The agency advised taxpayers to expect service interruptions throughout the maintenance window, noting that the downtime is part of ongoing platform upgrades.

The announcement follows an FIRS tax compliance webinar held two days earlier, where officials clarified that small companies will be required to file returns from 2026—even though their corporate tax rate will remain at 0%.

Deputy Director Kehinde Kajesomo explained that small companies are no longer tax-exempt but will file self-assessments with zero payable tax, to improve reporting accuracy and compliance tracking.

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The companies, approved by the National Information Technology Development Agency (NITDA), were announced bythe  FIRS Acting Director of Tax Automation, Mike Adoga, during a two-day workshop on the e-invoicing solution in Lagos. He said the service providers were selected based on their nationwide coverage, security standards, neutrality, and ability to serve multiple sectors.

Adoga emphasised that taxpayers are free to choose any of the providers and switch if service delivery falls short, noting that FIRS would not endorse or recommend any particular company. “If any of them is not compliant for whatsoever reason, you have the choice to change and then let us know as FIRS. If you sense any breach or problems in dealing with anyone, please reach out to the FIRS team,” he told participants.

The FIRS official warned that any company found to have compromised standards would be delisted. He added that the list of certified providers would be updated as more firms meet the set requirements.

Chief of Staff to the FIRS Executive Chairman, Mr. Tayo Koleosho, represented by Director of Change Management, Emmanuel Eze, revealed that over 1,000 companies have been onboarded since the e-invoicing platform went live on August 1, representing only 20% of the target 5,000 companies. He noted that MTN, IHS, and Huawei were the first to go live on the system.

Koleosho explained that the FIRS recently extended the onboarding deadline by three months to November 1 to allow more companies to comply, but urged taxpayers not to delay the process. He said the workshop was organised to provide practical guidance on integration, real-time invoice transmission, and to introduce the certified providers who will be crucial in supporting adoption.

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The National Information Technology Development Agency (NITDA) has lauded global tech giants, including Google, X (formerly Twitter), Microsoft, and TikTok, for adhering to the Code of Practice for Interactive Computer Service Platforms and Internet Intermediaries. The Code, collaboratively issued by the Nigerian Communications Commission (NCC), National Broadcasting Commission (NBC), and NITDA, aims to promote online safety and address harmful content.

A key highlight from the 2023 compliance report reveals the platforms’ dedication to user safety and the enforcement of community guidelines. Among the notable statistics are:

• Over 4.1 million registered complaints.
• 65.8 million pieces of harmful content removed.
• 379,433 pieces of content re-uploaded after successful appeals.
• 12.1 million accounts deactivated or closed.

NITDA commended these actions, emphasizing their contribution to fostering a safer digital ecosystem for both Nigerians and non-Nigerians in the country.

Additionally, data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS) highlighted that foreign digital companies, including social media platforms operating in Nigeria, contributed over ₦2.55 trillion (approximately $1.5 billion) in taxes during the first half of 2024. This remarkable revenue growth underscores the importance of effective regulatory frameworks in promoting compliance and economic growth within the digital economy.

NITDA expressed its commitment to strengthening collaborations with stakeholders to address emerging challenges in the digital space. The agency reiterated its focus on enhancing user safety, digital literacy, and fostering trust and transparency.

Signed:
Mrs Hadiza Umar, fnipr, f.apra
Director, Corporate Communications & Media Relations
NITDA

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The Federal Inland Revenue Service (FIRS) has announced plans to launch a new digital solution called the FIRS e-Invoice, aimed at improving tax administration and compliance across Nigeria.

This was disclosed by the FIRS Executive Chairman, Dr. Zacchaeus Adedeji, during the “Emerging Tax Matters” stakeholders’ engagement hosted by the Lagos Chamber of Commerce and Industry (LCCI) in collaboration with FIRS.

