The Federal Inland Revenue Service (FIRS) has expressed deep concern over the significant loss of revenue resulting from the exit of foreign companies from Nigeria. According to the FIRS Chairman, Zacch Adedeji , PhD the departure of these companies has had a substantial impact on the country’s revenue generation, dealing a significant blow to Nigeria’s economy.
The FIRS Chairman revealed that the losses and exits of foreign companies have resulted in a huge decline in revenue collection, making it challenging for the agency to meet its revenue targets. This development has far-reaching implications for the country’s development, as the government relies heavily on revenue generated by the FIRS to fund its projects and initiatives.
The FIRS Chairman attributed the exit of foreign companies to various factors, including the challenging business environment, regulatory issues, economic uncertainty, and insecurity. The agency has called on the government to address these challenges to prevent further losses and encourage foreign investment. “The exit of foreign companies is a wake-up call for Nigeria to address its economic challenges and create a more favorable business climate,” said the FIRS Chairman.
Industry experts have corroborated the FIRS Chairman’s concerns, citing the need for a more conducive business environment to attract and retain foreign investors. “Nigeria needs to address its economic challenges, such as inflation, currency fluctuations, and infrastructure deficits, to make it an attractive destination for foreign investors,” said an economic analyst.
The development has sparked concerns about Nigeria’s ability to meet its revenue targets, which could impact the implementation of the national budget and various development projects. The government has been urged to take swift action to address the challenges facing foreign investors and prevent further losses. “The government needs to act quickly to address the concerns of foreign investors and create a more favorable business environment to attract new investments,” said a business leader.
The FIRS has vowed to explore alternative revenue sources to mitigate the impact of the foreign companies’ exit. However, experts say that addressing the underlying challenges is crucial to restoring investor confidence and boosting revenue generation.
