Fed Govt Cites Revenue Losses from Tax Lapses in MDAs, Seeks Solutions
By Patience Ikpeme
The federal government is experiencing revenue losses due to identified lapses in withholding tax deductions, Value Added Tax (VAT) remittances, and stamp duty administration within Ministries, Departments, and Agencies (MDAs).
Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), raised the alarm during a recent FIRS–Office of the Accountant-General of the Federation (OAGF) Stakeholders’ Engagement.
Adedeji stated that despite technological advancements, particularly with the Government Integrated Financial Management Information System (GIFMIS) and FIRS’s own TaxPro MAX platform, the FIRS continues to observe deficiencies in these tax areas within the MDA space.
He clarified that these gaps, often stemming from technical limitations and a lack of knowledge regarding tax compliance requirements, lead to substantial revenue losses and recurring audit issues.
Adedeji stated that the Office of the Accountant-General of the Federation, given its central function in financial controls and disbursements across MDAs, stands as a crucial partner in efforts to improve tax compliance, accountability, and ultimately, Nigeria’s revenue generation performance.
He described the workshop not merely as an opportunity to share knowledge, but as a strategic moment to collaboratively design solutions that will bridge existing gaps and cultivate a smarter, more efficient, and technology-driven tax compliance culture in Nigeria.
The FIRS boss contended that tax compliance by government institutions sends a powerful message to the private sector and citizens: that no one is above the law, and that transparency begins within public institutions. He added that for Nigeria to grow revenue to meet its national development priorities, public sector actors must first abide by tax regulations and assist others in doing the same.
This engagement, he explained, is a joint mission—a collaborative endeavor to standardize systems, deepen understanding, address operational inefficiencies, and align collective responsibilities within the public finance management ecosystem. Over two days, FIRS and OAGF teams immersed themselves in crucial areas, including the FIRS 2025 Strategic Roadmap to set the direction; technical sessions on the VAT regime, Withholding Tax, and Stamp Duties, and their impact on public sector entities; an honest appraisal of how GIFMIS can be better utilized to close remittance gaps; and interactive sessions focusing on institutional collaboration and the cultural re-orientation necessary for sustainable compliance. The engagement also showcased how innovations like TaxPro MAX can support real-time remittance tracking and data reconciliation.
Zacch Adedeji concluded by noting that the success of this engagement hinges on subsequent actions. He called for a commitment to building stronger connections between FIRS and the OAGF; establishing clear reporting and escalation channels for tax remittance lapses; integrating compliance education into internal training curricula for public finance officers; and designing feedback loops to ensure that both GIFMIS and TaxPro MAX evolve to meet shared needs.
The Accountant-General of the Federation, speaking at the event, stated that taxation remains the lifeblood of any economy, and for Nigeria, improving tax compliance is not merely a fiscal priority but a national imperative. By utilizing technology, strengthening accountability, and promoting transparency and probity, he conveyed that compliance can be significantly improved, and government revenue can be boosted for sustainable development.
This engagement provides a distinctive platform to foster synergy between the FIRS and OAGF, aligning strategies and addressing challenges that hinder optimal tax collection and remittances. It also provides an opportunity to address Mr. President’s ambition to achieve a $1 Trillion economy by 2030.
Together, he concluded, a robust tax system that supports Nigeria’s economic growth and delivers on the promises of good governance can be built.