Speaking through Mrs. Oti Olaniyi, Acting Director of the Medium Taxpayers Department, Adedeji explained that the e-Invoice initiative aligns with the Tax Administration and Enforcement Act of 2007 and is part of FIRS’ ongoing digital transformation strategy.

The system is expected to facilitate real-time validation and storage of transactions across business-to-business (B2B), business-to-consumer (B2C), and business-to-government (B2G) transactions.An e-invoice is a digital document exchanged between a buyer and a supplier, allowing for automatic processing throughout its lifecycle.

The introduction of this system marks a significant step towards modernizing Nigeria’s tax infrastructure, ensuring greater efficiency, transparency, and compliance.

Adedeji highlighted the importance of leveraging technology to tackle the challenges and opportunities in the evolving tax landscape.

“Our collective efforts will pave the way for a more prosperous and resilient Nigeria,” he said, urging stakeholders to support the initiative through constructive feedback and collaboration.

The FIRS Chairman also addressed recent restructuring within the agency and the implementation of various tax reforms designed to promote sustainable growth and equitable development.

Among these reforms are tax incentives aimed at boosting local industries and fostering transparency.A major challenge for the tax agency remains the informal sector, which accounts for a large portion of Nigeria’s economy. To better engage with this sector, Adedeji revealed plans to introduce simplified tax regimes and registration incentives to encourage small and micro-businesses to participate in the formal tax system.

LCCI President, Mr. Gabriel Idahosa, praised FIRS for its ongoing reforms and emphasized the need for stronger collaboration between the government and the private sector.

He acknowledged that Nigeria’s tax system has undergone significant transformations to boost revenue and simplify compliance, noting FIRS’ ambitious target to increase tax collection by 57%, aiming for N19.4 trillion in 2024.

Nigeria’s current tax-to-GDP ratio stands at 10.86%, with a target to increase it to 18% within the next three years.

Idahosa stressed the importance of coordinated efforts to achieve this goal, recommending that tax policies support business innovation and remove barriers to foreign currency-denominated transactions to foster a more robust investment environment.

He further emphasized the critical need for trust between the government and citizens, stating, “For these reforms to succeed, businesses and citizens must embrace a culture of tax compliance.

”Meanwhile, TechDigest reported that FIRS failed to meet its approved revenue target for the first four months of 2024. While the agency was expected to collect N3.32 trillion from oil taxes, it recorded only N1.63 trillion, representing 49% of the target.

Despite missing the mark, FIRS maintains an internal goal of N7.5 trillion in tax revenue for the entire year.With the introduction of the e-Invoice system and ongoing reforms, FIRS hopes to overcome these challenges and achieve its broader revenue collection targets.

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President Bola Tinubu has approved N35 billion for the take – off of the student loan scheme.

So far, 70, 000 applications have been approved by the Nigerian Education Loan Fund (NELFUND).

Another 50, 000 applications are currently being evaluated and would be approved within 30 days.

According to the Managing Director/Chief Executive Officer, NELFUND, Akintunde Sawyerr, the funds will be disbursed based on the timetable and calendars of the academic session of each institution.

He said: “The funds will be disbursed based on the timetable and calendars of the academic session of each institution. The portal for students to apply for the loan opened on May 24, 2024.

“The portal will be permanently open because institutions don’t have a uniform calendar,” Sawyerr added.

No fewer than 1.2 million students are expected to benefit from the cardinal programme of the Tinubu administration.

Applicants are required to provide their Joint Admissions and Matriculation Board (JAMB) letter, National Identification Number (NIN), and Bank Verification Number (BVN).

Students in Federal Government-owned tertiary institutions will be the first batch of beneficiaries of the loan scheme.

Those from state-owned tertiary institutions will benefit from the scheme too.

The agency said it would start receiving applications from students in state-owned tertiary institutions from June 25, 2024.

The loan, which is an equivalent of the tuition fees of the benefitting students, would be paid directly to their institutions.

But stipends would be paid directly to beneficiaries on a monthly basis to assist them buy other things that can make them comfortable while pursuing their education.

