The Lead Story

IMF gives FIRS a standing ovation

The Big Picture: Abuja just got a confidence boost from across the Atlantic. An International Monetary Fund (IMF) mission is in town, pledging technical muscle and loud applause for Nigeria’s Federal Inland Revenue Service (FIRS) as the agency rolls out the country’s most ambitious tax makeover in decades.

The Details: Opening the IMF-supported headquarters mission on Wednesday, senior economist Paulo Paz told reporters that the Fund "recognises the good work that FIRS has been providing to the citizens,"* Punch reports. Paz said the four new tax laws signed on 26 June will hand FIRS “powerful responsibilities” and promised the IMF would “be here to help.”
FIRS chair Zacch Adedeji welcomed the delegation, noting that the partnership will continue when FIRS morphs into the Nigeria Revenue Service (NRS) next year, according to BusinessDay.
Why all the fuss? Because the reforms aim to harvest at least $7.5 billion** in untapped revenue annually, trimming Nigeria’s reliance on borrowing, analysts told Business News Nigeria.

Why It Matters / What They’re Saying: The reaction was swift. Economists argue the cash boost could push the tax-to-GDP ratio from a global-low 10.8 % to 18 % by 2027, easing the country’s ₦149 trillion debt pile. But policy wonks caution that “strong institutions—not just strong laws—are needed for reform to endure,” The Guardian warns, citing risks of politicised enforcement.

Around the Tax World

• Banks on watch: From 2026, lenders must flag any account that tops ₦5 million in monthly transactions to FIRS, part of the new Tax Reform Act’s transparency push (NigerianEye).

• E-invoicing wins fans: Digital platform Afri Invoice says businesses clocked 99.7 % compliance on FIRS’s new e-invoicing rule, signalling that corporate Nigeria is warming to paperless tax reporting (Leadership).

• Fraud trial heats up: TStv boss Bright Echefu and three others were re-arraigned over alleged ₦1 billion and $1.3 million fraud, including claims of unpaid VAT, PAYE and company income tax (The Nigerian Voice).

• Regional skills boost: FIRS renewed its tie-up with IMF’s AFRITAC West 2 to sharpen staff skills in VAT automation and digital compliance (The Nation).

By the Numbers

Tax Stat of the Day: $7.5 billion – the annual revenue windfall experts say the 2025 tax laws could unlock, cutting Nigeria’s thirst for debt (Business News Nigeria).

Looking Ahead

All eyes are now on the National Assembly to finalise the legal hand-over from FIRS to the Nigeria Revenue Service before year-end, while the IMF team drafts its technical-assistance playbook.

Prepared by MyTax - mytax.com.ng