FIRS faults MDAs over poor tax compliance, says lapses hurting national revenue goals.
Adedeji urges agencies to lead by example, as FG pushes for stronger tax remittance practices.
The Federal Inland Revenue Service (FIRS) has blamed the continuous shortfall in funds remitted to the federation account on the failure of Ministries, Departments, and Agencies (MDAs) to fulfill their tax obligations.
Speaking at a stakeholder engagement jointly organized by the FIRS and the Office of the Accountant-General of the Federation (OAGF), the Executive Chairman of FIRS, Zacch Adedeji, said many government agencies are not complying with remittance requirements for Withholding Tax, Value Added Tax (VAT), and Stamp Duty.
Adedeji expressed disappointment over the situation, especially given that the government has introduced modern digital platforms to make the process easier and more transparent.
“Despite the technological advances we’ve made, particularly with GIFMIS and our TaxPro MAX platform, we continue to observe lapses in withholding tax deductions, VAT remittances, and stamp duty administration from the MDA space,” he said.
He pointed out that these lapses are often due to technical issues and a lack of proper understanding among staff, resulting in significant revenue losses and repeated audit problems.
The FIRS boss further emphasized the need for public institutions to set an example for the private sector by adhering strictly to tax regulations. “When government institutions are tax-compliant, the message it sends to the private sector and to citizens is powerful: that no one is above the law, and that transparency begins at home,” he added.
Adedeji urged all stakeholders to work more closely together and improve their awareness of tax responsibilities, stressing that better compliance would help the country meet its development goals.
Also speaking at the event, the Accountant-General of the Federation, Babatunde Ogunjimi, echoed Adedeji’s concerns and highlighted the importance of synergy among MDAs.
“There is a pressing need to optimize tax collection, which can only be achieved when MDAs work together in synergy,” Ogunjimi stated.
The engagement, themed “Enhancing Tax Compliance through Collaboration,” brought together top government officials and stakeholders in the finance and tax sectors to discuss practical steps for boosting tax compliance and revenue generation nationwide.
