On September 18, 2025, Zacch Adedeji, Ph.D., marks two years as the Executive Chairman of the Federal Inland Revenue Service (FIRS). His appointment came at a pivotal moment when Nigeria urgently required increased revenue to fund development projects, fulfilling the high expectations Nigerians placed on President Bola Tinubu’s administration through their electoral support.
Just four months into his tenure, during the January 2024 management retreat, Adedeji unveiled a strategic vision aimed at overhauling the agency’s operations. His focus was clear: to eliminate barriers for taxpayers and boost revenue collection by reshaping the agency’s culture to be more taxpayer-focused. This approach followed an impressive 107 percent achievement of the 2023 revenue target, with FIRS collecting N12.37 trillion against a goal of N11.56 trillion. The momentum continued into 2024, with collections reaching N21.7 trillion, surpassing the N19.4 trillion target. For 2025, the agency aims to collect N25.2 trillion and current data suggests it is well on course to exceed this benchmark once again.
These remarkable outcomes stem from a series of innovative initiatives introduced by Adedeji since assuming leadership. In a move that boosted staff morale significantly, he announced a 60 percent salary increase for FIRS employees in April 2024, following consultations with management. This unprecedented gesture was met with widespread enthusiasm from employees and union representatives alike, reflecting Adedeji’s commitment to improving worker welfare. Alongside salary enhancements, other employee benefits have been systematically addressed, resulting in heightened productivity across the agency.
Demonstrating a commitment to customer service and simplifying tax processes, FIRS launched the USSD code *829# to facilitate taxpayer access to services via mobile phones without internet dependency. This innovation complements upgrades to the TaxProMax platform, enhancing the overall tax administration experience. Additionally, the agency rolled out the Merchant-Buyer solution, known as e-invoicing, targeting large taxpayers with annual turnovers exceeding N5 billion. Within just two weeks of its introduction, over 1,000 of the eligible 5,000 firms had registered, signaling strong adoption.
Addressing revenue leakages caused by illicit financial flows (IFFs), FIRS recently convened a two-day conference focused on curbing these losses. Nigeria reportedly loses $18 billion annually due to profit shifting and aggressive tax avoidance by multinational corporations operating within its borders. The event, organized by FIRS’s Proceeds of Crime Management and Illicit Financial Flows Coordinating Directorate (POCM-IFF), explored strategies to enhance compliance, improve transparency of beneficial ownership, and leverage technology to detect tax evasion, trade mispricing, and other illicit financial activities.
Complementing these efforts is the National Single Window (NSW) project, housed within FIRS, designed to streamline import and export procedures. Lengthy bureaucratic delays at ports have historically deterred foreign direct investment. The NSW initiative aims to eliminate these bottlenecks, with full implementation expected by mid-2026. This system will not only facilitate trade but also optimize revenue collection and improve the ease of doing business in Nigeria.
Beyond his core responsibilities at FIRS, Adedeji has taken on additional roles, including chairing the Federal Executive Council’s sub-committee on the Domestic Sale of Crude Oil and Refined Products in Naira. This committee’s mandate is to ensure stable supply and maximize the use of local refining capacity by maintaining crude oil sales in naira for domestic refining. The positive impact is evident: fuel shortages have diminished, queues at petrol stations have disappeared, and prices are stabilizing for the first time in years, with petrol costs gradually declining.
Perhaps the most demanding challenge Adedeji has faced is spearheading comprehensive tax reform. The four new tax bills underwent rigorous scrutiny and public debate. These reforms represent a transformative shift toward equitable taxation and economic revitalization. For the first time, low-income earners, small enterprises, and renters benefit from explicit relief measures embedded in statutory thresholds and progressive tax rates. Starting next year, individuals earning ₦800,000 or less annually will be exempt from personal income tax, effectively removing payroll tax burdens from the majority of wage earners. This exemption significantly increases disposable income for low-income Nigerians, enabling them to better meet everyday expenses.
Adedeji consistently echoes President Bola Ahmed Tinubu’s philosophy that FIRS should “tax the fruits, not the seeds,” emphasizing support for business growth rather than imposing additional tax burdens. Early in his tenure, he reassured corporate stakeholders that efforts to raise the country’s tax-to-GDP ratio from 10.86 percent to 18 percent would not translate into higher taxes or new levies. Instead, the administration is committed to fostering a business-friendly environment. Furthermore, FIRS has allocated a portion of its revenue targets to support the Nigerian Education Loan Fund (NELFUND), demonstrating its dedication to social development.
Given the substantial progress achieved under Adedeji’s leadership in just two years, the outlook for the next term is promising. Enhanced efficiency in tax administration is expected to yield even greater benefits for businesses and the federation as a whole. These accomplishments have been facilitated by President Tinubu’s economic reforms, including the removal of petrol subsidies and the unification of exchange rates, which have strengthened fiscal fundamentals. As a result, federal, state, and local governments enjoy increased monthly revenue distributions, with tax collections accounting for approximately 70 percent of shared funds.
~ Akinola, Technical Assistant to the Executive Chairman of the Federal Inland Revenue Service (FIRS), reports from Abuja.
