Lagos Chamber of Commerce Calls on FIRS to Strengthen Digitalisation for Enhanced Tax Efficiency
The Lagos Chamber of Commerce and Industry (LCCI) has called on Nigeria’s Federal Inland Revenue Service (FIRS) to significantly boost its technology infrastructure to improve operational efficiency and drive compliance, particularly within the country’s substantial informal sector.
Speaking at the FIRS Special Day during the Lagos International Trade Fair, themed ‘Connecting Businesses, Creating Value’, LCCI President Gabriel Idahosa advocated for a modernised approach to tax administration, one that leverages analytics, artificial intelligence, and advanced digitalisation to create a more seamless and efficient tax system.
Idahosa emphasised that FIRS could gain substantial benefits by engaging trade associations and fostering partnerships to educate informal sector players on tax responsibilities. “Collaboration within these segments could build a sustainable culture of compliance,” he stated. The LCCI President also noted that enhancing outreach through technology could help the agency target compliance initiatives more accurately and efficiently, ensuring that tax obligations are met without placing undue burdens on businesses.
To this end, Idahosa recommended an accelerated investment in analytics and AI, which he said would allow FIRS to predict revenue patterns, monitor emerging trends, and enforce strategic compliance measures. Pointing to Rwanda’s success in fully digitalising its tax agency, he argued that adopting a similar model could bring a host of advantages to Nigeria, from cost reduction to streamlining tax processes, all while making the system more accessible to taxpayers nationwide.
“Effective tax governance is fundamental to the ease of doing business,” Idahosa stressed. “Businesses require the support and cooperation of regulatory bodies like FIRS to compete in a challenging economy.”
The LCCI President commended FIRS Executive Chairman, DrZaccheaus Adedeji, for his commitment to institutional reforms that have transitioned FIRS from a traditional tax collector to a comprehensive service provider. Idahosa urged FIRS to continue integrating technology to simplify the tax payment process and boost compliance over time.
Additionally, Idahosa highlighted persistent challenges within the tax system, including the complexity of tax computations, bureaucratic payment processes, and the multiplicity of taxes across federal, state, and local levels. He called for FIRS to address these issues, noting that many businesses face challenges related to tax regulations and the lack of streamlined processes across revenue agencies.
The LCCI’s proposals come amid broader efforts to foster a business environment that is not only supportive but also structured in ways that minimise friction between regulatory demands and operational agility.
