The chairman, Federal Inland Revenue Service (FIRS), Zacch Adedeji, has revealed that the recognition of informal work by the National Bureau of Statistics (NBS) has contributed to the drop in Nigeria’s unemployment index.
He revealed that the workforce in the informal sector in Nigeria accounts for about 92.6 percent of the employed population in the country as of the first quarter of 2023.
Speaking on the theme, “Taxation of the Informal Sector: Potentials and Challenges,” at the 157th Board meeting of the Joint Tax Board (JTB) on Monday in Ibadan, Oyo State, Adedeji said it would be better for the country to support and recognize the contributions of the informal sector, rather than taxing them.
He added that the President, Bola Ahmed Tinubu is very concerned about the welfare of workers in the sector.
“President Bola Tinubu has said the focus should be on taxing the fruits and not the seeds so that we don’t kill what people have invested in businesses,” he said.
In a statement by his Technical Assistant on Media, Sikiru Akinola, the FIRS boss charged participants at the meeting, including the 36 states inland revenue board chairpersons to brainstorm on how to bring formality to the informal sector with the use of reliable data.
He explained that JTB would soon transition to the Joint Revenue Board (JRB) with expanded scope and responsibilities that would make tax systems easily harmonised and modernised nationwide.
The FIRS chairman, who doubles as the chairman of the Joint Tax Board, commended the Oyo State governor, Seyi Makinde, for hosting the meeting.
Speaking shortly after Adedeji, Governor Seyi Makinde asked for additional support in the effort to widen the country’s tax net.
“We must not only be strategic but also humane in our approach. The goal should not only be to increase revenue but to support and empower those within the informal economy so they can thrive and contribute meaningfully.
“Our administration is committed to balancing fiscal responsibility with inclusive economic growth. Our recent initiatives have improved our revenue generation drive,” Makinde added.
Informal sector needs support, not additional taxes – FIRS boss
