IMF Commends FIRS for Tax Reforms, Strengthening Revenue Systems

The International Monetary Fund (IMF) has acknowledged notable advancements by the Federal Inland Revenue Service (FIRS) in fulfilling its core responsibilities amid ongoing reforms.

During the IMF-supported Headquarters Mission at the Revenue House in Abuja on Wednesday, Paulo Paz, a Senior Economist from the IMF’s Fiscal Affairs Department, commended FIRS for its efforts. Paz highlighted the agency’s commendable work in serving Nigerian citizens and reaffirmed the IMF’s commitment to supporting FIRS in enhancing tax administration for national growth.

A statement from Dare Adekanmbi, the Special Adviser on Media to FIRS Chairman Zacch Adedeji, explained that the IMF’s visit aimed to explore avenues for further assistance, especially in light of the recently enacted tax laws. Adekanmbi emphasized that these new laws would introduce significant impacts on Nigeria’s revenue system, and the IMF’s support would be crucial in managing the transitions.

FIRS Chairman Adedeji, represented by his Chief of Staff Tayo Koleosho, welcomed the IMF delegation and praised the ongoing collaboration, particularly in areas such as portfolio management and compliance programs. He expressed optimism about the continued partnership as FIRS transitions into the Nigeria Revenue Service (NRS) next year, with a focus on digital transformation, VAT automation, and data-driven strategies.

Mrs. Bolaji Akintola, Coordinating Director of the Corporate Services Group, noted that the IMF’s involvement has been instrumental in FIRS’ tax reform journey aimed at boosting domestic revenue. She highlighted that between 2018 and 2023, FIRS conducted two comprehensive evaluations using the Tax Administration Diagnostic Assessment Tool (TADAT), leading to targeted reforms. The positive results from the 2023 assessment demonstrated the agency’s growing institutional strength, and she expressed confidence that subsequent evaluations would show further improvements, especially with the recent tax laws.

Overall, the IMF’s support and recognition underscore Nigeria’s progress in modernizing its tax system and improving revenue collection efforts.