By Lere Olayinka
When on June 15, 2023, President Bola Tinubu made his first few appointments and Zacheuos Adedeji was announced as the Special Adviser on Revenue, it was clear to discerning minds that the next Chairman of the Federal Inland Revenue Service (FIRS) had been unveiled.
Three months after serving as Special Adviser to the President on Revenue, the final destination of Zacheuos Adedeji was pronounced. He will be moving to the FIRS as Chairman, thus living up to his name; “Zacheuos The Tax Collector.”
Twelve months after taking charge as the Nigeria’s Tax Man, things are beginning to look up for the country in terms of diversification of the nation’s revenue from oil.
By the end of 2023, non oil revenue had increased by 67 per cent, with more than 170,000 new taxpayers and 20 per cent increase in tax compliance recorded as at June, this year.
The rise in the number of taxpayers was occasioned by the emergence of more businesses, companies, and industries in the country, as well as simplification and unification of the tax payment system.
Before now, there used to be Tax Duty and Value Added Offices, among others, with taxpayers having to visit different offices to fulfil their tax obligations.
Today, taxpayers no longer need to visit FIRS offices. With the click of a button, all tax payments can be made.
Adedeji’s leadership of the FIRS simplified tax processes and payments nationwide, making them more convenient and reducing the cost of compliance and administration.
His less than four months in office before the end of 2023 saw to the surpassing of the government’s target of N11.5 trillion by N800 billion. A total of N12.3 trillion was generated in 2023, exceeding the government’s target by seven per cent.
With a target of N19.4 trillion set for the FIRS in 2024, a sum of N3.94 trillion was generated between January 1 and March 31, compared to N2.52 trillion generated during the same period in 2023. For instance, Value Added Tax (VAT) collection rose by 19.21 per cent in the first quarter of 2024 to N1.43 trillion.
However, despite this performance, the revenue fell short of the quarterly target set by the FIRS, which was N4.8 trillion. This notwithstanding, the Nigeria’s Zacheuos, is confident that the N19.4 trillion target is achievable and he is not relenting. He is walking the talk.
In the words of Adedeji, “The new target is achievable because of an effective tax collection system and a viable economic environment for businesses to prosper.
“What determines whatever we have comes from micro-economic indices because when the economy runs well, we are going to be taxing prosperity, not poverty.
“We will focus on the fruits and not the seeds. We need to ensure we have that viable economic environment that will lead to economic prosperity. And for us at FIRS, it is just to put the system in place to aid effective collection.
“We are not a revenue-generating agency, but a revenue-collection agency. With the plan of President Bola Tinubu to rejuvenate the economy, companies are going to grow and prosper.
“We have therefore resolved to create an environment of growth by removing every obstacle in the way of corporate entities and ensure a tax administration that is friendly, customer-centric, and ready to help businesses to bear more fruits.”
Already, substantial growth is being witnessed in other revenue sources such as VAT, Import Duty, and the Ecological and Mining Tax Levies (EMTL), along with the Common External Tariff (CET) Levies.
For instance, in June, out of the gross statutory revenue of N1.432 trillion, a total of N562.685 billion was available from VAT, which was higher than the N497.665 billion available in May by N65.020 billion.
The statutory revenue of N1.432 trillion was also higher than the sum of N1.223 trillion received for May by N208.773 billion.
While Petroleum Profit Tax (PPT), Royalty Crude, Rentals, and Customs External Tariff levies (CET) decreased considerably, Companies Income Tax (CIT) and VAT increased significantly while Import and Excise Duties and the EMTL increased marginally.
But with all these and his determination to raise the revenue bar of the country to such a level that oil revenue will become less significant, will Adedeji be the first tax collector to be loved by the people? I doubt.
In the New Testament of the Bible, the occupation of tax collector was looked down upon by the general populace. Even Mathew, one of the disciples of Jesus Christ was unpopular and distrusted by most of his fellow Jews because he was a tax collector.
Hence, from the tax collectors of ancient Israel to the present day ones, the tax man will most probably not stopped receiving scorn and contumely.
Reason is, no one likes to pay money to the government. Therefore, it is natural for those who collected the taxes for government to bear the brunt of much public displeasure.
However, it appears this Zacheuos of Nigeria is not unmindful of the main hazard of his job as a tax man, and he is simply carrying on with the task of putting the country on the strongest pedestal in terms of generation of revenue. He sure hopes that one day, Nigerians will hear his name and what will come to their minds will be “that’s the Zacheuos who made our country less dependent on oil revenue.”
Olayinka, a journalist writes from the topmost part of Oke Agbonna in Okemesi Ekiti
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