By Adedapo Adesanya
As part of the first order of business, the Acting Chairman of the Federal Inland Revenue Service (FIRS), Mr Zacch Adedeji, has set a target of a tax-to-GDP ratio of 18 per cent within the next three years.
Nigeria currently has a tax-to-GDP of 10.8 per cent and President Bola Tinubu has vowed to boost this above African peers like Cote d’Ivoire, Cameroon, and Senegal among others, who have between 15 per cent and 16 per cent.
Speaking on Monday when he officially took over from his predecessor, Mr Muhammad Nami, the new FIRS chief said, “By doing so, we aim to reduce our nation’s reliance on borrowing and ensure financial sustainability.”
The goal is to surpass Africa’s average tax-to-GDP ratio of 16.5 per cent which he believes would reduce the country’s reliance on borrowing and ensure financial sustainability.
In addition, the FIRS boss promised to go after tax defaulters as the country pushes for more revenue for the government.
Last week, President Tinubu appointed Mr Adedeji, an Oyo native, who held a role as his Special Adviser as the new Chairman of the tax collection agency.
In a statement issued last Thursday by the Special Adviser to the President, Mr Ajuri Ngelale, it was disclosed that the erstwhile FIRS Chairman, Mr Nami, had been directed to proceed on three months of pre-retirement leave.
The directive, Mr Ngelale stated, was in line with the provisions of Public Service Rule (PSR) 120243.
“The President has directed the erstwhile FIRS Chairman, Mr Muhammad Nami, to proceed on 3 months of pre-retirement leave, as provisioned by Public Service Rule (PSR) 120243, with immediate effect, leading to his eventual retirement from service on December 8, 2023,” a part of the statement read.
Modupe Gbadeyanka