TAX SERVICES

Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), has approved weekend operations for tax offices across the country throughout June. The directive, announced in a statement by Dare Adekanmbi, Special Adviser on Media to the Chairman, underscores Adedeji’s commitment to delivering a customer-focused tax administration. According to the statement, tax offices will now open from 10:00 a.m. to 4:00 p.m. on Saturdays, and from 12:00 p.m. to 4:00 p.m. on Sundays. The weekend schedule, which began on June 14 and ends on June 29, is aimed at helping companies meet the June 30 deadline for filing their annual Companies Income Tax (CIT) returns. Coordinating directors overseeing the Large Taxpayers Group, Government and Medium Taxpayers Group, and Emerging Taxpayers Group have communicated the directive to all tax offices to ensure effective implementation. “June marks the peak of the CIT filing season, especially for businesses whose financial year ends on December 31,” the statement noted. Since assuming office, Adedeji has led reforms to streamline tax processes and improve service delivery, transforming the FIRS into a more responsive, service-driven institution. 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.

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.

Aliko Dangote, President of the Dangote Group, recently informed President Bola Ahmed Tinubu that his conglomerate contributed a staggering N450 billion in taxes to the federal government in 2024—making it the highest tax-paying corporate entity in Nigeria. Remarkably, this amount surpasses the total tax contributions of all the country’s banks combined. Despite this substantial payment, Dangote affirmed the group’s continued commitment to national development, pledging an additional N900 billion investment in road infrastructure projects across Nigeria. One of the flagship projects under this initiative is the Deep Sea Port Access Road, being constructed through the federal government’s tax credit scheme. Dangote noted that the road is part of a broader infrastructure plan comprising eight major projects totaling 500 kilometers. This includes two roads in Borno State, which will eventually connect Nigeria to neighboring Chad and Cameroon. Commending President Tinubu’s leadership, Dangote described him as a courageous reformer whose administration has reignited investor confidence in the private sector. He also expressed gratitude for the president’s vision behind transformative projects like the Lekki Deep Sea Port. In a symbolic gesture, Dangote announced that the main access road to the cutting-edge Dangote Petroleum Refinery & Petrochemicals complex will be named Bola Ahmed Tinubu Road in honor of the president. “The Dangote refinery complex is, in many ways, your brainchild,” Dangote said, addressing President Tinubu. “Mr. President, let me just say one thing — the main road leading into our refinery is now to be known as Bola Ahmed Tinubu Road.” Following the announcement, President Tinubu stood up to shake hands with Dangote, drawing a round of applause from the dignitaries present. 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.

In a strategic move aimed at enhancing revenue generation and strengthening tax administration, the Executive Governor of Imo State, His Excellency, Distinguished Senator Hope Uzodimma, has secured a landmark collaboration between the Federal Inland Revenue Service (FIRS) and the Imo State Government through the Imo State Internal Revenue Service (IIRS). This collaboration will see both agencies conduct joint tax audit exercises across Imo State. The initiative, in alignment with Governor Uzodimma’s “3R” mandate—Reconstruction, Rehabilitation, and Recovery—is designed to promote transparency, reduce revenue leakages, and improve voluntary tax compliance among individuals and corporate bodies in the state. The Joint Tax Audit framework has been formally approved by the Executive Chairman of FIRS, Dr. Zacch Adedeji, via a letter transmitted through the office of the Coordinating Director, Emerging Taxpayers Group. The Imo State Government, through the Executive Chairman of IIRS, Mr. Justice Okoye (FCA), expressed deep appreciation to Dr. Adedeji for his visionary leadership and for fostering inter-agency cooperation that benefits the broader Nigerian tax system. Commendations were also extended to Mr. Kabir Abba, Coordinating Director of the Emerging Taxpayer Group, and Mr. Olugbenga Daniel, Director of the Emerging Taxpayers Department – South, for their vital roles in facilitating and rolling out the joint audit program in Imo State. This joint effort between FIRS and IIRS represents a proactive step toward building a more effective and unified tax administration. By eliminating audit overlaps, improving data accuracy, and streamlining tax processes, the collaboration is expected to yield significant benefits for both tax authorities and taxpayers. More importantly, it will contribute to creating a fair and efficient tax assessment environment. Governor Uzodimma’s administration has consistently emphasized fiscal discipline and improved internally generated revenue as cornerstones of its broader economic reform agenda. By leveraging the expertise and framework of FIRS, the state aims to cultivate a stronger tax culture that supports sustainable development initiatives and provides the necessary funding for key infrastructure and social programs. Taxpayers across Imo State are encouraged to cooperate fully with audit teams and take advantage of this opportunity to regularize their tax records. The Imo State Internal Revenue Service remains committed to effective tax governance and will continue to pursue reform-driven partnerships that boost performance and transparency in revenue administration. 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 launched a National Intelligence Gathering System designed to collect data and identify tax evaders and defaulters across Nigeria. This development was announced by Mr. Abdullahi Ismaila, Director of Communications and Liaison at FIRS, in a statement issued Wednesday in Abuja. According to Ismaila, the Executive Chairman of FIRS, Mr. Muhammad Nami, disclosed the initiative during a collaborative visit to the Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Professor Bolaji Owasanoye. Nami explained that the newly introduced system aims to detect and apprehend tax evaders, ensuring they fulfill their tax obligations. The system is ICT-based and is being implemented in collaboration with the ICPC, other anti-corruption agencies, and financial institutions. He noted that the initiative is also geared toward combating financially driven crimes such as money laundering. “The ICPC is a key stakeholder in this effort. We are strengthening our collaboration to detect tax fraud and plug revenue leakages so that we can increase the funds available to government for budget implementation,” Nami said. He emphasized the importance of access to data and intelligence held by partner agencies, which would support efforts to expand the tax net and enforce compliance. Additionally, Nami stated that FIRS is undergoing a comprehensive restructuring to enhance its operational efficiency and exceed its 2020 revenue targets. 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.

