How Zacch Adedeji Broke Record of Tax Administration in Nigeria in 2024
- The chairman of the Federal Inland Revenue Service (FIRS) has set new records for Nigeria’s tax administration
- The FIRS exceeded tax revenue projections and modernised processes under Adedeji’s leadership
- One of his reforms was the modernisation of the TaxProMax system. By automating over 80% of previously manual processes
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
In a year marked by significant reforms, Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), emerged as a transformative leader, setting new benchmarks for Nigeria’s tax administration.
Under his stewardship, the FIRS surpassed its revenue targets, modernised tax processes, expanded the tax base, and championed equitable taxation policies.
Source: UGC
Leveraging technology for efficiency
Appointed as part of President Bola Ahmed Tinubu’s Renewed Hope Agenda, D Adedeji embraced his mandate to overhaul the tax system with purpose and determination.
According to tax analyst Aderonke Atoyebi, Adedeji epitomised leadership, prioritising impact over position and transforming the FIRS into a high-performing agency that drives Nigeria’s economic recovery.
“Leadership is about making an impact, and Dr. Zacch wasted no time proving this,” Atoyebi noted, praising his swift actions and practical reforms.
Central to Adedeji’s reforms was the modernisation of the TaxProMax system. By automating over 80% of previously manual processes, the platform enhanced transparency, streamlined tax collection, and improved service delivery.
"This innovation made tax processes more accessible and user-friendly, especially for small business owners," Atoyebi observed. The introduction of the National Single Window Project (NSWP) further simplified trade and bolstered Nigeria’s global competitiveness by integrating tax and trade systems into a unified, efficient portal.
Expanding the tax base
Traditionally reliant on oil revenue, Nigeria’s financial stability necessitated diversification. Adedeji’s approach included incentives and support for small and medium-sized enterprises (SMEs) to join the tax system.
“He made it easier for SMEs to pay taxes and grow within the system, ensuring broader participation in revenue generation,” Atoyebi emphasised.
These efforts resulted in FIRS exceeding its 2024 revenue target of ₦19.4 trillion, a staggering increase compared to the ₦12.3 trillion collected in 2023. The record-breaking achievement underscored the efficacy of Adedeji’s strategies.
Promoting equity and fairness
Adedeji’s insistence on a fair tax system was another hallmark of his leadership. By prioritising policies that reduced the tax burden on the poor while ensuring wealthier individuals and corporations contributed their fair share, he redefined tax equity in Nigeria.
“The philosophy of ‘We tax the fruit, not the seed’ has made the system more inclusive and less burdensome,” Atoyebi said. Measures like exempting minimum-wage earners and small businesses with turnover under ₦50 million from income tax were particularly impactful.
Transparency and accountability
Adedeji’s reforms extended to combating corruption within the FIRS. Establishing the Anti-Corruption and Transparency Unit (ACTU) in collaboration with the Independent Corrupt Practices Commission (ICPC) ensured integrity in tax administration.
“This step aligns with his broader vision for an equitable tax system that prioritises prosperity,” Atoyebi remarked.
Legislative milestones
The Tax Reform Bill 2024, a cornerstone of Adedeji’s initiatives, passed its second reading in the Senate. The bill aims to consolidate fragmented tax laws, simplify compliance processes, and promote fairness. It introduces tax tribunals and ombudsperson offices to resolve disputes transparently.
“Streamlining tax laws will reduce bureaucratic hurdles and encourage business growth, particularly for SMEs,” Atoyebi explained.
Enhancing workforce welfare
Recognising the importance of a motivated workforce, Adedeji prioritised FIRS employee welfare. His leadership fostered a committed and energised team, from easing promotion processes to implementing support programmes.
Global Influence
As President of the Commonwealth Association of Tax Administrators (CATA), Adedeji leveraged international platforms to share best practices and position Nigeria as a leader in tax administration. His initiatives strengthened Nigeria’s standing in global trade and tax discourse.
A path toward fiscal independence
While significant progress has been made, challenges remain. Adedeji’s commitment to fully implementing reforms nationwide reflects his dedication to a resilient and inclusive tax system.
“This year has been about more than just revenue; it’s about setting Nigeria on a path toward fiscal independence and resilience,” Atoyebi concluded.
As Nigeria continues to reap the benefits of these transformative reforms, Dr. Zacch Adedeji’s leadership is a testament to the power of purposeful governance.
FIRS, security agencies partner to boost revenue
Legit.ng earlier reported that the FIRS has reaffirmed its commitment to fostering strategic collaborations with security agencies to enhance tax collection and enforcement.
This was disclosed during a security briefing and parley involving top FIRS officials and law enforcement agencies.
Gregory Wilfred Asuquo, Director of Security, Safety, and Fleet Management at FIRS, highlighted the critical role of security agencies in achieving the organisation’s ambitious tax targets.
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Source: Legit.ng
