Economy
FIRS, LIRS Partner to Reduce Compliance Costs for Taxpayers
By Aduragbemi Omiyale
A partnership aimed to reduce compliance costs for taxpayers in Nigeria has been entered into between the Federal Inland Revenue Service (FIRS) and the Lagos State Inland Revenue Service (LIRS).
Signing the Memorandum of Understanding (MoU) on the exchange of information and implementation of joint tax audit and investigation exercise on Monday, the Executive Chairman of LIRS, Mr Ayodele Subair, noted that the importance of the agreement was to foster greater collaboration between the two agencies.
He said though both tax agencies are not only independent of each other but different in the types of taxes they administer, the collaboration between the tax authorities was to promote the smooth operation of activities not only for the benefit of tax authorities but for improved service delivery for taxpayers.
“Notwithstanding its inclusion as a fundamental obligation of every Nigerian citizen pursuant to Section 24 (f) of the 1999 Constitution as amended, filing of annual income tax returns or payment of tax therefrom is not an issue that citizens are keen on.
“Nonetheless, citizens expect to have the direct benefit of democracy and good governance without remembering that the most reliable and sustainable means of Domestic Resource mobilization for government expenditure is taxation.
“There is no reason to debate the above as it has been established that tax compliance and good governance are expected to co-exist as the undividable social contract that binds citizens and governments anywhere in the world. Therefore, citizens and governments are expected to fulfil their end of the bargain in achieving a balance,” Mr Subair said.
He stated that, “Today’s signing of this Memorandum of Understanding is in furtherance of the above bargain on the part of the tax authorities. While this initiative of a joint audit is not a new one, it is peculiar because it comes at a time when our dear nation struggles with dwindling oil receipts and other economic woes which have affected the tax-to-GDP ratio, which is currently adjudged as the lowest globally, standing at approximately 6 per cent compared with our neighbouring countries which average between 15 per cent and 25 per cent.”
According to the LIRS Chairman, some of the expected achievements from this collaboration between both tax authorities include a reduction of compliance costs for taxpayers; improved transparency in the tax administration process, which will impact tax disputes, incidences and reconciliation; reduced administration costs for both tax authorities; and elimination of hiding place for recalcitrant taxable persons and entities.
In his remarks, the Executive Chairman of FIRS, Mr Muhammad Mamman Nami, said the essence of the collaboration between the FIRS and LIRS was to enable the two agencies to carry out joint projects together.
He also stated that in the course of its investigations, both parties would work as a team and ensure the automatic exchange of information, which would enable the agency to get more extensive data for seamless tax administration.
“We will work together as a team during the investigation and have an automatic exchange of information. With this, we will be able to carry out our mandate seamlessly. As part of the joint operation, we will be able to implement presumptive tax as far as issues of tax administration are concerned,” Mr Nami said.
Business Post gathered that the agreement signing ceremony, which took place at the Lagos State House, Marina, was witnessed by Lagos State Governor, Mr Babajide Sanwo-Olu; the Minister of State for Budget and National Planning, Mr Clement Agba; the Lagos State Commissioner for Finance, Mr Rabiu Olowo; and the Lagos State Attorney-General and Commissioner for Justice, Mr Moyosore Onigbanjo (SAN), among others.
While commenting on the development, Mr Sanwo-Olu disclosed that the conversation for the harmonisation of the two agencies’ mandates started about a year ago, based on the need to forge a common front in widening the tax net to raise the country’s tax to GDP ratio.
The Governor observed that Nigeria had maintained an unimpressive tax-to-GDP ratio of between 6 per cent and 8 per cent despite the yearly record-breaking turnovers by both FIRS and LIRS.
This, he said, has mounted pressure on the nation’s resources and created an imbalance in government expenditure, stressing that Nigeria must operate at the same level as other nations within sub-Saharan Africa, doing between 14 per cent and 15 per cent in tax to GDP ratio in order to support the government’s development programmes and improve accountability.
“We have just witnessed an epoch-making ceremony between the FIRS and the LIRS. This collaboration did not just happen by chance; it is a conversation we started about a year ago with the chairman of FIRS when both parties reviewed their successes and limitations. It was clear there was a need for a relationship to be consummated.
“Both FIRS and LIRS have been breaking records of their tax collection and administration yearly, but this is not enough. We have an unimpressive tax-to-GDP ratio, which ranges between six and eight per cent; this is totally unacceptable.
“Studies have shown that there would be better service delivery to the citizens and improvement in the efficiency of tax collection when the two agencies work together. The cost of tax collection would be reduced, we would see better customer satisfaction, and more resources would be generated for the government to deliver more dividends of democracy.
“For us as a state, we are humbled by this collaborative effort, and we believe our citizens will be the ultimate beneficiaries of this initiative. The MoU is in the best interest of the public, as it affirms the reason why we need to come together and strengthen the cordial working relationship between the two agencies,” he stated.
By Adedapo Adesanya
The Naira further weakened against the Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) for the fourth straight session this week on Thursday, February 26.
At the official market yesterday, the Nigerian Naira lost N3.71 or 0.27 per cent to trade at N1,359.82/$1 compared with the previous session’s N1,356.11/$1.
In the same vein, the local currency depreciated against the Pound Sterling in the same market window on Thursday by N8.27 to close at N1,843.23/£1 versus Wednesday’s closing price of N1,834.96/£1, and against the Euro, it crashed by N8.30 to quote at N1,606.89/€1, in contrast to the midweek’s closing price of N1,598.59/€1.
But at the GTBank forex desk, the exchange rate of the Naira to the Dollar remained unchanged at N1,367/$1, and also at the parallel market, it maintained stability at N1,365/$1.
The continuation of the decline of the Nigerian currency is attributed to a surge in foreign payments that have outpaced the available Dollars in the FX market.
