Dwindling revenue calls for reforms – FIRS boss

The Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, has said the country’s dwindling revenue requires reforms.

Adedeji stated this in Ilesa, Osun State, on Friday while delivering the University of Ilesa 2025 Distinguished Lecture Series titled “Economic Resilience in an Era of Dwindling Revenue”, the first in the series. He said to weather the storm of unstable revenue, the country must embrace reforms anchored on four pillars.

Using Nigeria’s key economic indicators—such as Gross Domestic Product growth, tax-to-GDP ratio, oil revenue share, and debt service to revenue ratio—Adedeji said the country has made progress.

Despite the improvement, he declared that the country’s fiscal condition remained fragile, making rationalised expenditure, expansion of the tax base, and adoption of stronger fiscal rules such as debt ceilings, among others, a necessity.

The FIRS boss also said the country must have a broadened and equitable revenue system. He listed disciplined and transparent public financial management, a diversified economic base, and strong and accountable institutions as additional reforms that must be implemented.

He warned that the country’s revenue situation could not be addressed with half measures or politically expedient actions, but requires strategic foresight, institutional resilience, and intergenerational thinking.

He further said, “One truth stands out: dwindling revenue is not the end of the road; it is a call to reform. Our fiscal pressures are undeniable; debt service obligations are high, traditional revenue sources are evolving, and societal demands are intensifying.

Yet history teaches us that the most resilient economies are not those that avoided hardship, but those that embraced adversity as a catalyst for transformation.

“This moment must not be seen as a crisis to be managed but as an opportunity to reimagine, innovate, and rebuild with courage, clarity, and conviction.”

In addressing the country’s revenue situation, Adedeji said FIRS, under his leadership, has embarked on various initiatives to transform it into a modern, technology-enabled, intelligence-led revenue authority.

Earlier, the Vice Chancellor of Unilesa, Prof. Femi Ashaolu, commended the FIRS chairman for his efforts to redefine the country’s tax system.

Ashaolu also said Unilesa has been recording steady growth on all fronts, adding that it currently runs about 97 NUC-accredited courses.