The Federal Government has raised concern over persistent revenue losses caused by poor tax compliance among its Ministries, Departments, and Agencies (MDAs), particularly in the areas of withholding tax, Value Added Tax (VAT), and stamp duty remittances.
Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, disclosed this at a stakeholders’ engagement between the FIRS and the Office of the Accountant-General of the Federation (OAGF), held in Abuja.
Despite deploying platforms like GIFMIS (Government Integrated Financial Management Information System) and the FIRS’ TaxPro MAX, Dr. Adedeji lamented that MDAs still default in remitting taxes, citing technical gaps and poor understanding of compliance obligations as major setbacks.
“These gaps result in significant revenue leakages and recurring audit findings,” he said. “Public institutions must lead by example to inspire compliance across the private sector.”
He stressed that the credibility of public institutions depends on how well they follow tax laws, calling for deeper collaboration with the OAGF to correct systemic lapses and boost revenue performance.
The two-day engagement, according to Adedeji, aims to “co-design solutions” that will close tax remittance gaps and drive a technology-driven compliance culture. Key focus areas included the FIRS 2025 Strategic Roadmap, VAT processes, withholding tax, stamp duty administration, and real-time tracking through TaxPro MAX.
Highlighting the way forward, the FIRS boss listed next steps including:
- Strengthening FIRS–OAGF institutional collaboration
- Structured reporting for tax lapses
- Integrating tax compliance modules in public finance officer training
- Continuous improvement of GIFMIS and TaxPro MAX
On his part, the Accountant-General of the Federation underscored taxation as the “lifeblood of any economy,” stressing that improved compliance is critical to achieving President Tinubu’s goal of a $1 trillion economy by 2030.
“This alignment between FIRS and OAGF is essential for a more efficient tax system and to deliver the dividends of good governance,” he said.
