Nigeria Revenue Service pledges support for procurement and tax reforms

The Nigeria Revenue Service (NRS) has announced its commitment to supporting reforms aimed at improving public accountability and taxpayer confidence. NRS Executive Chairman Dr. Zacch Adedeji pledged financial and technical assistance to the Bureau of Public Procurement (BPP) to overhaul the Public Procurement Act 2007. This initiative seeks to reduce the number of abandoned government projects, which Adedeji noted represents a waste of collected tax revenue and future loan obligations.

Separately, the NRS addressed public concerns regarding new tax laws. Ismail Abdullahi, the NRS State Administrator for Jigawa, Kano, and Katsina, clarified that bank credits are not automatically taxable. He emphasized that the nature of transactions must be considered, noting that individuals receiving loans should maintain documentation to prove funds are not earned revenue. The agency is focusing on taxpayer education to reduce misconceptions regarding Value Added Tax (VAT) and the treatment of bank transfers.