The International Monetary Fund has announced its support for the Federal Inland Revenue Service’s ongoing reforms, commending the agency for the significant progress it has made in its core duties.
This pledge was made public by a Senior Economist at the Fiscal Affairs Department of the global body, Paulo Paz, on Wednesday at the opening of the IMF-supported Headquarters Mission at the Revenue House in Abuja.
The mission of the IMF team to Nigeria was to explore areas the organisation could further support the agency in addressing the challenges that might arise, particularly with the recently signed tax laws.
In a statement from the Special Adviser on Media to the FIRS chairman, Dare Adekanmbi, Paz said the IMF recognized the “good work that FIRS has been providing to the citizens,” under its Chairman, Zacch Adedeji.
Paz said the new tax laws will have a new impact on Nigeria.
“We want to know how we can best support you with this new challenge. Our take on the four tax laws is, first, a recognition of the very good work that FIRS has been providing to the citizens.
“You have at the same time the recognition and new responsibilities with these very powerful laws, which will increase the relevance of the tax administration in Nigeria. I want to express our honor of being here and being a partner of FIRS. Thank you for your trust in our advice. We congratulate you on the good results so far. There is more to come, and we are here to help.”
Adedeji, while welcoming the visitors, applauded the IMF for journeying with the tax body, saying that the relationship would continue when the agency transitions to the Nigeria Revenue Service next year.
Adedeji, who was represented by his Chief of Staff, Tayo Koleosho, specifically lauded IMF’s collaboration with FIRS in portfolio management and compliance programme.
“The IMF has gone on this journey with us, and I think we are in a good place to continue the journey together. We are working together in digital transformation, VAT automation, and even the compliance programme and the ability to automate some of those things. I am interested in corporate planning and the nexus of data portfolio management, so that we have our strategy dissolved into manageable tasks. It’s very important that those things are well,” he said.
In her remark, the Coordinating Director, Corporate Services Group, Mrs. Bolaji Akintola, explained that the IMF has been a critical stakeholder in FIRS’ journey towards tax system reforms targeted at improving domestic revenue mobilisation.
She said FIRS, with the support of the IMF, conducted two systemic evaluation exercises using the Tax Administration Diagnostic Assessment Tool between 2018 and 2023.
“Each of these exercises was followed by a post-TADAT mission where a reform roadmap was developed to address the systemic weaknesses that were uncovered by the assessment. The fact that the results of the 2023 TADAT showed significant improvement over those of 2018 is indicative of the commitment of the Service towards institutional excellence.
“Let me assure you that if another TADAT is conducted today, the result will be better than that of 2023 because a good number of the weak indicators from the 2023 Performance Assessment Report have been addressed and some have been codified in the four tax reform laws recently signed by President Bola Tinubu,” she said.
