FIRS: The Cash Cow of Nigeria’s Fiscal Federation – RMAFC Commends Strategic Synergy for National Sustainability The Federal Inland Revenue Service (FIRS) has been lauded by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) as the “cash cow” of Nigeria’s fiscal federation, credited with delivering the lion’s share of the nation’s distributable revenue amidst economic turbulence. This commendation was made during the formal inauguration of a Joint Technical Committee between FIRS and RMAFC held at the FIRS headquarters in Abuja on Tuesday. Delivering remarks at the event, Hon. Bimbo Kolade, RMAFC Member and Chairman of the Inland Revenue Monitoring Committee (IRMC), praised the performance of the FIRS under the leadership of Dr. Zacch Adedeji, stating that tax revenue from the agency now accounts for over 65% of the funds distributed monthly to the federal, state, and local governments—a dramatic shift from the historical dependence on crude oil receipts. “Federal, state and local governments can plan and execute their budgets largely because of the consistent and predictable tax revenues collected by the FIRS. Without that assurance, fiscal planning would be paralyzed,” Kolade said. He attributed this transformation to the “visionary reforms” driven by Dr. Adedeji since his assumption of office in September 2023, including the passage and implementation of the Tax Reform Bills, which faced initial controversies but were resolved through collaborative engagement, particularly on contentious issues such as VAT allocation. Institutional Collaboration: FIRS and RMAFC's Shared Mandate The inauguration of the FIRS-RMAFC Joint Technical Committee signals a renewed commitment to strengthening Nigeria’s fiscal governance architecture. While FIRS is responsible for tax collection and administration, RMAFC plays a constitutional role in monitoring revenues, ensuring fiscal transparency, and allocating federally collected revenues equitably across tiers of government, pursuant to Section 153 of the 1999 Constitution of Nigeria (as amended). Speaking at the event, Dr. Zacch Adedeji emphasized that the agencies are linked by “shared responsibilities and strategic outcomes” that influence fiscal sustainability and national development. “Our collaboration is not ceremonial—it is a structural necessity. As Nigeria shifts toward a non-oil tax-driven economy, the synergy between FIRS and RMAFC must become even more strategic, data-driven, and institutionalised,” he stated. Achievements and Forward Outlook Both agencies acknowledged the significant strides already made through data sharing, revenue verification exercises, and joint monitoring missions, which have improved tax compliance, accuracy in revenue reporting, and effective forecasting for government allocations. Notable impacts include: Improved transparency at the Federation Account Allocation Committee (FAAC) meetings. Increased trust and reliability of data used in state fiscal planning. Enhanced policy inputs from RMAFC informed by tax administration reforms. However, Adedeji cautioned against the risks of functional overlaps and communication breakdowns, advocating for the development of a structured collaborative framework that clearly defines roles, aligns priorities, and promotes technology-enabled integration. Recommendations for a Stronger Institutional Alliance To ensure sustainable inter-agency collaboration, the following actions were proposed: Institutionalisation of Inter-agency Strategy Meetings Quarterly strategic review and planning sessions to harmonise activities. Joint Research, Audits, and Forecasting Models Collaborative analytics to strengthen fiscal modelling and policy development. Technology-Driven Data Integration A unified digital platform for real-time revenue tracking and tax analytics. Legislative Backing for Inter-agency Frameworks A potential Memorandum of Understanding (MoU) backed by legal instruments. Performance Monitoring and Reporting Joint KPIs to assess the effectiveness of tax collection and revenue distribution. Conclusion: Redefining Revenue Governance in a Post-Oil Economy The FIRS-RMAFC partnership stands as a beacon of how institutional cooperation can power Nigeria’s transition from oil dependency to a broad-based tax economy. As the country navigates economic recovery, inflation, and infrastructure deficits, the integrity and efficiency of its revenue institutions will define its development trajectory. The inauguration of the Joint Technical Committee is therefore not just a bureaucratic milestone, but a strategic lever to enhance public finance, deepen fiscal federalism, and uphold the principles of transparency, accountability, and equity. Olatunji Abdulrazaq CNA, ACTI, ACIArb(UK) Founder/CEO, Taxmobile.Online