By Luminous Jannamike

ABUJA – The Federal Inland Revenue Service (FIRS) on Wednesday announced a shift in its tax administration approach, prioritising voluntary compliance over enforcement, especially within Nigeria’s informal sector.

This change aims to simplify tax processes, enhance taxpayer education, and build trust in the tax system.

In a statement from Collins Omokaro, Special Adviser on Communications and Advocacy, FIRS outlined its strategy for modernising tax administration through technology and collaboration.

The announcement followed a Stakeholders Engagement Session at the Maitama Emerging Taxpayers Office (ETO) in Abuja, where strategies for achieving voluntary compliance were discussed.

The statement noted: “Under Zacch Adedeji, PhD, FIRS is prioritising voluntary compliance over enforcement, ensuring that taxpayers, particularly those in the emerging taxpayers’ bracket, are informed and equipped to meet their obligations.

“The current administration emphasises that tax reforms should be driven by transparency, collaboration, and technology to facilitate compliance.

“The engagement addressed key concerns, clarified misconceptions, and aimed to strengthen trust between the Service and taxpayers.

“A primary focus was increasing awareness among emerging taxpayers in the informal sector, where many remain outside the tax net due to a lack of understanding of their obligations.

“FIRS is tackling this through taxpayer education initiatives, partnerships with tax practitioners, and technology-driven solutions that simplify compliance.

“The FIRS 2025 Strategic Roadmap, which outlines steps for modernising tax administration, was also discussed. It focuses on Capacity Building & Training, Technology Advancement, and Facility & Infrastructure Enhancement to equip both taxpayers and FIRS officers.

“The role of tax practitioners in simplifying compliance processes was highlighted, with FIRS aiming to improve service delivery through collaboration.

“The session also recognised top taxpayers for 2024, acknowledging their contributions to national revenue.

“The event brought together key institutions, including the FCT Emerging Taxpayer Department and the FCT Tax Practitioners Association, to strengthen the feedback loop between taxpayers and the FIRS.

“FIRS is committed to ongoing stakeholder engagement, recognising that dialogue across both formal and informal sectors is essential for an efficient tax system. The goal is to evolve tax administration into a model of voluntary compliance rather than enforcement.

“FIRS aims to create a collaborative, technology-driven tax system that facilitates compliance for all Nigerians.”