FIRS Unveils New Reforms for Boosting Nigeria’s Tax Revenue
The Federal Inland Revenue Service (FIRS) has reiterated its commitment to strengthening Nigeria’s revenue base through digital innovation and compliance-friendly policies.
Speaking on Arise News television, the Chief of Staff to the FIRS Executive Chairman, Tayo Koleosho, outlined a series of initiatives aimed at boosting tax collection while reducing the burden on businesses.
Koleosho explained that the agency is prioritizing voluntary compliance as a more sustainable approach to revenue generation, stressing that over-reliance on business audits could be disruptive.
Instead, FIRS is expanding tools that allow taxpayers to comply seamlessly while ensuring transparency in the system.
Central to these reforms is the introduction of the Merchant Buyer Solution (MBS), an electronic invoicing platform that will replace traditional paper invoicing.
The system is designed to capture transactions across business-to-business (B2B), business-to-consumer (B2C), and business-to-government (B2G) dealings, enabling real-time validation and reducing opportunities for tax evasion.
According to him, full deployment is expected later this year, with the goal of raising Nigeria’s tax-to-GDP ratio significantly.
Koleosho also pointed to FIRS’s growing collaboration with the International Monetary Fund (IMF), which has commended Nigeria for the progress made in tax reform. Through this partnership, FIRS is receiving technical support in digital transformation, VAT automation, and compliance frameworks, which he said are key to aligning Nigeria’s tax administration with global standards.
He further noted that the new measures are being implemented in partnership with the National Information Technology Development Agency (NITDA) to ensure data security and regulatory oversight, reinforcing confidence in the digital platforms being rolled out.
The reforms, he stressed, are not just about raising figures but about building a tax system that is modern, transparent, and supportive of economic growth.
“Our focus is on efficiency, fairness, and sustainability. If taxpayers find it easy and secure to comply, revenue will naturally increase,” he said.
With Nigeria facing fiscal pressures and rising expenditure demands, the FIRS leadership believes these innovations will play a central role in shoring up government finances, reducing reliance on oil income, and placing the country on a firmer economic path.
