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Home Opinion Bite

Zacch Adedeji Reforms Nigeria’s Tax System, Boosts Revenue Collection

Contributor by Contributor
March 9, 2026
in Opinion Bite
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Zacch Adedeji, Executive Chairman of the Nigeria Revenue Service (NRS), has emerged as a key figure in reshaping Nigeria’s tax administration through sweeping reforms aimed at improving efficiency, transparency and revenue generation.

In a country where tax payment has long been viewed with skepticism and government agencies often criticised for bureaucracy, Adedeji is introducing a different approach—treating taxpayers as partners rather than targets. Since assuming office in September 2023, he has led major structural, digital and legislative reforms designed to modernise the nation’s fiscal framework.

Born on January 8, 1978, in Iwo-Ate in Ogbomoso, Oyo State, Adedeji built a strong academic foundation early in life. He graduated with a first-class degree in Management and Accounting from Obafemi Awolowo University, Ile-Ife. He later obtained a master’s degree and a PhD in Accounting from the same institution and also attended programmes at the Harvard Kennedy School in the United States.

Before entering public service, he worked in corporate finance at Procter & Gamble, where he served as Corporate Finance Manager for West Africa. His government career began in 2011 when the late former Oyo State governor, Abiola Ajimobi, appointed him Commissioner for Finance. During his tenure, he introduced the Treasury Single Account in the state, a reform that improved transparency and financial management.

Adedeji later served as Executive Secretary of the National Sugar Development Council and Special Adviser on Revenue to President Bola Ahmed Tinubu before his appointment to lead the nation’s tax agency.

Customer-Focused Tax System

One of Adedeji’s major reforms has been restructuring the tax administration model. Previously, tax operations were organised according to tax types, such as Value Added Tax or Company Income Tax, which often resulted in companies receiving multiple requests from different departments.

Under the new system, taxpayers are categorised based on their business size—large, medium and emerging businesses—making it easier for companies to manage their obligations in one location. Businesses with annual turnover above ₦5 billion are now handled through dedicated offices that allow them to process all tax matters in a single place.

This approach, according to the NRS, has significantly reduced compliance burdens for businesses.

Digital Transformation

Adedeji has also driven major digital innovations aimed at simplifying tax processes and closing revenue leakages.

The TaxPro-Max platform now automates more than 80 percent of previously manual tax processes, improving efficiency and reducing errors. In October 2024, the agency launched a USSD service (*829#) that allows taxpayers to retrieve Tax Identification Numbers, verify tax clearance certificates and check tax information directly from mobile phones without internet access.

In August 2025, the NRS introduced an electronic invoicing system for companies with annual turnover of ₦5 billion and above. Within two weeks of its launch, about 1,000 companies—including major firms such as MTN Nigeria and Huawei—had already joined the platform. The system helps improve transparency and reduce underreporting of transactions.

The reforms have also generated economic opportunities. For instance, Nigerian technology firm Afri Invoice expanded operations and created new jobs across several states to support the growing demand for digital invoicing services.

Tackling Illicit Financial Flows

Alongside improving compliance, Adedeji has focused on curbing illicit financial flows that drain public revenue. The NRS established a Proceeds of Crime Management and Illicit Flows Coordination Directorate to track and recover lost assets.

The agency is also reviewing several international tax treaties that experts say currently allow multinational companies to shift profits outside Nigeria. At the domestic level, the NRS has strengthened collaboration with agencies such as the Economic and Financial Crimes Commission and the Independent Corrupt Practices and Other Related Offences Commission to combat financial crimes linked to tax evasion.

Improved Revenue Performance

Under Adedeji’s leadership, tax revenue has increased significantly. In 2023, the tax agency generated ₦12.36 trillion, exceeding its target. Revenue rose further to ₦21.7 trillion in 2024.

Between September 2023 and August 2025, the service recorded about ₦46 trillion in tax collections, representing roughly 115 percent of its revenue target for the period.

Notably, non-oil taxes now account for about 76 percent of total collections, marking progress in Nigeria’s effort to reduce reliance on oil revenues. The country’s tax-to-GDP ratio has also improved from about 10 percent to 13.5 percent, with a target of reaching 18 percent by 2027.

New Tax Laws and Policy Reforms

Several legislative reforms have also been introduced to simplify Nigeria’s tax system. These include the Nigeria Tax Act 2025 and the Nigeria Revenue Service (Establishment) Act 2025, among others. The new laws consolidate multiple tax regulations into a streamlined framework.

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For citizens and small businesses, the reforms include tax exemptions for small enterprises with turnover below ₦50 million and VAT removal on essential sectors such as food, agriculture, education and public transportation.

Transition from FIRS to NRS

Another major change during Adedeji’s tenure was the renaming of the tax authority from the Federal Inland Revenue Service to the Nigeria Revenue Service, effective January 1, 2026.

According to Adedeji, the new name better reflects the agency’s role in collecting revenue for the entire federation rather than solely for the federal government. For example, about 90 percent of Value Added Tax revenue is shared with states.

Looking Ahead

Despite the progress recorded, challenges remain. Nigeria’s tax-to-GDP ratio still falls below the African average, and a large informal sector remains outside the tax system. However, the NRS leadership says the new digital systems and reforms will make tax evasion increasingly difficult.

Observers say Adedeji’s tenure has redefined how Nigeria’s tax authority interacts with citizens and businesses. By combining technology, institutional reform and stakeholder engagement, he is gradually repositioning the country’s tax system as a driver of national development.

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