies to coincide with global advancements around the globe. One of the most radical measures in his reign was the implementation of crypto tax adjustments, making it appropriate for Nigeria to have a position on digital assets.
As there are over 35.5 million Nigerians conducting cryptocurrency transactions, the need for a well-structured framework for these transactions is more pressing. Adedeji’s strategy is to create a framework for digital assets, improve the level of detail in tax returns, and use e-payments to make compliance simple.
The adoption of cryptocurrencies under Nigeria’s tax system makes congruence between her tax policies and the realities of a digital economy seamless. This action not only boosts the progress we are making in the technology and finance industry, it also indicates to foreign investors that we are great proponents of modernity.
Another critical aspect of Dr Adedeji’s reforms has been his constant emphasis on tax education and public awareness creation. With the understanding of how challenging it is to mandate compliance, FIRS has implemented diverse initiatives to educate the populace on the importance of taxation and how It affects national development.
