The Federal Government has expressed concern over persistent revenue losses traced to lapses in tax compliance by Ministries, Departments, and Agencies (MDAs).

These lapses in tax compliance have been particularly identified in the areas of withholding tax deductions, Value Added Tax (VAT) remittances, and stamp duty administration.

Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, made this disclosure during the FIRS–Office of the Accountant-General of the Federation (OAGF) Stakeholders’ Engagement held in Abuja.

He noted that despite the deployment of sophisticated platforms like the Government Integrated Financial Management Information System (GIFMIS) and the FIRS’ own TaxPro MAX system, MDAs are still defaulting in remitting taxes as required by law.

“These gaps, many of which stem from technical constraints and a lack of understanding of tax compliance obligations, continue to result in significant revenue leakages and recurring audit findings,” Dr Adedeji said.

He stated that when public institutions comply with tax laws, it sends a strong message to the private sector and the wider public that no one is above the law.

“Our credibility as public institutions is judged first by how well we comply with tax laws ourselves. If we are serious about raising the revenue needed to meet our national development goals, then the public sector must lead by example,” he said.

The FIRS Executive Chairman pointed to the OAGF as a critical partner in reversing this trend, due to its responsibility for financial controls and disbursements across the public sector.

According to him, forging a stronger partnership between both institutions is essential to improving Nigeria’s revenue generation performance.

Dr. Adedeji described the two-day stakeholder workshop as a strategic step toward identifying and correcting systemic shortcomings in tax administration. The event provided a platform for both institutions to explore ways of improving compliance, increasing efficiency, and reinforcing the role of technology in revenue collection.

“This is more than just a knowledge-sharing session. It is a collaborative platform to co-design solutions that will close the existing gaps and promote a smarter, more technology-driven compliance culture in Nigeria,” he explained.

During the two-day session, participants from the FIRS and OAGF examined a range of issues including the FIRS 2025 Strategic Roadmap, detailed technical discussions on VAT, withholding tax, and stamp duties, and strategies for closing remittance gaps using GIFMIS. The engagement also featured panel discussions focused on institutional collaboration, system inefficiencies, and cultural reorientation needed to promote sustainable tax compliance.

One of the key highlights of the engagement was the emphasis on the TaxPro MAX platform, which supports real-time remittance tracking and enhances data reconciliation between MDAs and the FIRS. This innovation is expected to serve as a cornerstone for tightening compliance and reducing human errors and procedural oversights in tax administration.

Looking ahead, the FIRS Chairman listed several follow-up actions that will determine the success of the initiative. These include: Strengthening institutional collaboration between FIRS and OAGF; Creating structured reporting and escalation channels for lapses in tax remittances; Introducing tax compliance modules into the internal training curriculum for public finance officers; Establishing feedback systems to ensure that GIFMIS and TaxPro MAX are continuously improved to meet the needs of both institutions.

On his part, the Accountant-General of the Federation described taxation as the lifeblood of any economy and stressed that improving tax compliance in Nigeria is not merely a fiscal goal but a national necessity. He said greater use of technology, increased accountability, and a culture of transparency would go a long way in boosting compliance levels and revenue collection.

“This engagement presents a valuable opportunity to align the strategies of the FIRS and OAGF, and jointly address challenges standing in the way of optimal tax collection and remittance,” the Accountant-General stated.

He noted that the synergy between both institutions would also contribute meaningfully to President Bola Tinubu’s ambition of achieving a $1 trillion economy by 2030.

“In working together, we can build a more effective tax system that supports Nigeria’s economic ambitions and helps deliver the dividends of good governance,” he concluded.