By Amos Adetunji with Research materials provided by Ilemoboye Oluwakayode aka EKONET.
Growing Revenue exponentially ,targeting the fruits not the seeds ,focusing on wealth enabled by conducive environment , remains the unique principle of the current executive chairman of FIRS
Zacchous Adedeji is ,indeed, a disruptive innovator : a T shaped person with a depth in one area and a breadth in lots , a mega-mind that sets himself hubristic goals in the like of “putting a ding in the universe” . His capability for associating ,questioning, observing, networking and experimenting is what makes him unique . Of course , those are the habits of mind that characterize disruptive innovators.
“He excels at connecting seemingly unconnected things ,aided by his broadening experience ; he is known for constantly asking why things aren’t done differently , a taste that linked to a talent for observation ; he is a great networker and also an inveterate experimenter.”, says Engineer Kunle his classmate at Obafemi Awolowo University.
With those sterling traits , the Executive Chairman of Federal Inland Revenue Service ,FIRS, has, in the last one year, been redefining governance and tax administration in Nigeria
Knowing full well that the Federal Inland Revenue Service (FIRS], occupies a strategic position in this economy as the heart beat of the nation’s economy, Zacchous Adedeji looks poised to reverse the many years of hopelessness relating to certain sub-optimal conditions : low ranking on the ease of paying taxes index, very low Tax to GDP ratio, poor and disjointed adoption of technology , multiplicity of tax audits and revenue agencies , inefficient tax collection process and poor taxpayer service and poor reporting and accountability ,among others .
KEY DRIVERS OF HIS LEADERSHIP AND FOCUS .
One thing that gave him the attention of the people is that he has left nobody in doubt about his mission ,vision and goals for this making agency with some realistic declarations from the day one of his assumption of office .Confirming an unassailable wisdom that would drive his overall agenda , he declared to those who cared to listen : “revenue growth, the lifeblood of a nation’s economy and the means to fulfill essential duties to its citizens,” would be the core principle that would guide the service as he leads it.
But not oblivious of the fact that the country faces a revenue crisis, ,for him , there must be swift and resolute action on the part of the services to reverse this. He equally vowed to ensure the Federal Inland Revenue Service would align with President Bola Tinubu’s Fiscal Policy and Tax Reforms committee in order to shape a prosperous fiscal landscape that empowers the nation’s growth and development , saying he was committed to placing innovation, technology, and fresh ideas at the forefront of the agency operations.
This strategic focus , he said , would empower FIRS to enhance efficiency, fortify against revenue leaks, and bolster coordination and accountability within our organization.
“Our overarching goal , he noted , “is to nurture voluntary tax compliance by establishing the modern, dependable tax system that garners the trust and admiration of stakeholders’’, through this, he hoped to create an environment where taxpayers willingly fulfil their civic duties.”
Under the leadership of Mr. Zacch Adedeji, the Service, he said, would take its enforcement responsibilities judiciously against those who from their tax obligations just as FIRS would implement a robust enforcement model that effectively defers tax evaders while maintaining fairness and transparency in the agency’s processes.
Furthermore , Adedeji declared that “a fundamental aspect of its mission is to elucidate to taxpayers why their civic duty matters. According to him the agency is committed to simplifying its tax system, making it accessible and comprehensible, thereby facilitating voluntary tax payments and fostering a sense of civic responsibility –
Recognizing that data-driven strategies are essential to the agency success,” Mr. Zacch Adedeji also explained that “quality data will be the cornerstone of our operations, enabling us to measure our progress, make informed decisions, and maintain the highest standards of accountability.
Mr. Zacch pledged to maintain an open-door policy, that would actively engage with stakeholders to collaboratively construct a tax administration that is the pride of the nation ; promised the FIRS would aspire to surpass Africa’s average tax-to-GDP ratio of 16.5% and achieve an impressive 18% within three years.
He highlighted the principles that would guide the FIRS under his leadership to include integrity ,confidentiality ,professionalism and fairness.
He said the Service under his leadership would be totally committed to the welfare of staff.. “Your dedication will not go unnoticed, and we pledge to recognise and reward your hard work and dedication. Together, as one united team, we will work tirelessly to secure the prosperity of our nation and the well-being of this nation
Zacchous Adedeji has not disappointed . Despite the challenges earlier highlighted,he has proved that only “little minds are tamed and subdued by misfortune while great minds rise above them”as declared by Washington Irving.
Indeed ,those words, no doubt, have strong inspiration on the Executive Chairman, Federal Inland Revenue Service (FIRS), and have been exploited by him to drive the agency out of the despair and hopelessness he met in the agency to a new status since he assumed leadership.
