The country is in a revenue crisis, according to Dr. Zacch Adedeji, the new head of the Federal Inland Revenue Service (FIRS), and immediate action is needed to reverse the narrative.
When taking over the agency’s leadership from his predecessor, Muhammad Nami, on Monday, Adedeji made this statement. He emphasised that the situation is unsustainable and noted that 96% of the Federal Government’s revenue was used to pay off debt in the previous year.
Nami, a former head of the revenue agency, said that as of mid-September, the FIRS had contributed N8.5 trillion in income to the federation account.
Adedeji also emphasised the country’s excessive debt load, stating that 96% of its income was used to service debt last year.
“We are in a revenue crisis; government revenue is low despite a massive public debt,” declared Adedeji. 96% of the government’s revenue last year went towards paying down debt.
“Immediate actions must be taken to remedy the situation where debt has grown larger than the GDP, GDP, and debt servicing faster than revenue.”
He continued by saying that the present government has set up a presidential fiscal Policy and Tax reforms committee as part of its objective to maximise income.
Because President Bola Tinubu has subsequently established a Presidential Fiscal Policy and Tax initiatives Committee, we shall focus on his initiatives in this area.
He said, “Among other things, the committee’s duty is to provide an efficient design and execution of fiscal policy and tax changes for economic success.
Recalls that Adedeji was named chair of FIRS by President Bola Ahmed Tinubu last week.