Adedeji Urges States Accountant Generals to Block Revenues Leakages, Uphold Tax Laws

James Emejo in Abuja

The Executive Chairman, Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, yesterday made passionate pleas to states chief accounting officers to do more to plug revenue leakages and ensure full compliance with existing tax laws.

Adedeji made the plea at the opening of a workshop for States Accountant-Generals, Directors of Finance of the Federal Capital Territory Administration (FCTA) and Federal Government-owned Enterprises, on enhancing tax compliance and revenue generation in Abuja.

He said at a time when the nation is facing economic challenges, it was imperative that “we look inward and increase our internally generated revenue”.

He, however, emphasised that this does not necessarily mean increasing tax rates but cutting wastages and discouraging corrupt practices – a role which remained critical for accountant generals.

The FIRS boss said, “As you are aware, the Federal Inland Revenue Service is tasked with the crucial responsibility of assessing, collecting, and accounting for revenue accruable to the federation.

“However, we cannot achieve this mandate without your effective collaboration and support. Whether by virtue of legal authority or through our direct engagement, you, as Accountant-Generals, serve as vital agents of government, ensuring that taxes are collected and remitted in a timely and efficient manner.

“We are all agents of the same government, united by one vision: to ramp up revenue for the growth and development of Nigeria and, by extension, for the benefit of its citizens.”

He said, “You are responsible for ensuring that VAT is charged and remitted, that Stamp Duties are paid on contracts, and that Withholding Tax (WHT) elements in contracts are properly withheld and remitted.

“These are not just tasks assigned to you by law, but responsibilities that are central to the success of our collective mandate. We trust that, whenever we call upon you, we can count on your continued support and cooperation.”

Adedeji pointed out that the government had made efforts to simplify the tax remittance process, particularly through the centralised payment system where Accountant- Generals handle payments on behalf of government agencies.

This, he said, has been instrumental in ensuring swift remittance of taxes such as VAT, WHT, and stamp duties.

He said the federal government had further reduced the WHT rates to focus on taxing profits rather than revenue, a move that aims to ease the burden on businesses and citizens.

He explained that while the reduction in WHT may reduce the immediate tax collection, “we believe that with enhanced compliance and collaboration, we can expand the tax base and make up the difference”.

He said the FIRS had made significant progress through the integration of technology, improved processes, and capacity building for its workforce.

He said these advancements have not only enhanced tax compliance but have also positioned the service to meet its ambitious target of 18 per cent tax-to-GDP ratio by 2026.

“This collaboration, particularly with key stakeholders like yourselves, is critical to our success in achieving this goal.

Let us use this workshop as an opportunity to reaffirm our commitment to these shared objectives. Personally, I believe by working together, we can create a more efficient, transparent, and effective tax administration system that supports the economic growth of our great nation,” he said.