FIRS, OAGF Launch Joint Initiative to Tackle MDA Tax Non-Compliance in Nigeria

By Oluwakemi Kindness,

The Federal Government has launched a renewed effort to tackle persistent tax non-compliance among its Ministries, Departments, and Agencies (MDAs), unveiling a joint initiative between the Federal Inland Revenue Service (FIRS) and the Office of the Accountant-General of the Federation (OAGF).

The move aims to close revenue leakages, enforce digital remittance, and enhance transparency in public finance.

Speaking at the opening of a two-day stakeholders’ engagement in Abuja, FIRS Executive Chairman, Dr. Zacch Adedeji, described the initiative as a shift from “mere coordination to true collaboration,” with the goal of fostering a technology-driven, fully compliant tax culture in the public sector.

“Effective tax administration does not operate in isolation. It requires deliberate cooperation, mutual understanding, and well-coordinated systems across institutions,” Adedeji said.

He noted that despite the deployment of platforms like TaxPro MAX and GIFMIS, MDAs still record lapses in VAT remittances, withholding tax deductions, and stamp duty collections—challenges he attributed to technical constraints and a lack of awareness.

“These lapses cause significant revenue losses and recurring audit red flags,” he added. “If government institutions fail to comply, what message are we sending to the private sector? Transparency must begin at home.”

Adedeji outlined a four-point action plan:

1. Strengthen institutional collaboration between FIRS and OAGF,
2. Set up escalation channels for remittance failures,
3. Embed tax compliance training for public finance officers, and
4. Improve TaxPro MAX and GIFMIS through responsive feedback loops.

In his remarks, the Accountant-General of the Federation, Shamsudeen Ogunjimi, pledged support for the initiative and emphasized the role of taxation in advancing the Renewed Hope Agenda of President Bola Ahmed Tinubu.

He reiterated the administration’s goal to grow Nigeria into a $1 trillion economy by 2030, stressing the need to reduce dependence on oil revenue.

“Taxation remains the lifeblood of our economy. Strengthening compliance and accountability is not optional—it is essential,” Ogunjimi said.

He commended the FIRS for digitizing tax administration and expanding the tax net, urging stakeholders to turn discussions into actionable reforms.

The engagement featured technical sessions on the VAT regime, withholding tax, stamp duties, and integration between FIRS and OAGF systems. It also included panel discussions on institutional reorientation and ethical reforms needed for long-term compliance.

The event follows the recent signing of the Nigeria Revenue Service (Establishment) Act 2025, which officially rebrands the FIRS as the Nigeria Revenue Service (NRS), with enhanced statutory powers and operational efficiency.

The forum is expected to end with a communique outlining key resolutions, timelines, and joint responsibilities to improve tax compliance across MDAs.

“This is not just another conference,” Adedeji said. “This is a joint mission to fix the system and secure Nigeria’s fiscal future.”