According to Bloomberg, Nigeria is on track to meet its revenue target for the year after addressing inefficiencies in its tax collection system. Zacch Adedeji, chairman of the Federal Inland Revenue Service, stated that the country set a target of 19.4 trillion naira ($12 billion) for the year. As the third quarter approaches, Adedeji expressed confidence in achieving this goal based on current figures. Adedeji, who also serves as an adviser to President Tinubu, has prioritized fixing Nigeria’s tax system as part of broader efforts to revamp the economy and reduce the fiscal deficit.
Africa’s largest crude producer has faced challenges in recent years, prompting the revenue agency to plan an overhaul of outdated tax laws, including the Stamp Duty Act, which dates back to 1939. Adedeji highlighted the need for modern tax laws that reflect contemporary society, including internet connectivity. Additionally, the agency plans to bring cryptocurrency under regulatory oversight to further boost revenues. Adedeji emphasized the importance of regulating the cryptocurrency ecosystem, describing it as an integral part of the economy.
Nigeria is currently grappling with its worst cost of living crisis in decades and aims to spend 35 trillion naira in 2024. The government's efforts to enhance tax efficiency and broaden the tax base are seen as crucial steps toward achieving fiscal stability and economic growth.