The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has credited the National Bureau of Statistics’ (NBS) recent recognition of informal work as a major factor in the decline of Nigeria’s unemployment index.
Adedeji disclosed that as of the first quarter of 2023, the informal sector accounted for a staggering 92.6% of Nigeria’s employed population. He made this known on Monday in Ibadan, Oyo State, while speaking at the 157th Board Meeting of the Joint Tax Board (JTB), themed “Taxation of the Informal Sector: Potentials and Challenges.”
Rather than imposing taxes on the sector, Adedeji emphasized the need to support and formalize the contributions of informal workers.
“It is more beneficial to recognize and empower the informal sector than to burden it with taxes,” Adedeji said. “President Bola Tinubu is deeply concerned about the wellbeing of workers in this space and has clearly stated that we should tax the fruits, not the seeds, so as not to destroy what people have worked hard to build.”
The FIRS boss, represented by his Technical Assistant on Media, Sikiru Akinola, urged the 36 state tax board chairpersons present to explore ways to integrate informal businesses into the formal economy through accurate and reliable data systems.
Adedeji also announced that the Joint Tax Board would soon evolve into the Joint Revenue Board (JRB), with broader responsibilities aimed at unifying and modernizing Nigeria’s tax framework.
Commending Oyo State Governor Seyi Makinde for hosting the session, Adedeji described the meeting as crucial to shaping a more inclusive tax policy.
In his remarks, Governor Makinde stressed the need for a humane and strategic approach to expanding Nigeria’s tax base.
“Our objective must go beyond revenue generation. We must empower those in the informal sector to thrive and contribute meaningfully to national development,” he said. “Oyo State remains committed to fiscal responsibility alongside inclusive economic growth. Our recent initiatives are already driving stronger revenue performance.”
The meeting brought together key stakeholders in Nigeria’s tax system as efforts continue to improve compliance, efficiency, and fairness in revenue collection.
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