N40tn Target: FG, NRS Seek Stronger Alliance On Tax Compliance

The Federal Government and the Nigeria Revenue Service (NRS) have called for stronger collaboration among federal, state and local government institutions to improve tax compliance and boost revenue generation under Nigeria’s new tax framework.

The appeal was made on Tuesday during a national workshop on strengthening tax compliance under the new tax regime, held at the Transcorp Hilton Hotel in Abuja.

The workshop, organised by the Government Business Group of the Government and Large Taxpayers’ Directorate of the NRS, brought together officials from ministries, departments and agencies (MDAs), government-owned enterprises and representatives of sub-national governments.

Speaking at the event, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the new tax regime as a major part of the Federal Government’s structural reform agenda aimed at creating a more sustainable tax-driven economy.

Represented by his Chief of Staff, Tolu Adegbie, the minister said the reforms were designed to reduce dependence on unstable oil revenues and establish a stable fiscal system capable of supporting infrastructure, healthcare, education and security.

He noted that the government was focused on implementing reforms that would strengthen public finance and improve economic stability through increased tax compliance and broader revenue generation.

Oyedele also stressed the need for transparency, accountability and cooperation among all levels of government, describing taxation as a vital component of national development.

According to him, successful implementation of the reforms would require harmonised policies, stronger institutional partnerships and improved information sharing across government agencies.

Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, said the agency faces the challenge of generating about ₦40 trillion in tax revenue this year to support allocations to the three tiers of government.

Represented by the Executive Director of Finance and Corporate Services Directorate, Muhammad Abubakar, Adedeji described the target as enormous and said achieving it would require stronger cooperation among public institutions and improved compliance by government agencies and states.

He explained that revenue mobilisation remained critical to financing developmental projects and sustaining government activities nationwide.

Adedeji added that the workshop was organised to address existing gaps in tax administration and improve awareness among MDAs and government-owned enterprises regarding their responsibilities in tax deduction and remittance.

He further disclosed that monitoring and audit activities by the NRS had uncovered major disparities in tax compliance among some states and public institutions, warning that such gaps threaten institutional fairness and fiscal stability.

As part of efforts to encourage compliance, the NRS chairman announced plans to begin recognising the country’s most tax-compliant states from 2026.

Also speaking, Executive Director of the Government and Large Taxpayer Directorate at the NRS, Mrs. Amina Ado, said the workshop was aimed at strengthening collaboration among key institutions responsible for driving Nigeria’s fiscal sustainability.

She revealed that audit exercises by the agency had exposed leakages in the deduction and remittance of Value Added Tax (VAT) and Withholding Tax (WHT), particularly among some sub-national entities.

According to her, the compliance gap was creating imbalances within the country’s fiscal system and undermining efforts to build a fair and efficient tax structure.

Ado said the NRS was committed to simplifying the implementation of the new tax laws through technology-driven and transparent remittance platforms that would encourage voluntary compliance rather than relying heavily on enforcement measures.

Participants at the workshop also emphasised the need for stronger institutional partnerships, improved transparency and sustained policy coordination among all tiers of government to support Nigeria’s revenue generation goals.

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