The Executive Chairman of the Federal Inland Revenue Service (FIRS), Zaccheus Adedeji, has received the Excellence in MSME Tax Policy Intervention & Regulatory Support award.

This accolade was bestowed during the inaugural Annual MSME Finance Awards, held on Friday, September 27, 2024, at the Civic Centre in Victoria Island, Lagos.

Although Adedeji could not attend the event personally, he was represented by Collins Omokaro, Special Adviser on Communications and Advocacy at FIRS.

The award, co-hosted by Nairametrics and The Economic Forum Series, aims to acknowledge and honor innovative approaches and the significant contributions of financial sector participants, non-financial institutions, and non-state actors in supporting MSMEs and promoting financial development.

Adedeji’s recognition underscores his exceptional work in developing tax policies that facilitate the growth of micro, small, and medium enterprises (MSMEs), particularly by simplifying their compliance with tax obligations.

Keynote Address: Unlocking MSMEs’ Potential for Tax Revenue Growth  

In a keynote address presented by his special adviser on Communications and Advocacy, Collins Omokaro, titled “Harnessing the Potential of MSMEs for Tax Revenue Enhancement in an Evolving Policy and Regulatory Landscape,” Zaccheus Adedeji highlighted the crucial importance of MSMEs in the Nigerian economy.

Referencing statistics from the United Nations Industrial Development Organization (UNIDO), he pointed out that MSMEs represent over 90% of the nation's businesses, significantly contributing to job creation and economic diversification.

Nevertheless, he remarked that their capacity to boost tax revenue remains largely unexploited, hindered by obstacles such as limited access to financing, burdensome regulatory compliance, and challenges in adopting new technologies.

Adedeji emphasized the Federal Inland Revenue Service's (FIRS) dedication to clarifying taxation for micro, small, and medium enterprises (MSMEs) through educational initiatives and simplified registration procedures.

He underscored the necessity of creating a supportive environment for these businesses, stating, “To realize this potential, we need to implement a comprehensive strategy that eases tax compliance and offers growth incentives, ensuring our tax policies are fair and just.”

A significant highlight from his address was the ongoing initiative to raise the tax exemption threshold for small businesses, which would enable a greater number of MSMEs to take advantage of these essential incentives.

He mentioned that this proposal is presently under consideration by the National Assembly, and its endorsement would alleviate the financial pressures on MSMEs, allowing them to prosper in a changing regulatory landscape.

Additionally, he outlined important government programs designed to assist small businesses, including exemptions from Company Income Tax and Value Added Tax (VAT) for entities classified as small under the Company Income Tax Act.

A central theme of his address was the role of technology in simplifying tax compliance for MSMEs.

Moreover, Adedeji urged businesses to utilize digital platforms like YouTube, Instagram, and WhatsApp to broaden their reach and improve tax contributions.

He pointed out that the digitization of tax administration is a crucial initiative by FIRS, aimed at reducing administrative burdens and enhancing the transparency of compliance processes.

As he articulated, “This shift in tax administration through technology will facilitate easier compliance for MSMEs while lessening the administrative challenges they encounter.”

In closing his keynote speech, the FIRS chairman advocated for stronger partnerships among government agencies, financial institutions, and the private sector to establish a robust ecosystem that nurtures MSMEs.

He conveyed assurance that these collaborative initiatives would empower MSMEs to flourish and play a more substantial role in enhancing Nigeria's tax revenue growth.