A radical transformation of Nigeria’s fiscal infrastructure is underway. With the Federal Inland Revenue Service (FIRS) set to become the Nigeria Revenue Service (NRS) in January 2026, the agency has secured a vital international alliance.
To underpin this transition, officials have signed a groundbreaking Nigeria-France tax partnership. The agreement focuses on deploying artificial intelligence and automation to aggressively boost government revenue.
FIRS Chairman Zacch Adedeji formalized the pact in Abuja alongside French Ambassador Marc Fonbaustier.
Powering the Nigeria-France Tax Partnership
The FIRS is racing to modernize its operations before the rebranding takes effect next month. This new collaboration with France’s Direction Générale des Finances Publiques (DGFiP) is the technological cornerstone of that effort.
Adedeji aims to build a trusted, innovative institution by adopting systems that have proven successful in Europe.
Specifically, the agency wants to utilize French expertise in three critical sectors:
- Artificial Intelligence (AI): Deploying algorithms to predict non-compliance.
- Data-Driven Audits: Using big data to identify discrepancies.
- Automated Compliance: Streamlining e-filing processes.
France is globally recognized for its digital tax administration. Consequently, Nigerian regulators hope to replicate this efficiency, increasing revenue generation without necessarily raising tax rates.
Combating Cross-Border Fraud
Beyond software, the Memorandum of Understanding (MoU) addresses the complex reality of the global economy.
Multinational corporations often exploit loopholes to move profits to low-tax jurisdictions. Therefore, the Nigeria-France tax partnership establishes a rigorous framework to fight Base Erosion and Profit Shifting (BEPS) and manage Transfer Pricing risks.
“As economic activities become increasingly borderless, the ability of both our institutions to collaborate, share intelligence and harmonise approaches will be crucial,” Adedeji stated.
This crackdown is essential for fiscal stability. Currently, Nigeria’s tax-to-GDP ratio hovers between 6 and 10 percent. This is alarmingly low compared to the African average of 15 percent.
A Mutual Exchange of Talent
While Nigeria adopts French technology, the relationship is designed as a two-way street.
The deal includes provisions for human capital exchange. Adedeji highlighted that Nigeria’s “young, dynamic and diverse workforce” offers a unique perspective that can benefit the European agency.
Ultimately, both nations intend to strengthen their institutional cultures to better face modern threats, from cyberattacks to complex international evasion schemes.
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