July 3, 2025

Gombe State has solidified its position as a leader in digital tax administration by securing the 4th spot nationwide in the latest assessment of digital maturity in tax management. This achievement was announced during a high-level Validation Workshop on Digital Public Infrastructure and Intelligence Revenue Authority Index Tools, organized by the Nigeria Governors’ Forum in collaboration with the Bill and Melinda Gates Foundation in Abuja. The evaluation, which assessed all 36 states and the Federal Capital Territory, highlighted Gombe’s impressive score of 80.6%. The assessment criteria included digital onboarding of taxpayers, integration with national identity and payment systems, automation of compliance monitoring, data security, advanced analytics, and the digital proficiency of personnel. Gombe’s success is attributed to the strategic leadership of Governor Muhammadu Inuwa Yahaya and the transformative efforts of the Gombe State Internal Revenue Service (GIRS), led by Executive Chairman Hajiya Aisha Adamu. Under their guidance, the state has implemented a comprehensive digital tax platform, which has streamlined tax processes, enhanced transparency, and improved taxpayer compliance. This recognition underscores the importance of digital transformation in tax administration and serves as a model for other states aiming to enhance their tax systems. 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) is gearing up to host its highly anticipated 2025 Tax Clinic, a flagship initiative dedicated to enhancing tax awareness and compliance among small businesses, startups, and operators in Nigeria’s informal sector. Organized by the Emerging Taxpayers’ Group (ETG), this two-day event will take place on Tuesday, July 15, and Wednesday, July 16, 2025, at Marcellina’s Place, located beside the Radisson Blu Hotel in Ikeja GRA, Lagos. The clinic will run daily from 8:00 AM to 5:00 PM. Under the theme “Tax Clinic for Tax Clarity,” the event aims to simplify complex tax processes and provide practical, hands-on support to new and prospective taxpayers. Attendees will have the opportunity to engage in expert presentations, panel discussions, interactive service desks, and live Q&A sessions covering essential topics such as tax filing, business registration, and dispute resolution. Dr. Zacch Adedeji, Executive Chairman of FIRS, emphasized the importance of the initiative, stating:“This Tax Clinic demonstrates our dedication to fostering voluntary compliance by bringing tax education directly to the people. It plays a vital role in building trust, transparency, and inclusiveness within Nigeria’s tax system.” Participants will also gain access to representatives from key institutions including the Lagos State Internal Revenue Service (LIRS), Joint Tax Board (JTB), Corporate Affairs Commission (CAC), Tax Appeal Tribunal (TAT), National Identity Management Commission (NIMC), Nigerian Investment Promotion Commission (NIPC), and professional bodies such as CITN, ICAN, ANAN, NBA, and NMA. In addition to tax services, the Nigerian Medical Association will provide free basic medical screenings on-site. The first 300 in-person registrants will receive complimentary branded gifts. This event is open to all, especially business owners, self-employed individuals, trade groups, and professionals. For those unable to attend physically, a live stream will be available to join virtually. 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 International Monetary Fund (IMF) has endorsed Nigeria’s choice to postpone raising the Value Added Tax (VAT) rate, citing the country’s ongoing struggles with high poverty and food insecurity. In its recent Article IV consultation report, the IMF stated that deferring the VAT hike is a reasonable approach, especially since the national cash transfer system designed to assist the most vulnerable households is not yet fully implemented. This recommendation comes as Nigerian households face rising living costs coupled with stagnant income growth—factors that could be exacerbated by new tax burdens. The IMF’s guidance aligns with Nigeria’s broader fiscal reform agenda, which aims to modernize tax collection systems and improve public finance efficiency. Despite recent progress, the Fund noted that Nigeria still maintains one of the lowest revenue-to-GDP ratios globally. New tax reform bills, developed by the Presidential Committee on Fiscal Policy and Tax Reforms and recently enacted into law, are expected to overhaul the VAT and Corporate Income Tax (CIT) systems to boost compliance and enforcement. Nigerian authorities see significant medium-term benefits from these reforms, with the IMF providing ongoing capacity development support, including the placement of a resident advisor. However, the IMF cautioned that delaying the VAT increase will result in a short-term reduction in consolidated government revenue by up to 0.5% of GDP. The federal government may offset some losses through higher corporate tax collections, but state and local governments will likely feel the impact most acutely. Without alternative revenue sources, subnational governments may need to increase their own tax collections or reduce spending, the report warns. Rather than rushing to increase VAT rates, the IMF recommends that Nigeria focus on building long-term fiscal credibility and sustainability. The Fund suggests authorities commit to a clear timeline for implementing future tax policy measures within an updated medium-term fiscal framework. Such a strategy, the IMF argues, will strengthen investor confidence, clarify available resources, and safeguard development and social protection programs for vulnerable populations. The IMF’s technical assistance continues to play a crucial role in helping Nigeria balance the urgent need for increased revenue with the imperative to protect its poorest citizens. 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.