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FIRS, RMAFC Form Committee to Enhance Tax Compliance  - Economic Confidential
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Home Financial Tax Matters FIRS, RMAFC Form Committee to Enhance Tax Compliance 
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FIRS, RMAFC Form Committee to Enhance Tax Compliance 

By
Economic Confidential
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May 16, 2025
TAX
TAX

FIRS, RMAFC Form Committee to Enhance Tax Compliance 

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The Federal Inland Revenue Service (FIRS) and the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) have inaugurated a joint technical committee to strengthen tax revenue monitoring and boost fiscal sustainability across Nigeria’s three tiers of government.

The inauguration took place on Tuesday at the FIRS headquarters in Abuja, according to a statement issued on Thursday by the Technical Assistant on Media to the FIRS Chairman, Sikiru Akinola.

RMAFC’s Inland Revenue Monitoring Committee Chairman, Bimbo Kolade, highlighted the crucial role FIRS plays in ensuring steady revenue flows.

Kolade noted that federal, state and local governments can make projections and execute projects as a result of steady revenue, which comes mainly from tax revenue collected by FIRS and shared monthly at the Federation Allocation Account Committee meeting.

He noted that in 2024, FIRS tax revenue accounted for about 65 per cent of the total funds shared among the three tiers of government, cementing tax as the pivotal source of revenue, overtaking crude oil sales by the Nigerian National Petroleum Corporation.

Kolade commended the FIRS Chairman, Dr Zacch Adedeji, for his leadership since September 2023, saying, “If not for the wonderful job our chairman has been doing since September 2023 at the Service, Nigerians may have been crying a little more with what we have passed through.

“With your dedication, commitment and stellar performance, we can see that the country has been the better for it. I also want to congratulate Dr Adedeji on the success of the Tax Reform Bills.

“We could see the initial misunderstanding that came with the Bills— even the little one between RMAFC and FIRS on the issue of VAT allocation and the rest of them. But then, because of the kind of person the FIRS chairman is, he called our chairman, and it was resolved.”

Kolade further explained that the IRMC’s role is to monitor all accruals into the federation accounts. “At RMAFC, we have various committees that oversee various parts of government organisations that we need to monitor. One of the federal agencies is FIRS.

“This IRMC was put in place to monitor tax revenue by ensuring that all taxes, such as Value-Added Tax, Companies Income Tax and the rest, are properly collected and remitted into the federation accounts.”

Speaking at the event, Adedeji described the inauguration as more than just a formality but a reflection of the enduring and strategic relationship between the two agencies.

He said, “While we at FIRS are charged with the collection of revenue, particularly non-oil taxes, RMAFC plays a vital role in ensuring that the revenues generated are monitored, properly accounted for, and equitably distributed in line with constitutional provisions.

“Our collaboration over the years has been built on mutual respect, professionalism, and a common objective: to enhance the fiscal sustainability of the Nigerian state. RMAFC’s work in monitoring revenue and advising on fiscal allocation directly supports our efforts to build a more robust and transparent tax system.”

Adedeji added that the RMAFC team’s visit presented an opportunity “to reflect on our shared progress, identify areas for improvement, and chart a forward-looking path toward even more impactful collaboration.”

“As Nigeria seeks to diversify its revenue sources and reduce its dependence on oil, the roles of FIRS and RMAFC become even more critical. It is against this backdrop that we welcome this engagement, not just as a courtesy, but as a strategic dialogue aimed at strengthening our institutional partnership.”

He revealed that the collaboration has yielded positive outcomes through “information sharing, data verification exercises, and joint revenue monitoring initiatives, we have contributed meaningfully to improved revenue accountability at the federal level.

“RMAFC’s insights have helped shape policy decisions, while our work at FIRS in improving tax administration has directly supported the Commission’s monitoring and allocation functions. The synergy has also led to better forecasting and fiscal planning at the national level.”

However, Adedeji acknowledged that more work remains. He called for institutionalising the collaboration through a structured framework designed to address issues like duplication of efforts, conflicting priorities, communication breakdowns, and role confusion.

The framework would include regular inter-agency strategy meetings, joint research and analytics, and technology-driven data integration.

It would also clearly define roles, set common goals, and monitor progress, ultimately enhancing collaboration, efficiency, and innovation, he noted.

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