Yemisi Izuora
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has credited the Federal Inland Revenue Service (FIRS) for ensuring the fiscal sustainability of Nigeria’s federal, state, and local governments.
Speaking in Abuja during the inauguration of a joint FIRS-RMAFC Technical Committee, RMAFC member and Chairman of the Inland Revenue Monitoring Committee (IRMC), Bimbo Kolade, described FIRS as a vital pillar in Nigeria’s revenue system.
According to a statement by Sikiru Akinola, media aide to the FIRS chairman, Kolade noted that consistent tax collections by FIRS—primarily Value-Added Tax (VAT) and Companies Income Tax (CIT)—have enabled all tiers of government to plan and execute projects with reliable revenue. In 2024, tax revenue accounted for around 65% of funds shared monthly at the Federation Allocation Account Committee (FAAC), surpassing contributions from crude oil sales.
Kolade praised FIRS Chairman, Dr. Zacch Adedeji, for his leadership since taking office in September 2023. He highlighted Adedeji’s role in driving tax reforms and resolving initial disagreements with RMAFC over issues such as VAT distribution.
“If not for the great work Dr. Adedeji has done, Nigerians would have felt the economic challenges even more sharply,” Kolade said. “His commitment has truly made a difference.”
He added that the IRMC is tasked with overseeing tax inflows to ensure proper remittance into the federation account. “Our duty at RMAFC includes monitoring agencies like FIRS to guarantee transparent and accurate revenue reporting,” Kolade said.
In his remarks, Adedeji emphasized the importance of the collaboration between FIRS and RMAFC in maintaining Nigeria’s fiscal architecture. “While FIRS collects non-oil revenue, RMAFC ensures it is properly monitored, accounted for, and fairly distributed,” he said.
He described the partnership as one built on mutual respect, professionalism, and a shared vision for Nigeria’s economic future. “As we move toward reducing our reliance on oil, the roles of both institutions become even more crucial,” Adedeji noted.
Adedeji also highlighted successes from their collaboration, including better revenue forecasting, improved accountability, and data verification. However, he acknowledged the need for deeper integration and coordination.
“To enhance our cooperation, we need a structured framework that eliminates duplication, clarifies roles, and promotes regular communication,” he said. “Joint strategy meetings, shared analytics, and digital integration will ensure we work smarter and more effectively.”