The Federal Inland Revenue Service has pointed to serious revenue losses caused by poor tax practices in government institutions. Executive Chairman of the FIRS, Zacch Adedeji, made this known during a high-level engagement with the Office of the Accountant-General of the Federation. He explained that many Ministries, Departments, and Agencies fail to properly remit withholding tax, Value Added Tax, and stamp duty. These gaps in remittance, he said, continue to deprive the federation account of billions in potential revenue.
Adedeji urged government institutions to lead by example. He said public agencies must uphold tax laws with the same discipline expected from private firms. According to him, tax compliance is not optional but essential to national development. He noted that poor tax practices in public agencies undermine the integrity of Nigeria’s entire revenue system.
He emphasized that the country relies heavily on tax revenue to fund vital services. Health care, education, roads, salaries, and national security all depend on proper tax inflows. Without full compliance from government bodies, budget execution becomes impossible. He said the situation not only disrupts fiscal planning but also erodes public confidence in tax administration.
The FIRS chairman said this pattern of tax neglect cannot continue. He warned that if MDAs fail to improve compliance, enforcement action may follow. He stressed that Nigeria cannot afford to lose revenue while facing pressing development needs. He noted that a change in mindset is urgently required across all government agencies.
Adedeji also advocated stronger collaboration between finance officers, internal auditors, and revenue officials within MDAs. He said tax officers should work closely with their counterparts in the FIRS to ensure correct deductions and remittances. According to him, this collaboration is key to reducing errors and closing revenue gaps.
He further highlighted the importance of digital tools in improving transparency and accountability. He said automation can help track transactions and enforce real-time remittance of taxes. He encouraged MDAs to adopt these technologies and train staff on proper usage. He added that digital solutions are vital for improving the nation’s tax infrastructure.
During the meeting, other participants expressed concern over continued non-compliance. Some blamed weak enforcement systems, while others cited lack of awareness and technical capacity. Adedeji acknowledged these concerns but insisted that government agencies must take responsibility. He said ignorance of the law is not an excuse.
He urged the Office of the Accountant-General to support the FIRS in enforcing full compliance. He called for joint audits, regular reconciliation of accounts, and mandatory reporting of tax transactions. According to him, this will create a culture of transparency within government institutions.
He closed by calling for urgent reform. He said every agency must understand its role in building a better revenue system. He reminded everyone that government must pay what it owes, just like any citizen or business. Nigeria’s future, he said, depends on disciplined and responsible revenue management.
