The International Monetary Fund has praised the Federal Inland Revenue Service for its ongoing institutional reforms, describing the agency’s efforts as “significant progress” in Nigeria’s tax administration landscape.
The commendation came from Paulo Paz, a Senior Economist in the IMF’s Fiscal Affairs Department, during the opening of an IMF-supported headquarters mission at the Revenue House in Abuja on Wednesday.
Recognition of Leadership and Progress
Paz acknowledged the “good work that FIRS has been providing to the citizens” under the leadership of Chairman Zacch Adedeji. He emphasized that the Bretton Woods institution would continue supporting the agency in delivering effective tax administration to promote Nigeria’s economic growth and development.
The IMF mission to Nigeria aims to identify areas where the organization can provide additional support to FIRS, particularly in addressing challenges related to recently signed tax legislation.
Impact of New Tax Laws
Discussing the implications of Nigeria’s four new tax laws, Paz noted their transformative potential for the country’s revenue system.
“We want to know how we can best support you with this new challenge,” Paz stated. “Our take on the four tax laws is, first, a recognition of the very good work that FIRS has been providing to the citizens. You have at the same time the recognition and new responsibilities with these very powerful laws, which will increase the relevance of tax administration in Nigeria.”
He expressed the IMF’s commitment to the partnership: “I want to express our honor of being here and being a partner of FIRS. Thank you for your trust in our advice. We congratulate you on the good results so far. There is more to come, and we are here to help.”
Continued Partnership and Digital Transformation
FIRS Chairman Adedeji, represented by his Chief of Staff Tayo Koleosho, welcomed the continued collaboration and indicated that the partnership would persist as the agency transitions to become the Nigeria Revenue Service (NRS) next year.
“IMF has gone on this journey with us, and I think we are in a good place to continue the journey together,” Koleosho said. “We are working together on digital transformation, VAT automation, and looking at even the compliance programme and the ability to automate some of those things.”
Measurable Improvements in Tax Administration
Mrs. Bolaji Akintola, Coordinating Director of the Corporate Services Group, highlighted the IMF’s role as a critical stakeholder in FIRS’ reform journey. She revealed that the agency, with IMF support, conducted comprehensive evaluations using the Tax Administration Diagnostic Assessment Tool (TADAT) in both 2018 and 2023.
“The fact that the results of the 2023 TADAT showed significant improvement on those of 2018 is indicative of the commitment of the Service towards institutional excellence,” Akintola explained.
She expressed confidence in continued progress: “Let me assure you that if another TADAT is conducted today, the result will be better than that of 2023 because a good number of the weak indicators from the 2023 Performance Assessment Report have been addressed and some have been codified in the four tax reform laws recently signed by President Bola Tinubu.”
The ongoing collaboration between the IMF and FIRS focuses on portfolio management, compliance programs, and digital transformation initiatives aimed at strengthening Nigeria’s domestic revenue mobilization capacity.
