FIRS decries revenue loss, blames MDAs for non-compliance

The Federal Inland Revenue Service (FIRS) has raised concerns over the persistent loss of revenue to the federation account, attributing it to the negligence of Ministries, Departments, and Agencies (MDAs) in remitting Withholding Tax, Value Added Tax (VAT), and Stamp Duty.

Speaking at a stakeholder engagement meeting jointly organized by the FIRS and the Office of the Accountant-General of the Federation (OAGF), Executive Chairman of FIRS, Zacch Adedeji, expressed dismay over the non-compliance of government institutions with tax remittance obligations, despite the availability of advanced technological platforms.

“Despite the technological advances we’ve made, particularly with GIFMIS and our TaxPro MAX platform, we continue to observe lapses in withholding tax deductions, VAT remittances, and stamp duty administration from the MDA space,” Adedeji stated.

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According to him, these gaps—often caused by technical challenges and a lack of awareness—have led to substantial revenue losses and recurring audit discrepancies.

“When government institutions are tax-compliant, the message it sends to the private sector and to citizens is powerful: that no one is above the law, and that transparency begins at home,” he added.

Adedeji stressed that public institutions must lead by example in tax compliance if Nigeria is to achieve its national development goals. He called for increased collaboration and awareness among stakeholders to improve tax administration across the board.

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In his remarks, the Accountant-General of the Federation, Babatunde Ogunjimi, underscored the urgency of enhancing tax compliance nationwide. He described the situation as a national priority, noting that improved collaboration among MDAs is essential to optimizing revenue collection.

“There is a pressing need to optimize tax collection, which can only be achieved when MDAs work together in synergy,” Ogunjimi said.
The event, themed “Enhancing Tax Compliance through Collaboration”, brought together key stakeholders to deliberate on strategies for strengthening tax administration.

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