The agency is working with 126 tertiary institutions on the scheme.

The source said: “President Bola Tinubu has graciously approved N35bn for the student loan scheme. The funds are awaiting disbursement.

“About 70, 000 applications have been approved by NELFUND management. 50, 000 applications are currently being evaluated. These applications will be approved within 30 days.

“We receive an average of 1,500 applications a day.

“Mr President has provided enough funds to accommodate every Nigerian student who desires the loan.”

President Tinubu on April 3 signed into law the bill on the scheme in line with his electoral promise that no Nigerian student would drop out of school on account of lack of funds.

According to the law, repayment will commence two years after the completion of the National Youth Service Corps (NYSC) programme.

The ambitious cardinal programme will be funded with one per cent of the total annual collectable revenue by the Federal Inland Revenue Service (FIRS).

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President Bola Tinubu has directed the Federal Ministry of Communications, Innovation, and Digital Economy; the Federal Inland Revenue Service (FIRS), and the Federal Ministry of Environment to align regulations and tax frameworks to facilitate investment expansion in telecommunications and broadband infrastructure nationwide.

The President issued the directive at a meeting with a delegation from American Tower Corporation (ATC) Nigeria at the State House in Abuja on Thursday, expressing dissatisfaction with the bureaucratic pace in permit issuance processing for companies operating in the digital infrastructure sector.

The Chief Executive Officer of ATC Africa, Mr. Marek Busfy had expressed ATC Nigeria’s commitment to expanding its investments in the country, which have already surpassed $2.19 billion since its commencement of Nigerian operations in 2015.

Busfy also emphasized ATC’s commitment to delivering value to subscribers while reducing greenhouse gas emissions associated with its operations.

Responding, President Tinubu commended ATC Nigeria for its significant contributions and investments in the country’s ICT sector, highlighting the importance of innovative solutions to bridge the digital divide.

The President lauded the ongoing efforts of the Federal Ministry of Communications, Innovation, and Digital Economy to promote digital connectivity across the nation, particularly the 3 Million Technical Talent (3MTT) programme that functions to upskill three million Nigerian youths in digital literacy and innovation through innovation incubators nationwide.

President Tinubu outlined ongoing initiatives to establish broadband connectivity in all 774 local government secretariats within six months, leveraging existing infrastructure, such as NIGCOMSAT and Galaxy Backbone’s fibre optic network.

”In the area of ease of doing business, no nation can make progress without paying attention to the opportunities that are right in front of them. We have a vibrant youth population that has successfully innovated without much government support. What now happens in this era when we are providing massive support to their digital economic activities? They will do very well. You are investing in the right place at the right time.

”Considering our population and land mass, we need your investments to ensure that we are ready for a higher level of digital penetration in the telecommunications sector and the specific type of digital education that is needed in the competitive, knowledge-based global economy of the 21st century,” the President said.

Addressing concerns raised by the delegation regarding the ease of doing business in Nigeria, President Tinubu assured them of his administration’s commitment to implementing reforms that will eliminate bureaucratic constraints.

In response to a request from the delegation for a reduction in withholding tax for telecommunications companies to stimulate investments in telecommunications and broadband infrastructure, the President said the Federal Inland Revenue Service (FIRS) would review the matter and provide a solution that is in the best interest of both the investors and the Nigerian people.

”Every citizen, whether at the corporate or individual level, fights tax. Let us work with the FIRS and see how we can slice the cake. If the country has a good path of growth, it is a greater opportunity for you to invest,” the President stated.

In his remarks, the CEO of ATC Africa reiterated the company’s readiness to invest further in Nigeria’s ICT infrastructure to meet the market’s growing demand for data, while lauding the clarity of strategy demonstrated by the administration, particularly praising the roadmap and efforts of the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani.

