In a bid to bolster its revenue base and reduce reliance on borrowing, the Nigerian government plans to increase the tax-to-GDP ratio to 18% within the next three years. This ambitious goal will be achieved by strictly enforcing compliance with existing tax laws, allaying concerns about the introduction of new or additional taxes.
Speaking at the Commerce and Industry Correspondents Association of Nigeria (CICAN) Annual Workshop/Awards, themed “Effects of Federal Tax Reform on Economy,” Federal Inland Revenue Service (FIRS) Chairman Dr. Zacch Adedeji emphasized the importance of taxation as the lifeblood of any economy. He underscored its role in providing the necessary funding for government to execute its functions and implement policies that foster growth and development.
“It is therefore imperative that our tax policy reforms are effective, fair, and encourage investment and innovation,” Adedeji stated. He acknowledged Nigeria’s recognition of the need for tax policy reforms to address the challenges faced by businesses and create an enabling environment for economic growth.
Adedeji’s message was delivered by Director/Coordinator FIRS Lagos Island, Mrs. Fadekemi Oyeniyi, who further emphasized the government’s commitment to creating a tax system that is both efficient and equitable. She assured taxpayers that the focus would be on ensuring compliance with existing laws rather than introducing new or additional burdens.
The government’s efforts to enhance tax compliance are expected to boost revenue generation, enabling it to invest in critical infrastructure, social programs, and economic development initiatives. This, in turn, is anticipated to stimulate economic growth and improve the lives of Nigerian citizens.
