As Northern Elders Forum, African Democratic Congress demand termination
The Federal Inland Revenue Service (FIRS) has dispelled widespread fears over a Memorandum of Understanding (MoU) signed with France's Direction Générale des Finances Publiques (DGFiP), insisting the agreement grants no access to Nigerian taxpayers' data and poses zero risk to national sovereignty.
This comes amid widespread criticism of the MoU, with the Northern Elders Forum (NEF) and the African Democratic Congress (ADC) demanding its immediate termination to safeguard the country's data sovereignty.
In a statement released on Sunday addressing "recent online commentary, particularly a letter credited to the Northern Elders Forum (NEF)", the FIRS described the MoU as a standard, globally recognised cooperation framework focused solely on technical assistance and capacity building.
Follow us on WhatsApp | LinkedIn for the latest headlines
The agency stressed that the partnership does not grant France access to Nigerian taxpayers' data, digital systems, or any element of its operational infrastructure.
FIRS reiterated that "all existing Nigerian laws on data protection, cybersecurity and sovereignty remain fully applicable and strictly enforced", adding that the Nigeria Revenue Service (NRS), set to replace FIRS, "places the highest premium on national security and maintains rigorous standards for the protection of all taxpayers' information".
According to the FIRS, similar MoUs are signed by tax administrations around the world to promote collaboration, knowledge exchange and the adoption of global best practices.
"The DGFiP is among the world's most advanced tax authorities, with over a century of institutional experience and deep expertise in digital transformation, taxpayer services, governance and public finance.
"This partnership simply enables Nigeria to learn from that experience. It is advisory, non-intrusive and entirely under Nigeria's control.
"Contrary to misconceptions, the MoU does not displace local technology providers. FIRS and the emerging Nigeria Revenue Service (NRS) continue to work closely with Nigerian innovators such as NIBSS, Interswitch, Paystack and Flutterwave," the tax body clarified.
Stressing further, the FIRS said: "The MoU does not include the provision of technical services; it is limited to knowledge sharing, institutional strengthening, workforce development, policy support and best-practice guidance.
"We welcome robust public engagement on tax reforms, but such conversations must reflect the actual content and purpose of the agreement."
It noted that, rather than undermining Nigeria's sovereignty, the MoU strengthens it by helping to build a modern, capable and globally competitive tax administration firmly in command of its systems, data and strategic direction.
The controversy erupted following the signing of the MoU, which critics have labelled a "dangerous tax data agreement" that could expose Nigeria's sensitive economic information to foreign control.
Condemning the partnership, the African Democratic Congress (ADC) said the recent digital tax agreement between Nigeria and France endangers Nigeria's data security.
The opposition party said that while it supports efforts to modernise the country's tax system, the process by which the deal was reached raises serious questions about transparency, national sovereignty and the protection of Nigerians' data.
The national publicity secretary of the ADC, Mallam Bolaji Abdullahi, said the party is calling for full public disclosure of the details of the agreement or its immediate termination.
In a statement, the ADC spokesman said the party had carefully reviewed expert opinions on the recent agreement on digital tax reform and revenue administration signed by the Federal Inland Revenue Service (FIRS), on behalf of the Bola Ahmed Tinubu administration, with the Government of France.
"Quite significantly, we note the overwhelming concern that the agreement potentially endangers Nigeria's data security and exposes strategic national economic information to foreign exploitation.
"Attempts by the FIRS to explain these concerns away have failed to convince anyone that the agreement was done in the nation's best interest, especially given the manner in which it was hurriedly and secretly packaged."
Stressing that tax matters are about business, not charity, the ADC said that in entering into such a business agreement, the FIRS must disclose what Nigeria stands to gain.
The opposition party added that the Federal Government has failed to tell Nigerians what France stands to benefit from the deal.
"Why did the Federal Government of Nigeria enter into a serious agreement such as this, which potentially infringes on national security and sovereignty, without public disclosure of its full terms, without open engagement with the National Assembly, and without any meaningful effort to carry Nigerians along?
"More fundamentally, we cannot ignore the broader political context of this agreement. Across West Africa, France's role and influence are being openly questioned. Former French colonies are loosening or severing their neo-colonial ties with the country. Yet, under the Bola Tinubu administration, Nigeria appears to have become more Francophone than the French.
"Nigeria's local content policy was designed to encourage the development of national human capital and to reduce capital flight by promoting domestic industries, especially in the provision of services. With the plethora of competent and globally acclaimed national service providers in this sector, why does President Tinubu prefer to promote his French connection rather than local capacities?
"These tax reforms should provide opportunities to strengthen national institutions and build local capacity, not to create new dependencies or hand over strategic control of our economic intelligence to external actors."
Meanwhile, the NEF, in an open letter signed by its spokesperson, Prof. Abubakar Jika Jiddere, and addressed to the Federal Government, the Senate and the House of Representatives, warned that the deal represents "a direct, unprotected gateway that could expose Nigeria's most sensitive economic information to foreign control".
According to the letter: "The Northern Elders Forum writes today with grave concern and an overwhelming sense of patriotic duty. Nigeria stands at a crossroads, one that threatens the very pillars of our economic sovereignty, national security and collective dignity as an independent African nation.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"Yesterday's signing of a Memorandum of Understanding (MoU) between the Federal Inland Revenue Service (FIRS) and the French tax authority, Direction Générale des Finances Publiques (DGFiP), is not a harmless technical collaboration.
"It is a direct, unprotected gateway into the heart of Nigeria's tax infrastructure, placing our most sensitive economic data into the hands of a foreign power whose engagements across Africa have historically led to economic manipulation, political pressure and strategic domination."
The NEF said granting a foreign government access to Nigeria's tax data undermines the country's economic independence and places its fiscal future at risk.
The elders warned that France's historical engagements in Africa have often resulted in economic manipulation, political pressure and long-term dependency, urging Nigeria not to repeat what they described as past mistakes made by other African nations.
Jiddere added: "Wherever its influence has settled, African countries have fought for decades to reclaim economic independence. Several nations, after long periods of economic sabotage, extractive policies and political interference, pushed France out of their internal systems because they realised too late the price of dependency.
"Nigeria must not walk into the same trap with open eyes. With insecurity ravaging our communities, with the naira under pressure, with unemployment high and with foreign interests circling Nigeria's digital infrastructure, this is not the time to mortgage our national pride or hand over our economic soul to any foreign state."