In a move to address the ongoing shortfall at the official window, the Central Bank of Nigeria (CBN) intervened by selling $100 million to banks and dealers on Tuesday.
However, the FX support failed to reverse the trend, though analysts see no cause for alarm, given that the authority recently mopped up foreign currency to achieve balance and it is still within the expected trading range of N1,350 and N1,450/$1.
As for the cryptocurrency market, major tokens posted losses over the last 24 hours as traders continued to de-risk alongside equities following Nvidia’s earnings-driven pullback, with Ripple (XRP) down by 2.7 per cent to $1.40, and Dogecoin (DOGE) down by 1.6 per cent to $0.0098.
Further, Litecoin (LTC) declined by 1.3 per cent to $55.87, Ethereum (ETH) slipped by 0.9 per cent to $2,036.89, Bitcoin (BTC) tumbled by 0.7 per cent to $67,708.21, Cardano (ADA) slumped by 0.6 per cent to $0.2924, and Solana (SOL) depreciated by 0.4 per cent to $87.22, while Binance Coin (BNB) gained 0.4 per cent to sell for $629.95, with the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closing flat at $1.00 each.
By Adedapo Adesanya
Crude oil settled lower on Thursday as investors tracked developments in talks between the United States and Iran over the latter’s nuclear programme, weighing potential supply concerns if hostilities escalate.
Brent crude futures lost 10 cents or 0.14 per cent to close at $70.75 a barrel, while the US West Texas Intermediate (WTI) crude futures depreciated by 21 cents or 0.32 per cent to $65.21 a barrel.
The US and Iran held indirect talks in Geneva on Thursday over their long-running nuclear dispute to avert a conflict after US President Donald Trump ordered a military build-up in the region.
Prices had gained earlier in the session after media reports indicated the talks had stalled over US insistence on zero enrichment of uranium by Iran, as well as a demand for the delivery of all 60 per cent-enriched uranium to the US.
However, prices then retreated after the two countries extended talks into next week, reducing the immediate strike potential.
Iran’s Foreign Minister, who confirmed talks will continue next week, said Thursday’s talks were the most serious exchanges with the US yet, saying Iran clearly laid out its demand for lifting sanctions and the process for relief.
His counterpart from Oman, who is handling the talks, said significant progress was made in Thursday’s talks. The Omani minister’s upbeat assessment followed indirect talks between Iranian Foreign Minister and US envoys Steve Witkoff and Jared Kushner in Geneva, with one session in the morning and the second in the afternoon.
He will also hold talks with US Vice President JD Vance and other US officials in Washington on Friday.
The Trump administration has insisted that Iran’s ballistic missile program and its support for armed groups in the region must be part of the negotiations.
The American President said on February 19 that Iran must make a deal in 10 to 15 days, warning that “really bad things” would otherwise happen.
On Tuesday, he briefly laid out his case for a possible attack on Iran in his State of the Union speech, underlining that while he preferred a diplomatic solution, he would not allow Iran to obtain a nuclear weapon.
Meanwhile, the US continues to amass forces in the Middle Eastern region, with the military saying it is prepared to execute orders given by the US President.
Choosing a Forex broker is essentially picking a partner to hold the wallet. In 2026, the market is flooded with flashy ads promising massive leverage and “zero fees,” but most of that is just noise. Real transparency is becoming a rare commodity. It isn’t just a corporate buzzword; it’s the only way a trader can be sure they aren’t playing against a stacked deck. If a broker’s operations are a black box, the trader is flying blind, which is a guaranteed way to blow an account.
The Scam of “Zero Commissions”
The first place transparency falls apart is in the pricing. Many brokers scream about “zero commissions” to get people through the door, but they aren’t running a charity. If they aren’t charging a flat fee, they are almost certainly hiding their profit in bloated spreads or “slippage.” A trader might hit buy at one price and get filled at a significantly worse one without any explanation. This acts as a silent tax on every trade. A transparent broker doesn’t hide the bill; they provide a live, auditable breakdown of costs so the trader can actually calculate their edge.
The Conflict of Market Making
It is vital to know who is on the other side of the screen. Many brokers act as “Market Makers,” which is a polite way of saying they win when the trader loses. This creates a massive conflict of interest. There is little incentive for a broker to provide fast execution if a client’s profit hurts their own bottom line. A broker with nothing to hide is open about using an ECN or STP model, simply passing orders to the big banks and taking a small, visible fee. If a broker refuses to disclose their execution model, they are likely betting against their own clients.
Regulation as a Safety Net
Transparency is worthless without an actual watchdog. A broker that values its reputation leads with its licenses from heavy-hitters like the FCA or ASIC. They don’t bury their regulatory status in the fine print or hide behind “offshore” jurisdictions with zero oversight. More importantly, they provide proof that client funds are kept in segregated accounts. This ensures that if the broker goes bust, the money doesn’t go to their creditors—it stays with the trader. Without this level of openness, capital is essentially unprotected.
The Withdrawal Litmus Test
The ultimate test of a broker’s transparency is how they handle the exit. There are countless horror stories of traders growing an account only to find that “technical errors” or vague “bonus terms” prevent them from withdrawing their money. A legitimate broker has clear, public rules for getting funds out and doesn’t hide behind a wall of unreturned emails. If a platform makes it difficult to see the exit strategy, it’s a sign that the front door should have stayed closed.
Conclusion
In 2026, honesty is the most valuable feature a broker can offer. It is the foundation that allows a trader to focus on the charts instead of worrying if their stops are being hunted. Finding a partner with clear pricing, honest execution, and real regulation is the first trade that has to be won. Flashy marketing is easy to find, but transparency is what actually keeps a trader in the game for the long haul.
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