ADEDEJI IN THE EYE OF ANALYSTS .
For some inspiring financial achievements in the public sector and corporate world, Zacchous Adedeji has already carved a niche for himself .
Those who celebrate him have a good reason for doing so. And even his critics can attest to his sound knowledge, resourcefulness, transparency, hard work and team spirit.
His admirers on the other hand would easily rehash his well known story of doggedness and determination.”When it comes to taxes, there’s one name on everyone’s lips: Zacch Adedeji. As the Executive Chairman of the Federal Inland Revenue Service (FIRS), Adedeji isn’t just following the rules – he’s rewriting them” , Aderonke Ogunleye-Bello, an Award-Winning investigative journalist. 2016 finalist, CNN African Journalist Award Winner ,declared .Adedeji leadership styles remain his another strength .”It’s all about shaking things up and making taxation better for everyone,” the analyst added
Another analyst applauded him too .”He is, indeed, a rare breed, a man of multiple emotional and intellectual universes, and a scion of excellence. He is a champion of the workspace, blessed with a work culture only the most ardent and rigorous can match. He is a man of few words and prodigious talent.”, a financial expert and public analysts , Lanre Onipede declared in an interview with this medium last week . To him ,those and more are his distinguishing features
The Executive Chairman, Federal Inland Revenue Service (FIRS), has ,no doubt , lived up to those expectations. He is proving to be a game changer resolving all the outstanding issues of poor performance and incompetence , squaring up with like-minded professionals to deliver world class performance
The current leadership of the FIRS in order to address the identified challenges began the journey by conducting a comprehensive assessment to determine what is working, what to improve and what to discontinue. . All these effotrs have ,indeed paid off .
HIS CRITICAL SUCCESS AREAS
Supersonic Growth
Financially, the results speak volumes. FIRS not only exceeded its 2023 revenue goal of N11.55 trillion by collecting a remarkable N12.36 trillion, but it also set a new record in the first quarter of 2024 with N3.94 trillion. This achievement represented a 56 percent increase from the previous year, showcasing the chairman’s exceptional skill in driving revenue growth and establishing new performance milestones .
FIRS has a N19.4 trillion tax revenue target for 2024, a mark the chairman, Dr Zacch Adedeji, said is achievable with an effective tax collection system in place in a viable economic environment for businesses to prosper
This target is nothing but fantastic. With this target , Accountant-General of the Federation (AGF), Dr. Oluwatoyin Madein, affirmed that FIRS now accounted for about 70 per cent of the country’s total revenues, adding that a lot of tax revenues are still left uncollected and there is need to expand the current tax base. for Africa.
Why Growing Tax is Expedient.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the country must focus on domestic revenue mobilisation to fund its budget. Edun said amid the current economic realities, exploring expensive debts was not good for the country.
He said the President Bola Tinubu administration remained committed to actualising a 77 per cent increase in domestic revenue mobilisation to assist in funding critical infrastructure, especially healthcare and education.
Edun said while tax revenue remained crucial, the issues around increase in government revenue deserved attention, adding that federal government owned enterprises must do more to augment the current fiscal position of government going forward.
While commending the FIRS chairman and his team for exploring options to boost collection, Edun stated that the country’s tax revenue, as a percentage of GDP, remained low at 10 per cent, compared to other African countries and the developed world, in general.
He said though FIRS met and surpassed its target for last year, additional efforts were still needed to measure up to the challenge this year.
He challenged the FIRS management on public trust, and accountability to the people regarding tax collection.
Edun, “Bear in mind that in order to maintain and build confidence and public trust, what the taxpayers want to see is that their money is faithfully collected as it should be and properly spent and accounted for with minimal excess wastes and leakage. They deserve it and I believe you’ll give it to them.”
He said the emphasis of the current administration was to grow the economy, adding, “Given what is going on around the world, even a high and elevated and sustained increase in interest rates, borrowing is not the way to go.
“The emphasis is on IGR, domestic resource mobilisation, and equity as opposed to debt.”
Reinventing the Workforce
Recognizing the importance of teamwork in revenue generation, Adedeji has built a skilled and diverse team at FIRS. Each team member and his support staff brings valuable expertise, contributing to the organization’s success. Under Adedeji’s leadership, a culture of excellence has flourished, with every team member playing their role in meeting FIRS’s revenue targets.
RAISING THE WORKERS SALARY
Raising the salaries of FIRS staff by 60 percent was another achievement under Dr. Zacch’s leadership. This wasn’t just about rewarding employees. He understood that a thriving workforce is the backbone of any successful organization. By investing in the people behind the scenes, the FIRS boss created an environment where employees felt valued and motivated, leading to improved performance and setting a new standard for efficiency within the agency .
