Tax Reform: Only 5% of Nigerians will Pay Tax, says FIRS Boss

Executive Chairman, Federal Inland Revenue Service (FIRS) Dr Zacch Adedeji yesterday revealed that 95 per cent of Nigerians will pay no tax under the new tax regime.

He added that the new tax system would fairly affect the high-heeled in the country.

The FIRS chief spoke in Ilorin, Kwara State shortly after he received an award from the University of Ilorin Alumni Association.

He said the “focus will be on those at the top of the pyramid.”

He said from January next year, FIRS would have a name change.

Represented by Prof Abiola Sanni (SAN), the FIRS chairman said: “from January 2026 FIRS will have a name change. Is it going to be a new wine on old bottle? No. Looking at our revenue challenges that we face as a nation and our consistent ranking in terms of tax to GDP ratio, we must create new approaches to taxation.

“I want to assure you that the tax system that is about to debut in January 2026 is a tax player-friendly one. It is one that is business-friendly. I daresay that there has never been a reform of taxation in this country that is this transformative and business-friendly.

“Let me explain in case there are doubting Thomases among us, the tax system in the past used to focus on the people at the bottom. And what do I mean I that both it affected those at the informal sector and those in paid employment.

“Under the new emerging tax system, 95 per cent of Nigerians will pay no tax. Whether you like it or not those whom God has blessed and those benefiting from the economy but have not been paying their own fair share of the tax burden will be now be made to do so.

“Like I said they will be made to do so fairly. In some countries whereas the tax rate may be as high as 50 per cent, but in Nigeria after the deduction of all the deductibles from the ‘big boys and big girls the tax will only be 25 per cent of what they earn.

And we need this to develop infrastructure, provide education, revamp the system. Without a good tax system we are going nowhere as a country.

“Finally you should be on the lookout for a new tax institute. We are changing the name to also signpost the fact that FIRS is not a federal institution now.”