”Mr. President, what has struck me in Nigeria is the clarity of strategy by your administration, particularly in the ICT sector, and the administration’s 3MTT programme. In the last year, we have invested over $200 million in growing our infrastructure in Nigeria, and we are ready to do significantly more.

”We have employed several hundred people in Nigeria and 25,000 more indirectly. We have paid about $400 million in taxes, both direct and indirect. As an American company, we are often asked about our experience in Africa and in Nigeria, and we want to stress that we are very ethical in our approach to business,” Mr. Busfy said.

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TECHDIGEST – The ambitious move by the Federal Inland Revenue Service (FIRS) to embrace the digitization of tax processes has continued to gather momentum after the Nigerian government reiterated its commitment to a digital economy.

A digitalized tax administration refers to using advanced platforms to enable real-time or near real-time collection and analysis of detailed taxpayer data.

According to experts, a digitalized tax administration process will block revenue leakages and revolutionize revenue generation for Nigeria.

It will also put a stop to illicit financial outflows from the country and enforce tax compliance among multinationals operating in the country.

TechEconomy gathered that Nigeria may have lost about $178 billion (about N5.4 trillion) to tax evasion by multinationals in ten years.

“Nigeria’s economy is fast digitalizing and digitalization of the Nigerian economy means that the ways and manners of organizing and doing businesses have changed,” Professor Yemi Osinbajo said on Thursday.

Professor Yemi who was represented by the Executive Chairman of the FIRS, Muhammad Nami, at the recent Chartered Institute of Taxation of Nigeria’s (CITN) 24th Annual Tax Conference, said the government will continue to heavily invest in the automation of tax administrative processes and digital infrastructure.

Professor Osinbajo noted that the theme for the tax conference, “Global Disruption, Taxation, and Digitalisation: Implication for Socio-Economic Development” aptly captures the prevailing realities within the national and global digitalization.

“Indeed, the radical changes brought about by digitalization have displaced the traditional approach to tax administration. Consequently, the digitalization of tax administration is unavoidable.

“He revealed the government has provided the enabling environment for a digitalized tax administration by making the necessary tax policy changes.

Additionally, he said, the government is also developing rules for taxation of the digital economy, enactment of required legislation, and providing necessary political backing for the team negotiating the new international tax rules for the digitalized economy.

However, the Vice President urged the institute to see its role in society as a pillar of the country’s socio-economic development.

“The possible impact of non-compliance by taxpayers—whom you hold briefs for—on the government’s revenue and the larger society is crucial and must be given topmost priority while holding briefs for them.

“In doing so, you must always bear in mind the pronouncement of the Court of Appeal in Phoenix Motors v. National Provident Fund Management Board (1993) that it is in the best interest of the society at large that government be in revenue.“

It is through this prism that I see your Institute as a pillar for the socio-economic development of Nigeria and the emancipation of the downtrodden of our society.

Without a doubt, your members will continue to discharge the solemn and sacred responsibility of ensuring that the interest of the larger society in Nigeria is not trodden upon; and this you must do with patriotic zeal,” he noted.

Source: Techeconomy.ng

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TECHDIGEST– The Nigerian Communications Commission (NCC) and the Federal Inland Revenue Service (FIRS) have stepped up their collaboration by forming a Joint Committee made up of senior and management staff from both agencies to work on inter-agency strategies for increasing national revenues in the telecommunications sector. The inauguration of the committee, which includes six NCC officials and eleven FIRS officials, was attended by senior NCC and FIRS officials, led by Dr. Dick Irri, the tax agency’s Coordinating Director for Compliance Support Group, who represented FIRS Executive Chairman Muhammad Nami at the event. The terms of reference (ToR) of the Committee, according to Adewolu, are to review the Memorandum of Understanding (MoU) signed between the NCC and the FIRS on June 9, 2020; and to carry out inter-agency interaction on the implementation of the NCC’s Revenue Assurance System (RAS), to ensure that it incorporates the needs of FIRS to the extent that RAS can remain the sole interface with telecom services. Given the Committee’s composition, as well as the vast dedication and expertise of its members – which had informed the agencies’ selection of them , Adewolu stated that the NCC and FIRS managements expected nothing less than an excellent output from the Committee, and charged them to work together harmoniously and in the national interest.

