FIRS Vows to Strengthen Tax Policy in West Africa

The Federal Inland Revenue Service (FIRS) has pledged to strengthen tax policies across West Africa, aiming to boost revenue generation, enhance compliance, and create a more transparent tax system in the region. The commitment was made during a regional tax conference, where officials emphasized the need for collaboration among West African nations to improve tax administration and curb revenue leakages.

With many economies in the region facing financial challenges, FIRS stressed the importance of harmonizing tax policies to prevent tax evasion, promote cross-border trade, and attract foreign investment. The agency highlighted the digital economy as a key area requiring regulatory attention, particularly with the growing presence of multinational tech firms and e-commerce platforms that operate across borders.

FIRS also outlined plans to modernize tax collection through technology-driven solutions, making it easier for businesses and individuals to comply with tax regulations. This includes expanding electronic tax payment systems, improving data sharing among regional tax authorities, and increasing taxpayer education to enhance voluntary compliance.

Additionally, the agency reiterated its support for a unified tax framework within the Economic Community of West African States (ECOWAS), which aims to establish standardized policies that ensure fair taxation across member countries. Strengthening tax administration at a regional level is expected to help governments increase domestic revenue, reduce reliance on external borrowing, and drive economic growth.

As one of the largest economies in West Africa, Nigeria’s efforts to reinforce tax policy could set a precedent for other nations in the region. By fostering greater collaboration and implementing innovative tax reforms, FIRS hopes to create a more sustainable and efficient tax system that benefits both governments and taxpayers.