In a recent leadership transition at the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, the newly appointed chairman, has expressed deep concern over the nation’s ongoing revenue crisis. Dr. Adedeji officially assumed his role, succeeding Muhammad Nami, and has wasted no time in acknowledging the urgency of the situation.
He highlighted that a staggering 96 percent of the Federal Government’s revenue in the previous year was allocated to servicing the nation’s debt. This allocation, Dr. Adedeji stressed, is an unsustainable financial predicament for the country.
Former FIRS Chairman Muhammad Nami reported that, as of mid-September, the agency had successfully generated N8.5 trillion in revenue for the federation account. This achievement underscores the significance of addressing the revenue crisis, as one of the primary reasons for the removal of the petrol subsidy was the insufficient funds available for running the nation’s affairs.
Dr. Adedeji emphasized, “We are in a revenue crisis, government revenue is low amid a huge public debt. Last year, 96 percent of government revenue went into debt servicing.” Recognizing the gravity of the situation, he stated, “Where debt has grown bigger than the Gross Domestic Product, GDP, and debt servicing faster than revenue, immediate actions have to be taken to remedy the situation.”
To bolster revenue generation, Dr. Adedeji outlined his agenda, which includes aligning with the reforms initiated by President Bola Tinubu, who established the Presidential Fiscal Policy and Tax Reforms Committee. This committee’s mandate is to design and implement fiscal policy and tax reforms to stimulate economic prosperity.
Dr. Adedeji emphasized that the FIRS would innovate and modernize its operations, incorporating robust technology and fostering creativity. He pledged to eliminate revenue leakages and ensure that all tax revenues find their way into government coffers.
He said, “We must definitely plug leakages. We need to strengthen our internal processes and control mechanisms. We must put a high premium on effective coordination of assigned tasks and delegated responsibilities.”
Dr. Adedeji also stressed his commitment to encouraging voluntary compliance among taxpayers. He plans to engage stakeholders and raise awareness of the importance of fulfilling tax obligations.
He concluded by stating, “We will build a tax system that is smart and modern, one with unquestionable integrity and will earn the trust as well as admiration of stakeholders.” Dr. Adedeji’s vision is to create a tax administration that all Nigerians can take pride in and trust.