READALSO:NCC Hires PwC

Dr. Dick Irri, who headed the FIRS team to the inauguration, also admonished the Committee to take their responsibilities seriously. “I would like to task you to take this assignment as a national matter as we expect the two agencies to work in harmony, collaborate effectively and have a warm handshake that will make this synergy between the two agencies a great example of collaboration between Federal Government agencies towards enhancing fiscal governance in Nigeria,” he said.

The establishment of the Committee was one of the major outcomes of a meeting between the FIRS and the NCC on March 8, 2022, convened at the request of the Honorable Minister of Communications and Digital Economy, Prof. Isa Ali Pantami, to discuss the FIRS’ request for data and documents from the telecoms industry in order to increase national revenues from the sector. The establishment of the Committee was one of the major outcomes of a meeting between the FIRS and the NCC on March 8, 2022, convened at the request of the Honorable Minister of Communications and Digital Economy, Prof. Isa Ali Pantami, to discuss the FIRS’ request for data and documents from the telecoms industry in order to increase national revenues from the sector.

The inauguration is a noteworthy accomplishment because it strengthens the strategic partnership between the two government agencies in achieving their statutory goals. It also validates the NCC’s Strategic Management Plan (SMP) 2020-2024 and Strategic Vision (Implementation) Plan (SVP 2020-2025) as well as FIRS’ strategic framework’s emphasis on building mutually-sustainable relationships with important stakeholders. The NCC’s and FIRS’ efforts are widely recognised as critical to the Federal Government’s long-term revenue and economic plans.

In this way, the telecoms sector has maintained a reasonably high contribution to GDP over the years, with 12.6 percent in the fourth quarter of 2021. Furthermore, the FIRS has said that some telecom licensees provide a large portion of total national tax revenue. The Joint Committee is meant to help both organizations maximize revenue for the federal government from telecommunications, the digital economy, and related industries.

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TECHDIGEST – Over the last few years, concerns have been raised by stakeholders that the existing international tax system does not properly capture or take into consideration the digitalization of business transactions. Undoubtedly, the world economies are quickly moving from physical assets to digital ones. Online transactions, e-commerce, cryptocurrencies, and now digital taxation.

Some months ago, the federal government in Nigeria disclosed that it would charge offshore companies providing digital services to local customers in Nigeria, saying a six percent tax on turnover would be charged as provided in the 2021 Finance Act.

The Nigerian Investment Promotion Commission (NIPC) had stressed that the Nigerian digital economy was expected to generate $88 billion and create three million new jobs by the end of 2021.

Nigerians spend more money online and via mobile transactions than ever before. That has shifted business emphasis to digital sources of revenue and digital channels. The growth of the digital economy has drawn the attention of state authorities to digital products and services. In particular, numerous controversies have arisen regarding tax regulations.

For the Federal Inland Revenue Service (FIRS), its mandate is to increase tax revenue collection at the national level which is currently one of the lowest in the world in terms of tax to GDP ratio. Hence, the leadership is expected to introduce reforms that will make the tax system more efficient and more result-oriented.

The FIRS Executive Chairman, Muhammad Nami, a thorough-bred tax, Accounting & Management professional, has announced a target of 100 per cent automation of tax administration processes before the end of this year.

Speaking as the Special Guest at the Pedabo 2022 Annual Public Private Sector Engagement, Nami noted that by virtue of the amendment to Section 25 of the FIRS (Establishment) Act in the 2021 Finance Act, any person who fails to grant the Service access to its information technology systems to connect to its automated tax administration solution is liable to certain penalties under the law.

