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The International Monetary Fund has expressed its support for the ongoing reforms at the Federal Inland Revenue Service (FIRS), commending the agency for what it called significant advancements in its fundamental operations.
This endorsement was communicated by Paulo Paz, a Senior Economist from the Fiscal Affairs Department of the IMF, during the launch of the IMF-supported Headquarters Mission at the Revenue House in Abuja on Wednesday.
The IMF team's mission in Nigeria aimed to identify additional ways the organization could assist the agency in overcoming potential challenges, especially in light of the newly enacted tax laws.
In a statement from Dare Adekanmbi, Special Adviser on Media to the FIRS chairman, Paz noted that the IMF acknowledged the "good work that FIRS has been doing for the citizens" under Chairman Zacch Adedeji.
He stated that the new tax laws would significantly impact Nigeria. "We wish to understand how we can best assist you with this new challenge.
Our perspective on the four tax laws recognizes the excellent work FIRS has been doing for its citizens.
At the same time, you have both recognition and new responsibilities with these powerful laws, which will enhance the importance of tax administration in Nigeria. We are honored to be here and to partner with FIRS.
Thank you for trusting our guidance. We congratulate you on your commendable results thus far. There is even more ahead, and we are here to support you."
Adedeji acknowledged the visitors, praising the IMF for its partnership with the tax body and expressing optimism that this collaboration would persist as the agency transitions to the Nigeria Revenue Service next year.
Adedeji, represented by his Chief of Staff Tayo Koleosho, specifically appreciated the IMF's collaboration with FIRS in portfolio management and compliance initiatives. "The IMF has been with us throughout this journey, and I believe we are well-positioned to continue this partnership. We are collaborating on digital transformation, VAT automation, and improving compliance and automation processes.
I am particularly focused on corporate planning and the connection between data portfolio management, which will help break down our strategy into manageable tasks. It is crucial that these elements are well addressed," he remarked.
In her comments, Bolaji Akintola, the Coordinating Director for the Corporate Services Group, described the IMF as a vital stakeholder in FIRS's quest for tax system reforms aimed at enhancing domestic revenue generation.
She mentioned that FIRS, with IMF support, conducted two systemic evaluation exercises using the Tax Administration Diagnostic Assessment Tool (TADAT) between 2018 and 2023.
"Each of these evaluations was followed by a post-TADAT mission, resulting in a reform roadmap to address the systemic weaknesses identified in the assessments.
The significant improvements shown in the 2023 TADAT results compared to 2018 indicate the Service’s commitment to institutional excellence.
I assure you that if another TADAT were carried out today, the results would surpass those of 2023, as many of the weak indicators from the 2023 Performance Assessment Report have been addressed and incorporated into the four tax reform laws recently signed by President Bola Tinubu," she stated.
