FIRS warns against politicising Nigeria’s tax collection system
The Federal Inland Revenue Service (FIRS) has strongly rejected fresh accusations surrounding the alleged appointment of Xpress Payments as a centralised revenue collection channel for the Federal Government, describing the claims as misleading, inaccurate, and a dangerous attempt to politicise what is purely an administrative and regulatory process.
The clarification came on Sunday through an official statement signed by Arabinrin Aderonke Atoyebi, Technical Assistant on Broadcast Media to the Executive Chairman of FIRS.
The statement was issued in response to comments by former Vice President Atiku Abubakar, whose remarks suggested that a single private company was being granted preferential control over government revenue inflows.
According to the FIRS, such allegations are not only unfounded but pose a significant risk to public trust in ongoing fiscal reforms.
Multi-channel collection, not monopoly
In its detailed rebuttal, the FIRS emphasised that it does not operate a single-gateway or exclusive collection platform for national tax administration.
Instead, the service maintains a multi-channel, multi–Payment Solution Service Provider (PSSP) framework, which it described as the backbone of its innovation-driven approach to tax collection.
The agency named several long-established and widely trusted PSSPs currently in operation, including Quickteller, Remita, Etranzact, Flutterwave, and XpressPay.
According to the statement, the inclusion of these platforms ensures that taxpayers across Nigeria can access modern, convenient, and secure channels for meeting their obligations.
The FIRS stressed that the presence of multiple PSSPs undermines claims of any monopoly or preferential concession.
It said the expanded system reflects a deliberate strategy to simplify payments, reduce bottlenecks, and improve transparency in the flow of funds into the Federation Account.
PSSPs are not revenue collectors, FIRS insists
FIRS also clarified widespread misconceptions about the role of PSSPs in the national tax ecosystem.
Unlike collection agents who retain a portion of funds or earn commissions, PSSPs do not receive processing fees or share of government revenues, the agency said.
“All government revenues collected through these channels are remitted directly into the Federation Account without intermediary custody, diversion, or private control,” the statement added.
This clarification, according to the FIRS, is particularly important to dispel false claims surrounding revenue leakage or undue influence by private organisations.
The service noted that the architecture of its payment system is designed to prevent the very concerns being raised in the political discourse.
A transparent onboarding process
The FIRS further highlighted that the onboarding of payment platforms follows a rigorous, transparent, and verifiable procedure.
The assessment and approval process ensures fairness and compliance with Nigeria’s regulatory framework for electronic financial services.
This framework, the agency said, supports competition, stimulates innovation within the country’s fintech space, and promotes job creation—factors that have been key indicators of the evolving digital economy.
By distributing access and responsibilities across several licensed providers, the system not only strengthens efficiency but also mitigates operational risk and enhances oversight.
The FIRS said this multi-layered approach aligns with global standards for tax administration in modern economies.
Reforms grounded in national economic objectives
The agency also addressed broader concerns about Nigeria’s ongoing tax reforms.
According to the statement, the current wave of reforms—championed by the Presidential Committee on Fiscal Policy and Tax Reforms—represents a strategic effort to modernise the country’s fiscal architecture, deepen compliance, reduce inefficiencies, and expand the revenue base.
“These reforms are grounded in transparency, accountability, and national economic development,” the FIRS said, adding that they should not be dragged into partisan controversies capable of eroding public confidence.
The agency maintained that the transformation of Nigeria’s tax system requires cooperation among stakeholders, including political actors, and warned against attempts to distort facts for political advantage.
A call for responsible public engagement
In its concluding remarks, the FIRS urged public figures, commentators, and political leaders to exercise restraint and avoid misrepresenting routine administrative decisions.
It said that Nigeria’s tax administration ecosystem is too critical to be subjected to misinformation, stressing that politicising technical processes could undermine the country’s revenue performance at a time when fiscal discipline is paramount.
The agency reiterated that the allegations circulating online and in political circles do not reflect operational realities. It assured taxpayers and stakeholders that it remains committed to transparency, fairness, and institutional integrity.
Stakeholder reactions and broader implications
While the FIRS’s defence has brought clarity to the immediate controversy, the development has revived conversations about the sensitivity of Nigeria’s revenue collection system, especially in the context of dwindling oil earnings and growing dependence on non-oil taxes.
Fiscal policy analysts noted that the debate underscores the need for accurate information dissemination, particularly in areas involving national revenue flows, digital infrastructure, and regulatory oversight.
Some also argued that the dispute demonstrates the importance of keeping political rhetoric separate from institutional operations.
For many Nigerians, the reassurance from the FIRS may help improve confidence in the government’s financial processes.
However, experts warn that persistent misinformation or politicisation of administrative reforms could derail progress, especially at a time when Nigeria is pursuing aggressive tax modernisation.
As Nigeria continues its push to strengthen tax compliance, expand digital payment platforms, and enhance revenue generation, the FIRS said it will maintain its commitment to innovation and accountability.
The agency reaffirmed that national tax administration is a shared responsibility—one that must be shielded from political distortions to safeguard the integrity of public finance.
