The Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, on Monday said Nigeria’s tax-to-GDP ratio has risen to 13.5 per cent, up from 10 per cent at the start of the current administration.
Adedeji, who spoke during an interview to mark his two years in office, said the target is to surpass Africa’s average of 15 per cent and reach 18 per cent by 2027. He also disclosed that the country’s revenue-to-debt service ratio had dropped from about 90 per cent to 50 per cent within two years.
Highlighting reforms under President Bola Tinubu’s administration, he said the FIRS had helped transform the nation’s fiscal landscape. According to him, tax revenue now accounts for about 70 per cent of allocations from the federation account, with the three tiers of government recently sharing a record N2 trillion monthly allocation.
Adedeji noted that federal allocations to states had grown by around 70 per cent, enabling about 30 states to repay N1.85 trillion in debts over 18 months. He credited the improvement to Tinubu’s economic reforms, including subsidy removal and the unification of exchange rates, which boosted federation revenues.
He added that new consolidated tax laws, which take effect in January 2026, would simplify compliance, eliminate multiple taxes, and reduce burdens on businesses. Under the reforms, food, education, agriculture, and shared transportation would be VAT-free, while small businesses with annual turnover below N50 million would be exempt from tax.
“The president promised to remove hurdles for businesses, and he has delivered,” Adedeji said, describing the new tax regime as the most significant reform since independence.