His Principles of Taxation.
His principles of taxation, which an analyst could translate to a pathway to Nigeria’s economic growth is one of the rare traits that set apart from the crowd ..
Adedeji’s principles of taxation that embody some of the normative principles of taxation which are certainty, flexibility, equity, simplicity, and utmost good faith caught the attention of Abdullahi Ahmad, a public servant “At every given forum, Adedeji does not fail to reify his wholesome principles of taxation.He is the one to say, “We will tax the fruit, not the seed. We will tax prosperity, not poverty” ,he noted .
For him ,”these are statements of certainty, and equity, which are altogether refreshing and reassuring” .According to Abdullahi “the reassurance in his statements is underlined by his insistence that his tax principles are focused on encouraging taxpayers to grow their investments or income so that they can yield enough taxable dividends or profits.
In his philosophical best, Adedeji compares taxpayers to gardeners and the taxman as one who waters the garden. He says it is the duty of the government to create an environment conducive to taxpayers and their businesses to thrive, in the hope that once they have a fulsome yield, they will gladly pay their taxes. That is why he says the taxman is not aiming to tax poverty but prosperity.
Adedeji’s principles of taxation anticipate economic boom and discourage tax hikes in times of economic depression. The flexibility principle provides that the amount of tax charged should not be the same all year round and that tax rates should be lowered for other social benefits during an economic boom, while during economic depression, tax rates may be raised to raise maximum funds for developmental projects.
Adedeji’s taxation principle does not support tax hikes that will become a burden on the taxpayers or the citizenry. Thus, it is obvious that Adedeji’s taxation principle takes cognisance of the fact that taxation is the lifebuoy of the economy and the fecund source of economic development. It follows then that when taxes are collected and properly utilised in grooming businesses, empowering citizens through access to low-interest loans and grants, diversification of business activities like the creation of value chains, and provision of critical social amenities, there will be enough income in the pool to tax.In other words, there will be enough fruit to pick from.
To translate his dream to reality, the Federal Government had taken the right step in the right direction by establishing the Consumer Credit Scheme which guarantees access to loan facilities for the citizenry to grow their business activities. The logic is that once there is a boom in economic activities in the informal sector of the economy, there will be a corresponding widening of the tax net without complaint from the tax-paying community.
It is this veritable connection between taxation and economic growth that Adedeji’s principles of taxation seek to highlight, making them the pathway to Nigeria’s economic growth.
In concrete terms, Adedeji’s unwavering commitment to expounding his taxation principles has already raked in more than N3tn in tax revenue in the first quarter of 2024 for the three tiers of government in aid of the execution of the Renewed Hope Agenda of President Bola Tinubu.
Corporate Re-Organisation.
In addition to raising this much revenue, Adedeji has also reorganised the structure of the service to reflect his taxation principle of customer-centricity. He believes that taxpayers should form the focal point of the operations of the service, and in that regard, they should be treated with due diligence.
Presently, the service is structured based on the category of taxpayers: Large Taxpayers Group, Medium Taxpayers Group, and Small Taxpayers Group; as well as five other services groups, viz, Corporate Services Group, People Services Group, Support Services Group, Compliance and Enforcement Support Group, and the Special Duties. This taxpayers-based operational categorisation is purposely to simplify tax payment processes, which is made more so by the introduction of various automation platforms.
Making Taxation Pivot Of National Development
And so, it is always both refreshing and reassuring to listen to how Adedeji marshal his thoughts around the issue of making taxation the pivot of national development.
” He often couches his statements in literal parallelism, metaphor and humour. This rare gift sets him apart as a conscientious taxman. Beneath his jocular mien lies a determination to set Nigeria’s fiscal trajectory and tax system on the pathway of sustainable economic growth” , Abdullahi explained further .
System Efficiency And Effectiveness
His tireless efforts have brought much-needed sanity and restructuring to the system by making it more efficient and adequate.
Adedeji’s commitment to reforming the tax system has resulted in streamlined processes, enhanced transparency, and improved taxpayer compliance.
His relentless drive to create a more efficient and user-friendly tax environment has been important in transforming FIRS into a modern, responsive institution that serves the best interests of all Nigerians.
A key aspect of Adedeji’s leadership is his adherence to due process. He understands the importance of following rules and regulations meticulously for optimal system functioning.
Adedeji ensures that all FIRS operations comply with legal and regulatory standards, promoting integrity and accountability within the organization
Due Process and Cost Optimization
. By upholding due process, he has built confidence among taxpayers and stakeholders, reinforcing FIRS’s legitimacy and credibility. This commitment to procedural correctness has been crucial in establishing a robust and trustworthy tax administration system.