On Wednesday, the President of the Senate, Godswill Akpabio, stated that the National Assembly’s decision to approve the tax reform bills submitted by President Bola Tinubu was motivated by the national interest. Through his media aide, Eseme Eyiboh, Akpabio explained that the bills were passed after thorough negotiations, extensive stakeholder consultations, and transparent deliberations that prioritized national development above partisan or regional considerations. The legislation approved includes the Joint Revenue Board (Establishment) Bill, Nigeria Revenue Service (Establishment) Bill, Nigeria Tax Administration Bill, and Nigeria Tax Bill — all key components of President Tinubu’s fiscal reform agenda under the Renewed Hope initiative. Originally presented to the National Assembly in November 2024, the bills were adopted by the Senate last week after several months of rigorous debate. “These bills form the cornerstone of the president’s economic reforms,” Akpabio said. “Once enacted, they will enhance Nigeria’s revenue collection system and reform tax administration to promote fairness and efficiency.” The legislative journey was challenging. Akpabio disclosed that early proposals, such as allowing states that generate tax revenue to retain 60% of Value Added Tax (VAT) proceeds, faced strong opposition, especially from northern lawmakers concerned about potential economic disadvantages to their region. A compromise was reached, reducing the retention rate to 30% and substituting the term “derivation” with “place of consumption,” enabling consensus. The bills also encountered resistance from some state governors and internal disagreements within the National Assembly. “There were moments of intense disagreement, even among Senate leaders,” the statement noted. “However, Senator Akpabio’s diplomacy, wisdom, and consensus-building skills were crucial in guiding the process to a positive conclusion.” The former governor of Akwa Ibom also praised his colleagues in both chambers for their support, singling out House Speaker Tajudeen Abbas for effectively rallying younger lawmakers. Additionally, governors who initially opposed the bills were commended for eventually accepting the revised terms. “Their cooperation proved pivotal,” Akpabio remarked. “By easing regional tensions and endorsing the amendments, the governors facilitated wider stakeholder acceptance.” He emphasized that the legislative process was thorough and inclusive, involving public hearings and active stakeholder engagement. The bills are now ready to be sent to the president for assent. “With two years remaining in President Tinubu’s term, this marks a significant milestone,” the Senate President concluded. “Credit is due to all who contributed to this achievement.” 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 Imo State chapter of the Peoples Democratic Party (PDP) has condemned the state’s poor showing in the recently released Value Added Tax (VAT) data for the first quarter of 2025, which ranked Imo 35th out of 36 states, describing it as evidence of a lack of effective economic policies. In a press statement, the PDP spokesperson, Lancelot Obiaku, said the latest figures confirm the party’s previous claims that Governor Hope Uzodinma’s administration has weakened the state’s economy and hindered business and commercial activities through ineffective policies, making Imo unattractive to investors. Obiaku highlighted that Imo contributed only N2.34 billion in VAT revenue to the federation account, the second-lowest among all states, narrowly ahead of Taraba State, which contributed N2.33 billion. He expressed disbelief that Imo performed worse than other Southern states, trailing far behind Anambra State, which generated N10.73 billion, and Ebonyi State, with N7.43 billion. “VAT is a consumption tax levied on goods and services at every stage of production or distribution, paid by consumers but collected by businesses and remitted to the government through the Federal Inland Revenue Service (FIRS). The VAT ratio reflects the level of economic activity and commercial vitality of states and correlates directly with productivity and economic health,” Obiaku explained. “The PDP in Imo State believes this poor performance clearly indicates the dire state of the local business environment and economy. Many businesses are closing down, and the state has failed to attract meaningful investment under Governor Uzodinma’s ineffective leadership,” the statement added. Obiaku recalled that Imo was once the leading hospitality hub in Nigeria but lamented that insecurity has forced 70% of hotels and entertainment venues to shut down. He