Nigeria, France Seal Deal To Drive Digital Tax Transformation

The Federal Inland Revenue Service (FIRS) has entered into a major cooperation agreement with the French government to accelerate the digital transformation of Nigeria’s tax administration, enhance institutional capacity and strengthen cross-border tax enforcement.

The pact comes just days before the country’s planned transition from FIRS to the Nigeria Revenue Service (NRS) in January 2026.

FIRS Chairman Zacch Adedeji and the French Ambassador to Nigeria, Marc Fonbaustier, signed the memorandum of understanding (MoU) at the French Embassy in Abuja.

The agreement formalises a partnership between FIRS and France’s Direction Générale des Finances Publiques (DGFiP), one of Europe’s most technologically advanced tax authorities.

In a statement released by Adedeji’s Special Adviser on Media, Dare Adekanmbi, the FIRS chairman said the cooperation reflects a shared ambition to build stronger, more resilient and future-focused tax systems at a time when global public finance is being reshaped by digital innovation, artificial intelligence and rapidly expanding cross-border commerce.

Adedeji described digital transformation as the central pillar of the collaboration, explaining that Nigeria hopes to benefit from France’s experience in automated compliance systems, data-driven audits and modern taxpayer service platforms.

He added that France stands to gain from Nigeria’s fast-growing digital economy and its youthful, tech-savvy population, which continues to produce innovative solutions across Africa’s largest market. According to him, the exchange of knowledge and expertise is essential as both countries confront emerging challenges in artificial intelligence, cybersecurity and cross-border taxation.

The MoU also prioritises workforce development, with Nigeria looking to adopt France’s structured human capital systems, professional standards and continuous learning culture. Adedeji noted that Nigeria’s experience managing a young, diverse and dynamic workforce could offer DGFiP valuable insights as both institutions work toward building modern, adaptive public finance systems.

He said the collaboration is expected to strengthen institutional culture, expand global competencies and prepare personnel on both sides for the evolving landscape of public finance administration.

Another component of the agreement focuses on international taxation, exchange of information, transfer pricing and efforts to combat Base Erosion and Profit Shifting (BEPS).

Adedeji emphasised that, as economic activities become increasingly borderless, enhanced cooperation, intelligence sharing and harmonised tax approaches will be critical to protecting national revenue.

Nigeria has grappled with a low tax-to-GDP ratio, averaging between 6 and 10 per cent over the past decade, well below the African average of around 15 per cent.

The Federal Government is relying on digital reform, unified tax administration and stronger international partnerships to boost revenue without imposing new taxes. Current tax reforms aim to broaden the tax base, simplify compliance, improve transparency and align Nigeria’s tax laws with global standards, particularly as the digital economy and cross-border financial activities continue to expand.

France, widely regarded as a global leader in digital tax reform, has deployed advanced e-filing systems, algorithm-driven compliance tools and real-time data analytics in its tax administration, innovations Nigeria intends to adapt as part of its revenue reform programme.

Adedeji said the partnership will serve as a cornerstone of Nigeria’s transition to the Nigeria Revenue Service, positioning the new agency as a more transparent, technology-driven institution capable of keeping pace with global shifts in taxation. He expressed confidence that the cooperation will help build a modern, trusted and internationally connected revenue administration as Nigeria prepares for the next phase of its public finance reforms.