FIRS boss says Nigeria in revenue crisis
Dr. Zacch Adedeji, the newly appointed Chairman of the Federal Inland Revenue Service (FIRS), has raised concerns about Nigeria’s ongoing revenue crisis, emphasizing the need for swift measures to address this critical issue.
Adedeji made these remarks on Monday as he assumed leadership of the agency, succeeding his predecessor, Muhammad Nami.
He pointed out that a staggering 96% of the Federal Government’s revenue was allocated to debt servicing last year, a situation that is deemed unsustainable.
Muhammad Nami, the former FIRS chairman, reported that the agency had contributed N8.5 trillion in revenue to the federation account by mid-September.
Adedeji underscored the nation’s overwhelming debt burden, reiterating that last year, an alarming 96% of government revenue was absorbed by debt servicing.
He stated, “We are grappling with a severe revenue crisis, where government revenue remains low in the face of a substantial public debt. When debt surpasses Gross Domestic Product (GDP) and debt servicing outpaces revenue, immediate actions are imperative to rectify the situation.”
Adedeji revealed that the current administration is dedicated to revenue optimization by establishing a Presidential Fiscal Policy and Tax Reforms Committee.
He affirmed that the FIRS would align with the reforms initiated by President Bola Tinubu, who recently inaugurated the Presidential Fiscal Policy and Tax Reforms Committee.
The primary mission of this committee is to formulate an effective strategy and implement fiscal policies and tax reforms that promote economic prosperity.
This development follows President Bola Ahmed Tinubu’s appointment of Dr. Zacch Adedeji as the Chairman of FIRS last week.