In an era where public sector spending often comes under scrutiny, Adedeji stands out for his prudent management of resources. He has made personal sacrifices to cut unnecessary spending, opting to use his personal vehicles and live in his own house rather than utilizing government resources.
This approach not only demonstrates his dedication to reducing waste but also sets a powerful example for others in public service. By curtailing excessive spending, Adedeji ensures that FIRS’s resources are directed towards initiatives that enhance efficiency and service delivery, ultimately benefiting the nation’s economy.
Transparency
These changes promise a more transparent tax system, potentially boosting public services and economic growth.
The Tax Boss’s firm belief in fairness, accountability, and patriotism shapes his leadership at FIRS. With a strong sense of duty and commitment to Nigeria’s welfare, he aligns his approach with President Bola Ahmed Tinubu’s Renewed Hope agenda for economic revival and prosperity.
By prioritizing ethical standards and fostering trust among taxpayers, Adedeji ensures FIRS operates with integrity, contributing significantly to Nigeria’s financial health and stability
DRAMATIC TURNAROUND
One year can feel like a flash, but in the hands of a leader like the Executive Chairman of the Federal Inland Revenue Service (FIRS), Dr. Zacch Adedeji, it becomes the foundation for lasting change.
The tax boss has taken Nigeria’s tax administration from business as usual to record-breaking heights. The past 12 months have not only reshaped the agency but also set the stage for a brighter economy for Nigerians.
When Adedeji took over the affairs of FIRS on September 15, 2023, the agency was ready for change, but perhaps not even the most optimistic could have predicted the sweeping reforms the tax boss would implement. His approach was clear from the start: if Nigeria were to compete on a global scale, it needed an efficient, transparent, and people-focused tax administration system. And as expected, he made that happen.
Adedeji’s first major move was the complete restructuring of the FIRS. His vision wasn’t just about meeting revenue targets; it was about building a system that worked seamlessly for the government and, more importantly, for the people.
Under his guidance, the agency has become more cohesive, adaptable, and driven by cutting-edge technology. The move towards a data-driven and customer-centric approach has redefined how tax operations are conducted, bringing in efficiency and transparency that were previously lacking
. Zacch Adedeji: Driven By Exceptional Intellectual Base And Experience.
Zacch Adedeji ,a quintessential , brilliant and consummate manager of men maintains his winning streak at FIRS as the executive chairman has a long history of superlative performance . For many years, he bestrode both public ad private sectors like a colossus . But in all of these, Zacch Adedeji’s success is strongly tied to his good education, team spirit and work ethic.
Zacch’s academic achievements are equally outstanding, these include an M.Sc. (Hons) in Accounting, a B.Sc. (Hons) in Management and Accounting, and a National Diploma in Accountancy. His commitment to excellence is evident through his consistent top-of-class performance in all academic pursuits.
Mr. Adedeji takes pride in his distinction as a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and his esteemed membership of the Chartered Institute of Taxation of Nigeria. His professional journey was further enriched by his completion of executive programs at the Harvard Kennedy School, where he acquired expertise in leadership, public policy, and economic development.
Additionally, he successfully undertook specialized training in Internal Controls and Stewardship, Finance and Accounting, and SAP. Mr. Zacch Adedeji’s unwavering commitment to excellence rightfully earned him numerous accolades, which include the prestigious Fellowship of ICAN, the Award for Excellence in Financial Management by the Nigeria Institute of Management, the Outstanding Young Professional Award by the Nigeria Economic Summit Group, and the esteemed recognition as the Best Graduating Student in the Department of Management and Accounting at the Obafemi Awolowo University, Ile Ife.
Mr. Zacch Adedeji stands out as a distinguished executive celebrated for his financial expertise, operational prowess, and unwavering dedication to excellence. His visionary leadership has consistently propelled the organizations where he had had a stint towards success and fostered efficiency and profitability.
Adedeji had an impressive career trajectory. He worked at Procter & Gamble Company (P&G) later becoming a Manager.
He became a Commissioner for Finance, in Oyo State during the period from 2011 to 2015 under Governor Abiola Ajimobi’s administration.
Beyond his public service, Mr. Adedeji is the co-founder and managing partner of RTR, a financial consulting firm that offers financial advisory and policy development services to public administrators and private institutions in West Africa
An astute accountant, corporate tax and public finance development expert, the 45-year old Iwo Ate, Oyo State-born technocrat comes to the FIRS with loaded credentials.
As stated, he was first appointed as the Special Adviser to the President on Revenue Generation in July 2023..He later occupied the position of Executive Secretary of the National Sugar Development Council (NSDC).
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