Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), is gaining international recognition for his reforms of Nigeria’s tax system. These changes include legislative action, structural reorganization, and technological advancements. They are reshaping the country’s fiscal landscape and earning him accolades globally.
Modernizing Nigeria’s Tax System
Adedeji’s efforts focus on consolidating tax laws, simplifying compliance, and using technology to enhance revenue collection. One key project is the modernization of the TaxProMax system, which has automated over 80% of manual processes. This digital transformation streamlines interactions between the FIRS and taxpayers, making tax compliance easier, especially for small business owners.
Additionally, the reforms aim to broaden Nigeria’s tax base by integrating more small and medium-sized enterprises (SMEs) into the system. The recent passage of the Nigeria Tax Bill 2025 introduces significant changes, including reducing the Company Income Tax (CIT) rate from 30% to 27.5% in 2025, with plans to lower it further to 25%. Small businesses with annual revenues below ₦50 million will also receive full exemptions from income and withholding taxes.
International Recognition
Adedeji’s contributions to tax administration have received international acclaim. At the recent 96th Management Committee Meeting of the Commonwealth Association of Tax Administrators (CATA) in London, he was honored for his exceptional work. CATA’s Executive Director and Chairman praised Adedeji’s leadership and Nigeria’s role in supporting CATA’s mission to advance tax administration among member countries.
This recognition highlights the importance of Adedeji’s efforts in transforming Nigeria’s tax reform approach. It sends a strong message that the country is committed to improving its systems and sharing experiences globally.
Key Components of the Tax Overhaul
Several key components of Adedeji’s tax overhaul contribute to its success:
- Technology Adoption: Technology plays a central role in tax collection, reducing manipulation risks and closing loopholes. This makes it easier for taxpayers to understand and meet their obligations. The FIRS also launched a new USSD code (*829#) to simplify tax processes and provide seamless access to essential services via mobile phones.
- Policy Reforms: The government has implemented reforms to boost local production and encourage the use of made-in-Nigeria goods. Key initiatives include the “Nigeria First” policy and Executive Order 003.
- Administrative Reforms: The FIRS has undergone reforms to enhance transparency and efficiency. These reforms mandate the exclusive use of the TaxPro Max platform for all tax and levy collections.
Challenges and Future Outlook
Despite the progress, challenges remain in fully realizing the benefits of the tax overhaul. These include addressing policy inconsistencies, improving infrastructure, and strengthening regulatory agencies.
Looking ahead, Adedeji has set an ambitious revenue target of N25.2 trillion for 2025. This goal will rely on capacity building, infrastructure enhancements, and technological advancements. With sustained momentum and strategic reforms, Nigeria is poised to transform its tax system and promote sustainable economic growth.
