Analyst Highlights Adedeji’s Role in FIRS Tax Reform

A policy analyst, Arabinrin Aderonke, has shed light on the efforts of Dr. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), in driving tax reforms under President Bola Ahmed Tinubu’s administration.

In her piece titled “Taxation: the Uncommon Ideology of the Tax Boss,” Aderonke discussed how these reforms aim to foster an environment conducive to economic growth in Nigeria. She noted that Adedeji’s vision for the tax system is designed to support economic success rather than impede it.

Aderonke highlighted Adedeji’s shift from traditional tax practices towards creating a more business-friendly environment. He has addressed issues of over-taxation and redundant policies, which he sees as indicative of systemic flaws. Following President Tinubu’s directive, Adedeji emphasizes taxing economic successes such as profits and wealth, rather than penalizing investments or targeting the economically disadvantaged. This strategy is intended to allow businesses in Nigeria to grow without the heavy burden of excessive taxes.

Dr. Adedeji perceives his role not merely as a tax enforcer but as a partner in business success. He takes satisfaction in the growth of manufacturers and other businesses, believing that their success benefits everyone, including the FIRS and the nation.

To illustrate this, the Technical Assistant, Broadcast Media, at FIRS explained that Adedeji envisions a model where the tax system benefits proportionately as businesses grow. For example, if a business achieves a success level of 10, its tax contribution might be 3; at a level of 20, it would be 6; and at 30, it would be 18. This model aligns tax contributions with business growth, integrating FIRS’s objectives with the prosperity of businesses.

Under Adedeji’s leadership, the FIRS is positioning itself as a partner in economic growth. The focus is not just on revenue collection but on driving expansion across all sectors. By adopting equitable and growth-oriented tax policies, the FIRS aims to support businesses and enhance national prosperity.

Adedeji’s innovative approach to taxation, which is both pro-people and economically beneficial, comes at a crucial time when Nigeria’s economy needs stimulation. In summary, Dr. Adedeji’s vision for the FIRS promises to transform Nigeria’s tax system, creating a framework where growth and prosperity are intertwined.