FIRS Seeks Global Reforms to Shield SMEs from Tax Evasion

The Federal Inland Revenue Service (FIRS) has urged global and national leaders to intensify efforts against cross-border economic crimes, warning that tax evasion, abusive transfer pricing, and illicit financial flows undermine fair competition, revenue mobilisation, and long-term economic growth.

Speaking at the 42nd Cambridge International Symposium on Economic Crimes in the United Kingdom, FIRS chairman Zacch Adedeji, represented by Prof. Bolaji Owasanoye, said such practices place compliant businesses, tiny and medium-sized enterprises (SMEs), at a severe disadvantage.

“Illicit financial practices distort fair competition, erode trust in institutions, and deprive countries of the resources needed for development,” he cautioned.

Adedeji explained that President Bola Tinubu’s administration is tackling these threats through sweeping fiscal reforms. In June 2025, four new tax bills were signed into law to modernise Nigeria’s tax framework, close leakages, and align the system with global standards.

He added that FIRS, set to transition into the Nigeria Revenue Service (NRS) in 2026is deploying technology-driven compliance tools, including e-invoicing systems for transaction transparency and AI-powered analytics for tax risk profiling. These, he noted, will simplify compliance for businesses while making tax evasion significantly harder.

“Reforms are not just about boosting revenue collection; they are about levelling the playing field for Nigerian entrepreneurs,” Adedeji said.

He reiterated FIRS’s commitment to working with international organisations and peer countries to combat financial crimes that drain national resources and stifle inclusive growth.