2024: How Zacch Adedeji broke record of tax administration in Nigeria

Under his stewardship, the FIRS not only surpassed its revenue targets but also modernised tax processes, expanded the tax base, and championed equitable taxation policies.

Appointed as part of President Bola Ahmed Tinubu’s Renewed Hope Agenda, Dr. Adedeji embraced his mandate to overhaul the tax system with purpose and determination.

According to tax analyst Arabinrin Aderonke Atoyebi, Adedeji epitomised leadership that prioritised impact over position, transforming the FIRS into a high-performing agency driving Nigeria’s economic recovery.

“Leadership is about making an impact, and Dr. Zacch wasted no time proving this,” Atoyebi noted, praising his swift actions and effective reforms.

Adedeji’s reforms were centred on modernising the TaxProMax system. By automating over 80% of previously manual processes, the platform enhanced transparency, streamlined tax collection, and improved service delivery.

"This innovation made tax processes more accessible and user-friendly, especially for small business owners," Atoyebi observed.

The introduction of the National Single Window Project (NSWP) further simplified trade and bolstered Nigeria’s global competitiveness by integrating tax and trade systems into a unified, efficient portal.

Traditionally reliant on oil revenue, Nigeria’s financial stability necessitated diversification. Adedeji’s approach included incentives and support for small and medium-sized enterprises (SMEs) to join the tax system.

“He made it easier for SMEs to pay taxes and grow within the system, ensuring broader participation in revenue generation,” Atoyebi emphasised.

These efforts resulted in FIRS exceeding its 2024 revenue target of ₦19.4 trillion, a staggering increase from the ₦12.3 trillion collected in 2023. This record-breaking achievement underscored the efficacy of Adedeji’s strategies.

Adedeji’s insistence on a fair tax system was another hallmark of his leadership. By prioritising policies that reduced the tax burden on the poor while ensuring wealthier individuals and corporations contributed their fair share, he redefined tax equity in Nigeria.

“The philosophy of ‘We tax the fruit, not the seed’ has made the system more inclusive and less burdensome,” Atoyebi said.

Measures like exempting minimum-wage earners and small businesses with turnover under ₦50 million from income tax were particularly impactful.

Adedeji’s reforms extended to combating corruption within the FIRS.

The establishment of the Anti-Corruption and Transparency Unit (ACTU) in collaboration with the Independent Corrupt Practices Commission (ICPC) ensured integrity in tax administration.

“This step aligns with his broader vision for an equitable tax system that prioritises prosperity,” Atoyebi remarked.

The Tax Reform Bill of 2024, a cornerstone of Adedeji’s initiatives, passed its second reading in the Senate.

The bill aims to consolidate fragmented tax laws, simplify compliance processes, and promote fairness. It introduces tax tribunals and ombudsman offices to resolve disputes transparently.

“Streamlining tax laws will reduce bureaucratic hurdles and encourage business growth, particularly for SMEs,” Atoyebi explained.

Recognising the importance of a motivated workforce, Adedeji prioritised FIRS employee welfare. His leadership fostered a committed and energised team, from easing promotion processes to implementing support programmes.

As President of the Commonwealth Association of Tax Administrators (CATA), Adedeji leveraged international platforms to share best practices and position Nigeria as a leader in tax administration. His initiatives strengthened Nigeria’s standing in global trade and tax discourse.

While significant progress has been made, challenges remain. Adedeji’s commitment to fully implementing reforms nationwide reflects his dedication to a resilient and inclusive tax system.

“This year has been about more than just revenue; it’s about setting Nigeria on a path toward fiscal independence and resilience,” Atoyebi concluded.

As Nigeria continues to reap the benefits of these transformative reforms, Dr. Zacch Adedeji’s leadership is a testament to purposeful governance's power.