Enhancing Fiscal Sustainability: Federal Government’s Strategy to Boost Tax Revenue through Stringent Law Enforcement.

In an effort to bolster tax revenue in Nigeria, the Federal Government is set to implement rigorous enforcement measures to ensure compliance with existing tax laws. Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), revealed the government’s ambitious plan to elevate the tax-to-Gross Domestic Product (GDP) ratio to 18 percent by 2026. Speaking at the Commerce and Industry Correspondents Association of Nigeria (CICAN) Annual Workshop/Awards, themed “Effects of Federal Tax Reform on Economy,” Adedeji addressed concerns about potential additional taxes, emphasizing that the focus is on enforcing existing laws. Representing Adedeji at the event, Mrs. Fadekemi Oyeniyi, Director/Coordinator, FIRS, Lagos Island, reiterated the Chairman’s belief that taxation serves as the lifeblood of any economy. Adedeji emphasizes that an effective and fair tax policy is crucial to provide the necessary funding for government functions and policies, fostering economic growth and development. Oyeniyi stressed the importance of tax policy reforms that encourage investment and innovation, acknowledging Nigeria’s commitment to addressing business challenges and creating an enabling environment for economic growth. Adedeji’s long-standing commitment to empowering Nigeria’s growth aligns with the agency’s audacious goal of surpassing Africa’s average tax-to-GDP ratio, aiming for an impressive 18% within the next three years. This strategic approach seeks to reduce the nation’s dependence on borrowing, ensuring financial sustainability for Nigeria’s future 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.