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FIRS, France Partner On Digital Tax Reform Ahead of Nigeria’s New Service Nomenclature

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

December 11, (THEWILL) — The Federal Inland Revenue Service (FIRS) has signed a landmark cooperation pact with France aimed at modernising Nigeria’s tax administration through digital transformation, capacity development, and improved cross-border enforcement.

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

The disclosure was contained in a statement issued by his Special Adviser on Media, Dare Adekanmbi, on Wednesday

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The agreement, signed at the French Embassy in Abuja, brings FIRS into a formal working partnership with France’s tax authority, Direction Générale des Finances Publiques, one of Europe’s most technologically advanced revenue agencies.

Adedeji said the partnership symbolises a shared ambition to build “stronger, more resilient and forward-looking” tax systems at a time global public finance is being reshaped by technology, artificial intelligence and cross-border digital commerce.

The FIRS chairman listed digital transformation as a central pillar of the pact, noting that Nigeria aims to leverage France’s experience in automated compliance systems, data-driven audits, and taxpayer service platforms

He noted that France stands to benefit from Nigeria’s rapid digital expansion, its youthful and tech-savvy population, and the innovative solutions emerging from Africa’s largest market.

“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.

He added that FIRS will deepen engagements with other global partners as the agency prepares for its evolution into the NRS under the new Fiscal Responsibility and Revenue Administration reforms.

Adedeji highlighted workforce development as another strategic area of collaboration, stating that Nigeria hopes to adopt France’s structured human capital systems, professional standards, and continuous learning culture.

At the same time, he said Nigeria’s experience managing a young, diverse, and fast-paced workforce would offer DGFiP fresh insights into building modern public finance institutions

“Another important aspect is workforce development. 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.

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

“We also anticipate strong bilateral cooperation in international taxation, exchange of information, transfer pricing, and Base Erosion and Profit Shifting BEPS – related work,” he stated.

The MoU also covers cooperation on international taxation, exchange of information, transfer pricing, and tackling Base Erosion and Profit Shifting, a growing concern for governments 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.

The Federal Government is banking on improved digital systems, unified tax administration, and stronger international cooperation to raise revenue without imposing new taxes.

The Tax Act reforms aim to expand the tax base, simplify compliance, improve transparency, and align Nigeria’s tax laws with global standards, especially given the rise of the digital economy, cross-border business, and modern financial instruments.

France is among the global leaders in digital tax reforms, having deployed advanced e-filing systems, algorithm-driven compliance tools, and real-time data analytics in its tax administration.

Adedeji said the pact will serve as one of the cornerstones of Nigeria’s transition into a more transparent, technology-driven revenue service capable of keeping pace with global shifts in 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,” the FIRS boss stated.

In the past decade, Nigeria has struggled with low tax-to-GDP ratios, averaging 6 to 10 per cent, far below the African average of 15 per cent.

The agreement comes barely weeks before the formal transition into the Nigeria Revenue Service by January 2026.

Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.

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