FIRS Chair Advocates Formalisation of Nigeria’s Informal Sector for Sustainable Growth

In a compelling address at the 157th Board Meeting of the Joint Tax Board (JTB) held in Ibadan, Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), underscored the vital importance of formalising Nigeria’s vast informal sector. Highlighting that over 92.6% of the country’s employed population as of the first quarter of 2023 are operators within this segment, Adedeji emphasized that President Bola Tinubu’s administration is deeply concerned about the wellbeing of these workers.

Adedeji clarified that the President’s focus is on supporting the formalisation process through data-driven strategies, rather than imposing heavy taxes, which could stifle existing investments. He quoted President Tinubu’s analogy of “taxing the fruits and not the seeds,” advocating for policies that nurture the growth of small businesses rather than penalize them prematurely.

He called on stakeholders, including the 36 state inland revenue board chairpersons, to collaborate on harnessing reliable data to transition informal operators into the formal economy. This initiative is part of a broader plan to evolve the JTB into the Joint Revenue Board (JRB), with expanded responsibilities aimed at harmonizing and modernizing Nigeria’s tax system across all states.

Adedeji reaffirmed FIRS’s commitment to inclusive growth by supporting the informal sector, aligning with President Tinubu’s focus on empowering small-scale operators. Furthermore, Oyo State Governor Seyi Makinde echoed these sentiments, urging the government to adopt humane and strategic approaches that balance fiscal responsibility with the need to support informal workers, fostering an environment where they can thrive and contribute meaningfully to Nigeria’s economy.