June 13, 2025

Development expert, Michael Ale, has emphasized the need for Nigerians to prioritize tax compliance as a vital solution to the country’s persistent challenges, including underdeveloped social infrastructure, economic stagnation, and lack of meaningful development. In a Democracy Day statement released to journalists in Ado-Ekiti on Thursday, Ale urged citizens to recognize the importance of paying taxes as a civic duty, which would empower government at all levels to fulfill their responsibilities and deliver essential public services. “The payment of taxes is crucial,” Ale said. “It gives the government the capacity to provide critical infrastructure and support national growth. When citizens fulfill this obligation, they are in a stronger position to hold their representatives accountable and demand the dividends of democracy.” Ale illustrated the impact of tax compliance by citing Lagos State, where local government areas with substantial internally generated revenue have, in some cases, operated with budgets exceeding those of entire states. He argued that such progress is achievable nationwide if local councils are granted autonomy and citizens pay taxes promptly. Commending President Bola Ahmed Tinubu for removing the fuel subsidy to boost available government funds, Ale encouraged the administration to maintain its focus on citizens’ welfare and continue to create an environment that fosters growth and opportunity. “President Tinubu started his administration by ensuring sufficient funds were available through subsidy removal,” he noted. “This fiscal step has helped reduce inter-state conflicts over limited federal allocations. Governors are now more focused on managing resources and delivering good governance.” However, Ale stressed that the availability of funds alone is not enough. He called on the government to create an enabling environment where citizens, especially entrepreneurs, can operate without fear of sudden policy changes or systemic inefficiencies. “We now have more money, but has it translated into real progress for ordinary Nigerians?” he asked. “Do children enjoy affordable quality education? Are there jobs? Are social amenities improving? A government’s primary role is to create an environment where citizens can thrive—where businesses grow, education is accessible, and health and security are guaranteed.” Drawing comparisons with more developed countries, Ale noted that effective taxation and infrastructure development go hand in hand. “In developed nations, people pay taxes on virtually every utility they enjoy, and in return, governments provide consistent infrastructure, security, and opportunities,” he said. He criticized the tendency of Nigerian leaders to seek personal glorification instead of focusing on systemic governance. “In many developed countries, the system works so well that you rarely know who is in power. Here, leaders are often more prominent than the infrastructure they’re meant to deliver.” Ale praised Oyo State Governor Seyi Makinde for his focus on sustaining developmental legacies, saying other governors could learn from his example. “Governor Makinde has shown what’s possible with a strong governance vision. Sustaining progress should be the goal for every administration.” He further urged the federal government to introduce leadership training programs in schools, describing it as essential for nurturing a generation of responsible, visionary leaders. “This idea came to me in a dream,” Ale revealed. “Our youths must be equipped with leadership skills now if we want a brighter future. Good governance can solve virtually all our problems—from insecurity to economic instability. We must start preparing tomorrow’s leaders today.” In conclusion, Ale emphasized that taxation, effective governance, and youth leadership development are interconnected pillars that must be strengthened to secure Nigeria’s long-term prosperity. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The Federal Inland Revenue Service (FIRS) has introduced a new standardized tax Standard Operating Procedure (SOP), aimed at enhancing clarity, consistency, and transparency in Nigeria’s tax administration. This initiative forms part of a wider national tax reform agenda designed to streamline operations and improve public trust in the revenue system. Covering more than 300 FIRS offices across the country, the SOP is intended to resolve long-standing inconsistencies in taxpayer interactions and compliance processes. In a statement on Tuesday, Mr. Collins Omokaro, Special Adviser on Communications and Advocacy to the FIRS Executive Chairman, emphasized the need for this reform, noting that varying practices across offices had created confusion and hindered voluntary compliance. He described the SOP as a roadmap toward a more efficient and citizen-focused tax experience. The new SOP introduces a unified set of procedures for core tax activities such as registration, payment, auditing, and enforcement. By aligning these processes nationwide, FIRS aims to simplify tax compliance for individuals and businesses, making it easier to understand obligations and interact with the tax system. Dr. Zacch Adedeji, the FIRS Executive Chairman, highlighted the SOP’s deeper significance beyond technical improvements. He characterized it as a reflection of the agency’s transformation into a transparent, service-driven institution committed to national progress and operational excellence. The SOP also complements FIRS’s ongoing digital transformation, which combines human expertise with technology to deliver faster, more reliable services. The new guidelines are expected to improve internal efficiency, standardize staff training, and provide clear direction for employees across all branches. According to Omokaro, the successful implementation of the SOP relies on every staff member embracing it fully: “From today, every FIRS staff member has a mandate—study it, apply it, embody it. That’s how we’ll earn the trust of Nigerians.” By removing ambiguity and ensuring uniformity across locations, the SOP is expected to make tax administration more predictable and accessible. FIRS sees this reform as central to its evolution from an enforcement-heavy agency to a service-oriented authority, aimed at supporting economic growth and national development goals. Experts have welcomed the move as timely and crucial for fostering voluntary compliance. The SOP rollout is also a key component of FIRS’s broader modernization drive, which includes digitized tax solutions, expanded taxpayer education, and enhanced institutional accountability. As Nigeria looks to increase non-oil revenue, building a fair, efficient, and trusted tax system is essential. With the new SOP, FIRS aims to reduce administrative burdens while improving service delivery and boosting confidence in the country’s tax framework. If effectively implemented and backed by consistent enforcement and engagement with stakeholders, this development could signal a major shift in Nigeria’s tax landscape. FIRS’s commitment to transparency, uniformity, and public service positions it as a vital driver of national development. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.

The federal government is poised to forfeit $10 million from a $103 million World Bank loan under the Fiscal Governance and Institutions Project (FGIP), following inadequate audits, missed deadlines, and unmet reform targets. Although there have been some improvements in revenue generation and data transparency, key milestones remain unachieved as the June 30 deadline approaches. The $10 million in performance-based funds is being withdrawn due to several shortcomings: A June 2025 restructuring document from the World Bank reveals that Nigeria’s Ministry of Finance has formally requested the cancellation of $10.4 million. This includes: Despite exceeding its 2024 non-oil revenue target by 153%, the FGIP continues to face systemic hurdles such as weak real-time accountability, poor audit outcomes, and stalled automation reforms. The World Bank acknowledged progress in transparency and tax reforms but rated overall project monitoring as “moderately unsatisfactory.” With final disbursements estimated at $96.04 million—93% of the original loan—Nigeria risks damaging its international reform reputation unless key digital infrastructure projects like RABS are urgently accelerated. For professional advice on Accountancy, Transfer Pricing, Tax, Assurance, Outsourcing, online accounting support, Company Registration, and CAC matters, please contact Sunmola David & CO (Chartered Accountants & Tax Practitioners) at Lagos, Ogun state Nigeria offices, www.sunmoladavid.com. You can also reach us via WhatsApp at +2348038460036.