expressed growing concern over the state government’s lack of a coherent economic plan to reverse this decline. The party further accused Governor Uzodinma of showing little commitment to improving the economy, citing his failure to reside in the state to effectively oversee governance. “How can the economy improve when the governor shows no genuine interest in the state’s development by choosing not to live in Imo? His absence has contributed to the worsening insecurity,” the statement alleged. The PDP also criticized the governor for allegedly controlling resources meant for public welfare and undermining the autonomy of ministries, agencies, parastatals, and local government funds. “The local government system has been weakened. Even the appointed LGA chairmen lack the necessary resources to make an impact because the state government controls their allocations. “Despite receiving an average of N6.5 billion monthly in LGA allocations between January and September 2024, and N8 billion monthly from September 2024 to May 2025—totaling N162 billion in the past 16 months alone—and about N350 billion in previous years, totaling over N500 billion in the last five years, Imo has no significant economy-boosting projects to show for it,” the statement said. The PDP insisted that if there were real developmental projects and a strong economic plan, businesses would be thriving, foreign investments would be flowing in, and VAT revenues would have increased. Obiaku concluded by urging the governor to urgently formulate a solid economic policy to start reviving Imo’s economy. 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 Major Energies Marketers Association of Nigeria (MEMAN) has cited low fuel taxation as a key reason Nigeria’s petrol prices remain significantly cheaper than in other West African countries. Speaking in an exclusive interview with The PUNCH on Monday, MEMAN’s Executive Secretary and CEO, Clement Isong, backed recent claims by Dangote Group President, Aliko Dangote, who stated that Nigerians pay only about 55% of what their regional neighbors pay for petrol. Isong confirmed the disparity, noting that in some West African nations, fuel prices can be up to 50% higher than in Nigeria. “Yes, in some countries, Nigerians are paying just half the cost,” he said. He attributed this to Nigeria’s relatively low fuel taxes. “Fuel taxation in Nigeria is minimal — just one percent in total, split between 0.5% for infrastructure funding and 0.5% for the NMDPRA. In other countries, fuel taxes are much higher, which drives up prices,” Isong explained. In addition to lower taxation, Isong pointed to Nigeria’s large-scale fuel consumption as a contributing factor. “We benefit from economies of scale. With a high turnover and large consumer base, the cost per litre is reduced. Nigeria’s economy is among the largest in Africa, and its energy demand is concentrated and constant. That drives prices down compared to smaller markets where demand is slower,” he said. Isong also acknowledged the impact of the Dangote Refinery, which he said has been instrumental in maintaining lower fuel prices locally. “For the past couple of months, Dangote has been the price leader, keeping petrol prices low in Nigeria,” he noted. When asked about the potential for smuggling due to Nigeria’s lower fuel prices — despite the removal of fuel subsidies — Isong said it was difficult to assess. “I can’t say for sure. Smuggling may have decreased, but whether it has stopped completely, I don’t know,” he responded. Over the weekend, Aliko Dangote addressed ECOWAS leaders during a visit to the Dangote Refinery, reinforcing his earlier statement that Nigerians are paying far less for fuel than neighboring countries. According to Dangote, petrol at his refinery currently sells for between ₦815 and ₦820 per litre, while the average price across the region is about $1 per litre — roughly ₦1,600. He stressed the broader impact of the refinery on the economy, noting how local refining has helped reduce fuel costs and supported key sectors. “When we started producing diesel last year, the price dropped from ₦1,700 to ₦1,100 almost immediately. That drop benefited multiple industries, especially agriculture and mining,” Dangote said. He also called for stronger economic integration across Africa, encouraging more trade among African nations to strengthen the continent’s economies. Despite the benefits, some fuel marketers and importers have raised concerns, saying that the Dangote Refinery’s competitive pricing has affected their profits, resulting in significant financial losses. 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.