FIRS, France Partner On Digital Tax Reform To Strengthen Nigeria’s Revenue System

The Federal Inland Revenue Service (FIRS) has entered into a strategic partnership with the French government to modernise Nigeria’s tax administration through digital transformation, capacity building, and enhanced cross-border cooperation.

The landmark agreement, signed at the French Embassy in Abuja, came just weeks before the FIRS transitions into the Nigeria Revenue Service (NRS) in January 2026.

FIRS Chairman, Dr. Zacch Adedeji, and the French Ambassador to Nigeria, Marc Fonbaustier, signed the memorandum of understanding (MoU) on behalf of both countries.

According to a statement issued on Wednesday by the Special Adviser on Media to the FIRS Chairman, Dare Adekanmbi, the partnership brings Nigeria into a formal working relationship with Direction Générale des Finances Publiques (DGFiP), France’s tax authority, widely regarded as one of Europe’s most technologically advanced revenue agencies.

Adedeji described the pact as a “symbol of shared ambition” to build “stronger, more resilient, and forward-looking tax systems” amid the growing influence of technology, artificial intelligence, and cross-border digital commerce on global public finance.

He emphasised that digital transformation would be a central pillar of the cooperation, noting that Nigeria hopes to learn from France’s success in deploying automated compliance systems, data-driven audits, and taxpayer service platforms.

“This two-way exchange is essential as both countries adapt to emerging challenges such as artificial intelligence deployment, cybersecurity, and cross-border taxation,” Adedeji said.

The FIRS boss added that France also stands to gain from Nigeria’s rapid digital expansion, youthful and tech-savvy population, and the innovative solutions emerging from Africa’s largest economy.

Adedeji further highlighted workforce development as another strategic focus of the collaboration.

“While we look forward to learning from France’s well-structured human capital systems, particularly in professional standards, continuous learning, and organisational discipline, we also believe that our experience in managing a young, dynamic, and diverse workforce will offer valuable insights to DGFiP,” he stated.

“Together, we can develop models that strengthen institutional culture, build global competencies, and prepare our respective institutions for the future of public finance administration.”

The MoU also covers cooperation in key international taxation areas, including the exchange of information, transfer pricing, and tackling Base Erosion and Profit Shifting (BEPS), a growing global concern as businesses increasingly operate across borders.

“As economic activities become increasingly borderless, the ability of both our institutions to collaborate, share intelligence, and harmonise approaches will be crucial,” Adedeji noted.

Over the past decade, Nigeria’s tax-to-GDP ratio has averaged between 6 and 10 per cent, significantly lower than the African average of 15 per cent. The Federal Government hopes that digital reforms, unified tax administration, and stronger international partnerships will help boost revenue generation without imposing new taxes.

The ongoing tax reforms aim to expand the tax base, simplify compliance, improve transparency, and align Nigeria’s tax laws with global standards, particularly in response to the growth of the digital economy and cross-border business.

France is regarded as a global leader in digital tax innovation, having implemented advanced e-filing systems, algorithm-driven compliance tools, and real-time data analytics across its tax administration.

Adedeji expressed optimism that the partnership would serve as a cornerstone of Nigeria’s transition into a transparent, technology-driven revenue service capable of meeting the challenges of modern taxation.

“As Nigeria moves into the era of the Nigerian Revenue Service, we see this partnership as a foundation for building a modern, trusted, innovative, and globally connected revenue administration,” he said.