August 19, (THEWILL) – Nigeria’s Federal Inland Revenue Service (FIRS) is drafting an executive bill to overhaul revenue administration, including regulating the cryptocurrency industry.
FIRS Chairman, Zacch Adedeji, announced this at a stakeholders’ engagement with the National Assembly’s joint committee on finance in Lagos. He said the bill aims to; simplify tax laws, harmonize revenue collection and replace obsolete tax laws with new ones reflecting current economic realities
Adedeji emphasized the need to update laws like the 1939 Stamp Duty Act, which is outdated for modern society. He also highlighted the importance of regulating the cryptocurrency ecosystem, which currently lacks governing laws in Nigeria.
Adedeji commended the collaboration between FIRS and the National Assembly, emphasizing the need for collective efforts to maximize revenue collection and support national development. He also disclosed that the FIRS is on track to achieve its 2024 revenue target of N19.4 trillion.
Senate Committee on Finance Chairman, Sani Musa, suggested that FIRS should be the regulating and collecting agency for all federal taxes. He praised the National Single Window program for addressing inefficiencies in revenue collection.
House of Representatives member, James Faleke commended Adedeji’s leadership and the collaboration between FIRS and the National Assembly. He emphasized the importance of citizens contributing to the national purse to achieve development and public welfare.
The proposed bill and stakeholders’ engagement demonstrate Nigeria’s efforts to modernize its revenue administration and address the challenges of the digital age. The FIRS had reported that the number of taxpayers in the country increased by 170,000 as the service recorded a 20% improvement in complaince rate.
The Service credited these successes to the leadership of Dr. Adedeji, noting that the rise in the number of taxpayers resulted from the emergence of more businesses, companies, and industries in the country.
The revenue agency also highlighted that the new FIRS leadership has simplified tax processes and payments nationwide, making them more convenient and reducing the costs of compliance and administration.
It noted in July that the FIRS generated N12.3 trillion in revenue in 2023, surpassing the government’s target of N11.5 trillion by 7%.
The Service also disclosed that for 2024, the government has set a target of N19.4 trillion for the FIRS. While acknowledging that this as a formidable challenge, the agency affirmed that it is achievable.
