The International Monetary Fund (IMF) has lauded the Federal Inland Revenue Service (FIRS) for its pivotal role in Nigeria’s ongoing tax reform efforts, describing the agency’s progress under its Executive Chairman, Dr. Zacch Adedeji, as remarkable and impactful.

IMF Senior Economist in the Fiscal Affairs Department, Mr. Paulo Paz, gave the commendation on Tuesday at the opening session of an IMF-supported Headquarters Mission at the FIRS Head Office in Abuja. The mission is part of the Fund’s continued engagement with the revenue agency, aimed at deepening technical support and strengthening institutional capacity.

Paz praised the FIRS for what he called “very good work” delivered to Nigerian citizens under Adedeji’s leadership and noted that the recently signed tax reform laws place fresh responsibilities on the agency, further highlighting its growing relevance in the country’s economic development.

“We want to know how we can best support you with this new challenge,” Paz said. “Our take on the four tax laws is, first, a recognition of the very good work that FIRS has been providing to the citizens. You now have new responsibilities with these very powerful laws, which increase the relevance of the tax administration in Nigeria. We are honoured to be your partner and we congratulate you for the results so far. There is more to come, and we are here to help.”

The IMF team, according to a statement by Mr. Dare Adekanmbi, Special Adviser on Media to the FIRS Chairman, is in Nigeria to explore areas of further collaboration as the country enters a new phase of tax administration reform.

In his response, Dr. Adedeji, who was represented by his Chief of Staff, Mr. Tayo Koleosho, appreciated the IMF for its long-standing partnership with the service. He assured the Fund that the collaboration would continue as the FIRS transitions into the Nigeria Revenue Service (NRS) by 2026, in line with new legal and structural reforms.

“IMF has journeyed with us,” Adedeji said. “We are working together on digital transformation, VAT automation, compliance programs, and automation of key functions. I am particularly focused on aligning our corporate strategy with data-driven portfolio management so that our vision is translated into actionable and measurable tasks.”

Also speaking, the Coordinating Director of the Corporate Services Group at FIRS, Mrs. Bolaji Akintola, highlighted IMF’s crucial role in the agency’s reform trajectory. She recalled that the IMF supported FIRS in conducting two rounds of systemic evaluation exercises using the internationally recognised Tax Administration Diagnostic Assessment Tool (TADAT) in 2018 and 2023.

She noted that the significant improvement recorded in the 2023 TADAT assessment, compared to the 2018 result, was a direct reflection of the FIRS’s commitment to institutional excellence and reform.

“Many of the weak indicators from the 2023 Performance Assessment Report have been addressed,” Akintola said. “Some of these reforms have now been codified into the four tax laws recently signed by President Bola Tinubu. If another TADAT assessment were conducted today, the results would be even better.”