The Federal Inland Revenue Service (FIRS) has called on the Accountant-General of the Federation (AGF), Mr. Shamseldeen Ogunjimi, to urgently address lapses in withholding tax deductions and remittances by Ministries, Departments, and Agencies (MDAs) to plug revenue leakages and strengthen Nigeria’s fiscal sustainability.
FIRS Executive Chairman, Dr. Zacch Adedeji, made this charge at a two-day workshop in Abuja themed “Enhancing Tax Compliance Through Collaboration”, aimed at improving inter-agency coordination to achieve efficient tax administration.
Adedeji stressed that MDAs play a critical role in ensuring tax compliance, particularly given their central position in government financial transactions. However, he noted that despite advancements in tax administration technologies, including the Government Integrated Financial Management Information System (GIFMIS) and FIRS’ TaxPro MAX platform, gaps persist in withholding tax deductions, Value Added Tax (VAT) remittances, and stamp duty administration.
“These lapses—often due to technical limitations and insufficient understanding of tax compliance requirements—have caused significant revenue losses and recurrent audit issues,” Adedeji said.
He emphasized that the credibility of public institutions depends on their adherence to tax regulations, adding that government agencies must lead by example to build public trust in the tax system.
“When government institutions are tax-compliant, the message to the private sector is clear: no one is above the law. Transparency begins at home,” he asserted.
Adedeji maintained that addressing these lapses would enable the government to increase revenue and meet national development priorities.
Responding, AGF Shamseldeen Ogunjimi acknowledged that taxation remains the lifeblood of any economy, stressing that Nigeria’s economic growth depends on a robust tax system.
“With the right collaboration between the Office of the Accountant-General of the Federation and FIRS, we can strengthen revenue collection, support good governance, and deliver on national development goals,” Ogunjimi said.
He pledged to work closely with FIRS to ensure that MDAs adopt stricter compliance measures, describing the workshop as a “strategic platform to co-design solutions for sustainable tax administration.”
Tax experts at the event also stressed the need for consistent enforcement, taxpayer education, and real-time monitoring of MDA transactions to prevent revenue leakages. According to them, public sector tax compliance will not only boost government revenue but also encourage private sector businesses to comply with tax obligations.
In recent years, Nigeria has intensified efforts to widen its tax net, with FIRS leveraging digital platforms to track transactions and automate tax collection. However, experts say public sector inefficiencies remain a major bottleneck to achieving optimal revenue performance.
Adedeji assured participants that FIRS would continue to invest in technology-driven tax solutions, training for MDA officials, and closer collaboration with relevant agencies to close compliance gaps.
“The journey to a smarter, more efficient tax system starts with us in government. We must play by the rules and help others do the same,” he said.