He went further to state that in 2022, the Service will give priority to the collection of taxes from the digital economy, and that it will deploy technological tools in assessing entities that fall within the Significant Economic Presence (SEP) threshold and relevant turnover will be generated for Nigeria.

Meanwhile, over the years, FIRS has found it extremely difficult to tax non-resident companies in Nigeria on profits derived from here, the question of whether a foreign company is liable to income tax in Nigeria is often controversial.

Thus, Section 13 of Companies Income Tax Act (CITA) implies that a non-resident company must have physically-situated activities in Nigeria, directly or indirectly, before such a company can be liable to income tax in Nigeria.

In his statement, the FIRS boss noted that
“With the amendment of Section 10 of the VAT Act by the Finance Act 2021, we will implement the published Guidelines on the Simplified Compliance Regime on VAT for Non-Resident Suppliers, to collect VAT on digital supply of services and intangibles to Nigeria.

“The Service has deployed a digital service interface, the Digital Economic Compliance (DEC) Tool, to facilitate the implementation of the regime.

“The implementation of the DEC Tools will also assist the Service in determining entities that fall within the SEP threshold and relevant turnover generated from Nigeria. This tool will go live shortly,” he said.

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TECHDIGEST – The Federal Inland Revenue Service (FIRS) says it will achieve 100 percent automation of all its tax administration processes with the aim of blocking revenue leakages thereby revolutionizing revenue generation in Nigeria.

This is contained in a statement issued by the Special Assistant to the Executive Chairman on Media and Communication, Johannes Wojuola on Thursday in Abuja.

The Executive Chairman of the FIRS, Muhammad Nami while speaking as the Special Guest at the Pedabo 2022 Annual Public-Private Sector Engagement on Tuesday highlighted that by virtue of the amendment to Section 25 of the FIRS (Establishment) Act in the 2021 Finance Act, any person who fails to grant the Service access to its information technology systems to connect to its automated tax administration solution is liable to penalties under the law.

“We will seek to achieve 100 percent automation of all our tax administration processes, which will block revenue leakages and revolutionize revenue generation in the country.

“We expect your full cooperation in this regard, considering that by the amendment to Section 25 of the Federal Inland Revenue Service (Establishment) Act in the 2021 Finance Act (through Section 18 of the 2021 Finance Act), any person who fails to grant the Service access to its information technology systems to connect to its automated tax administration solution is liable to penalties under the law.”

Nami noted that in the year 2021, the Service had leveraged on the amendments to its Establishment Act to embark on “a major infrastructure overhaul, focusing on the deployment of technology for the automation of its processes and procedures,” thereby deploying its home-grown integrated tax administration system, TaxPro Max.

He further stated that in 2022, the Service will give priority to the collection of taxes from the digital economy and that it will deploy technological tools in assessing entities that fall within the Significant Economic Presence (SEP) threshold and relevant turnover generated from Nigeria.

“With the amendment of Section 10 of the VAT Act by the Finance Act 2021, we will implement the published Guidelines on the Simplified Compliance Regime on VAT for Non-Resident Suppliers, to collect VAT on the digital supply of services and intangibles to Nigeria.

“The Service has deployed a digital service interface, the Digital Economic Compliance (DEC) Tool, to facilitate the implementation of the Regime. The implementation of the DEC Tools will also assist the Service in determining entities that fall within the SEP threshold and relevant turnover generated from Nigeria. This tool will go live shortly.”

He also stated that the Service “will focus on compliance and enforcement strategies in 2022, by leveraging on intelligence, strategic data mining, and analysis, to enhance audit and investigation functions and implementing the penalty regimes in accordance with the laws;” adding that, “the Service is poised to ensure prosecution of recalcitrant taxpayers in 2022.”

The FIRS chairman called on taxpayers, tax consultants, tax collection agents, and other stakeholders in the tax system to partner with the FIRS in 2022 to make taxation and tax revenue collection a pivot for economic growth and national development, stating that “no society can grow without its citizens paying their taxes.”

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