By Jennete Ugo Anya
Nigeria’s tax administration is drawing global applause as the Federal Inland Revenue Service (FIRS) receives high commendation from the International Monetary Fund (IMF) for its sweeping reforms, strategic transformation, and progress toward sustainable revenue mobilisation.
At the heart of this recognition is FIRS’ ambitious reform journey, which has now positioned the agency as a key pillar of President Bola Tinubu’s economic revival plan.
Speaking recently at the opening session of an IMF-supported Headquarters Mission in Abuja, Mr. Paulo Paz, Senior Economist at the IMF’s Fiscal Affairs Department, lauded the FIRS under Executive Chairman, Dr. Zach Adedeji for achieving what he described as “significant progress” in tax system transformation and citizen-focused service delivery.
“We recognise the very good work FIRS has been providing to the citizens,” Mr. Paz said. “The recently signed tax laws give FIRS increased responsibilities and relevance. The results so far have been impressive, and there is more to come – we are here to continue this journey with you.”
Reform Momentum and Strategic Vision
The IMF mission comes at a critical time for Nigeria’s fiscal landscape. With four major tax reform laws signed into effect in recent months, FIRS is preparing for its transformation into the Nigeria Revenue Service (NRS) in 2025 – an institutional upgrade that aims to consolidate progress and expand the agency’s remit.
According to Mr. Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman, the mission’s core objective is to assess how the IMF can provide additional technical support as the new tax laws are implemented. The laws are designed to improve tax compliance, transparency, and administration, aligning Nigeria’s tax system with global best practices.
Representing Dr. Adedeji at the session, the Chief of Staff, Mr. Tayo Koleosho, reaffirmed the agency’s commitment to deepening reforms, especially in areas such as digital transformation, VAT automation, data analytics, and compliance.
“IMF has walked this reform journey with us,” Mr. Koleosho said. “From strategy alignment and corporate planning to tech-led compliance, our collaboration is focused on translating national tax goals into measurable, results-driven actions.”
Measurable Progress Through Global Standards
One of the most compelling proofs of FIRS’ institutional growth came through its application of the Tax Administration Diagnostic Assessment Tool (TADAT) – a globally recognised framework used to evaluate tax systems.
Bolaji Akintola, Coordinating Director of the FIRS Corporate Services Group, explained that the agency completed two TADAT assessments, one in 2018 and a follow-up in 2023. The latter showed “significant improvements” across several performance indicators.
“Each TADAT exercise identified systemic weaknesses and helped us develop a comprehensive reform roadmap,” she said. “The results of the 2023 assessment were much better than those of 2018, and if the exercise were conducted again today, I believe we would do even better.”
She noted that many of the improvements identified have already been codified into the newly enacted tax laws, providing a stronger legislative and operational foundation for revenue generation.
IMF Partnership Strengthens Reform Pillars
Throughout the engagement, IMF officials emphasised that Nigeria’s reform journey is not only about improving tax collection but about building public trust, enhancing institutional integrity, and creating a fairer and more efficient fiscal system.
“These new tax laws will have a huge impact,” said Mr. Paz. “We want to ensure FIRS is fully equipped to manage the new responsibilities. We deeply value the trust placed in us, and we are committed to continuing our partnership.”
Dr. Adedeji echoed this sentiment, stressing that the IMF has been a strategic partner in FIRS’ transformation from a traditional tax agency into a modern driver of economic development.
“Our goal is to shift FIRS from being just a collection agency to becoming a cornerstone of inclusive national development,” he said in a prior statement.
A Blueprint for Africa
As Nigeria looks to diversify its economy away from oil and towards more stable domestic revenue streams, the FIRS-IMF collaboration is being viewed as a blueprint for tax reform across Africa. The success of this partnership is helping to enhance investor confidence, boost transparency, and reduce compliance gaps in one of the continent’s largest economies.
“The recognition we are receiving is a direct result of the Honourable Minister’s and FIRS leadership’s commitment to public trust and responsible fiscal governance,” said Akintola.
The IMF mission concluded with renewed commitments to strengthen Nigeria’s tax architecture through capacity building, diagnostics, and cutting-edge technologies. With growing support from global partners and political will at home, Nigeria’s new tax era is not just a policy shift – it is a national pivot toward economic sustainability and shared prosperity.
