Informal Sector Needs Support, Not Additional Taxes –  FIRS Chairman

Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has attributed the recent decline in Nigeria’s unemployment index to the recognition of informal work by the National Bureau of Statistics (NBS).

According to Adedeji, workers in the informal sector now make up approximately 92.6 percent of the country’s employed population as of the first quarter of 2023.

Speaking in Ibadan, Oyo State, during the 157th Board Meeting of the Joint Tax Board (JTB) on Monday, Adedeji addressed the theme, “Taxation of the Informal Sector: Potentials and Challenges.” He emphasized that rather than impose taxes, the government should focus on supporting the informal sector and acknowledging its vital role in the economy.

He also noted that President Bola Ahmed Tinubu remains committed to improving the welfare of workers in the informal space.

“President Bola Tinubu has said the focus should be on taxing the fruits and not the seeds so that we don’t kill what people have invested in businesses,” Adedeji said.

In a statement issued by his Technical Assistant on Media, Sikiru Akinola, the FIRS boss urged participants—including chairpersons of the 36 states’ internal revenue boards—to collaborate on formalising the informal sector using dependable data tools.

Adedeji also disclosed that the Joint Tax Board will soon evolve into the Joint Revenue Board (JRB), a transition that will widen its responsibilities and help streamline and modernize Nigeria’s tax system.

As the current chairman of the JTB, Adedeji commended Oyo State Governor Seyi Makinde for hosting the meeting and supporting the broader tax reform agenda.

Governor Makinde, speaking shortly after Adedeji, echoed the need for a thoughtful and compassionate approach to taxation.

“We must not only be strategic but also humane in our approach. The goal should not only be to increase revenue but to support and empower those within the informal economy so they can thrive and contribute meaningfully,” he said.

“Our administration is committed to balancing fiscal responsibility with inclusive economic growth. Our recent initiatives have improved our revenue generation drive,” the governor added.