Fiscal policies are cornerstone of Nigeria’s economic stability, prosperity –Ag. FIRS Chair

*Zaccheus Adedeji, Acting Executive Chairman of the Federal Inland Revenue Service, affirms well-structured fiscal policies cum tax reforms remain the main plank of economic stability and prosperity, stressing their strategic importance in provision of necessary infrastructure, healthcare, education, social services, and competitive economic climate for Nigerians

Gbenga Kayode | ConsumerConnect

The Federal Inland Revenue Service (FIRS) has restated the need for all stakeholders to address the identified challenges and opportunities presented by Nigeria’s fiscal policies and tax systems for the country to make significant strides in economic development.

ConsumerConnect reports Mr. Zaccheus Adedeji, Acting Executive Chairman of FIRS, stated this in his goodwill message at the recent Retreat on Fiscal Policy and Tax Reforms for Senators in the National Assembly (NASS), in Abuja, FCT.

Adedeji, who said the Federal lawmakers’ dedication to the welfare of Nigeria and its citizens is commendable, applauded the Distinguished Senators for the opportunity accorded him to share perspectives of the Federal Inland Revenue Service on the vital subject.

While acknowledging his awareness of the importance of a sound fiscal policy and well-thought-out tax reforms in Nigeria, the Acting Executive Chairman noted that the West African country with its vast potential and abundant resources, “is positioned to make significant strides in economic development.”

Fiscal policies as cornerstone of economic stability, competitiveness and prosperity

Adedeji also harped on the need for all stakeholders to collectively proffer solutions to identified challenges and opportunities in Nigeria’s fiscal policies and tax systems in order to attain marked economic development.

“To harness this potential, we must address the challenges and opportunities presented by our fiscal policies and tax systems,” said he.

He further told the lawmaker that Nigeria’s fiscal policy is the cornerstone of its economic stability.

The FIRS Chief stated: “It dictates how the government collects, manages, and allocates resources for public welfare.

“A well-structured fiscal policy is essential to provide the necessary infrastructure, healthcare, education, and social services for our growing population.

“It is equally crucial in ensuring that our economic environment remains competitive for both domestic and foreign investors.”

According to him, tax reforms are integral to a robust fiscal policy, as Adedeji stressed though the current tax system is making significant contributions to the country’s revenue, yet there is room for improvement.

He urged the stakeholders to focus on simplifying the tax laws, enhancing compliance, and broadening the tax base to ensure fairness and equity.

He said: “This will stimulate economic growth and reduce the burden on individuals and businesses alike.”

On Presidential Fiscal Policy and Tax Reforms Committee

The Acting Executive Chairman of FIRS, in his address at the retreat appreciated President Bola Ahmed Tinubu, GCFR, for setting up the Presidential Fiscal Policy and Tax Reforms Committee to review and recommend changes that will address long-standing fiscal challenges in the country.

Restating the commitment of the Service to supporting the ongoing reforms, he averred: “We, at the FIRS, are fully committed to supporting these reforms.

“We have taken substantial measures to improve tax collection efficiency, reduce tax evasion, and foster a business-friendly environment. But we need to do more.”

He also disclosed that the support, which the FIRS receives from the National Assembly has been invaluable.

“I am confident that with your continued support, we can achieve even more remarkable results,” Adedeji assured the Senators.

Diversification of revenue sources

Besides fiscal policy and tax reforms, the FIRS Acting Executive Chairman urged the stakeholders to explore avenues for diversifying the country’s revenue sources.

He noted: “Over-reliance on oil revenues has exposed our economy to volatility, as witnessed in recent years. “Diversification of revenue sources will not only bolster our fiscal resilience but also enable the government to better serve the people and address our most pressing needs, especially lifting our people out of poverty.”

Adedeji said stakeholders must bear in mind the need for social inclusion and poverty reduction.

The Acting FIRS Chairman also called for incentives that must be targeted and rationalised to limit abuse and avoidable leakages while promoting investment and job creation in the Nigerian economy.

“The challenges we face in our fiscal policy and tax system are opportunities for a brighter, more prosperous Nigeria, he stated.

Adedeji added: “It is my hope that through collaboration, diligent efforts, and innovative thinking, we can forge a path to a more equitable, efficient, and prosperous future.”