"Revenue generation and infrastructure development are crucial to overcoming the challenges of a constrained economy."
The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has called on the Nigerian government to adopt transparent, efficient, and inclusive strategies to address the country's economic challenges and unlock its full growth potential.
Speaking at the 2nd Annual Lecture of NPO Reports on Tuesday, Mr Adedeji underscored the need for effective revenue generation and infrastructure development in overcoming the constraints facing Nigeria's economy.
He emphasised that the government could achieve significant economic growth by adopting transparent policies that foster innovation, enhance public services, and improve governance.
"Revenue generation and infrastructure development are crucial to overcoming the challenges of a constrained economy. By adopting transparent, inclusive, and efficient strategies, the government can unlock the economic potential, foster innovation, and improve public services. The collaboration between the public and private sectors, supported by sustainable practices and innovative technologies, will pave the way for resilient and equitable growth.
"Improving tax administration and implementing a fair, efficient and transparent tax system can reduce corruption, foster economic growth and increase investment. Streamlining tax processes reduces complexity, boosts compliance, enhances tax collection efficiency and ensures equitable contributions from all sectors," he said.
Represented by the Director of Inter-governmental Affairs of FIRS, Umar Ahmed, Mr Adedeji outlined a series of key recommendations aimed at improving Nigeria's economic prospects.
He emphasised the importance of diversifying revenue streams by exploring new sources such as tourism, agriculture, technology, and natural resource extraction. These sectors, he noted, could broaden the economic base and reduce reliance on traditional revenue sources, while contributing to greater investment and higher exports.
Public-private partnerships (PPPs), according to Mr Adedeji, are vital in addressing funding constraints and offering innovative solutions for public service and infrastructure development.
He pointed to initiatives like the Road Infrastructure Tax Credit Scheme, introduced in 2019, which allows the private sector to invest in key infrastructure projects through incentives such as tax credits.
"A case in point is the Road Infrastructure Tax Credit (RITC) Scheme, which the Buhari administration introduced in 2019. The scheme is a public-private partnership intervention that enabled the Federal Government of Nigeria to leverage private sector capital and efficiency for the construction. Refurbishment and maintenance of critical road infrastructure in key economic areas in Nigeria. Participants in the scheme are entitled to tax credits against their future Companies' Income Tax. The scheme entitled participants to utilize the project cost incurred in the construction or repair of eligible roads as a credit against CIT payable," he said.
Mr Adedeji also stressed the importance of optimising public assets, such as land and property, to generate revenue through leasing, sales, or better utilisation of underused resources.
He advocated for the adoption of digital technologies to enhance transparency, improve revenue collection efficiency, and reduce corruption, thereby creating a more robust and sustainable fiscal environment.
On VAT, Mr Adedeji suggested adjusting rates or broadening the tax base to include more goods and services as a way to ensure sustainable revenue growth and minimise tax evasion.
He further called for the transparent and competitive privatisation of select state-owned enterprises, noting that such initiatives could improve operational efficiency and generate significant fiscal returns.
The FIRS boss highlighted the importance of fostering a business-friendly environment, supported by incentives, tax breaks, and infrastructure, which could attract private investment and stimulate economic growth. He also recommended fiscal discipline through cost-cutting measures, streamlined processes, and waste reduction to strengthen financial stability.
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In his welcome address, the Publisher of NPO Reports, Semiu Okanlawon, highlighted the pressing dilemma Nigeria faces in trying to raise revenue from an already economically strained population.
He noted that while the government is determined to change the course, the challenge remains in how to tax citizens who are already struggling to meet basic needs.
"You have a government that is determined to change the course, but where is the money coming from? How do you tax already overburdened citizens who are cornered by economic realities? How do you continue to tax them to raise revenue for a better quality of life? It is a big dilemma. This is the dilemma we expect our speakers here today to help us solve," he said.
