The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has emphasized that Nigeria's informal sector requires government support rather than additional tax burdens, revealing that this sector accounts for 92.6 percent of the country's employed population as of the first quarter of 2023.

Speaking at the 157th Board meeting of the Joint Tax Board (JTB) held on Monday in Ibadan, Oyo State, Adedeji highlighted how the recognition of informal work by the National Bureau of Statistics (NBS) has contributed significantly to the reduction in Nigeria's unemployment index.

"President Bola Tinubu has said the focus should be on taxing the fruits and not the seeds so that we don't kill what people have invested in businesses," Adedeji stated, emphasizing the administration's commitment to protecting small businesses and informal workers.

The FIRS chairman, who also serves as the chairman of the Joint Tax Board, urged the 36 state inland revenue board chairpersons present at the meeting to collaborate on strategies that would formalize the informal sector through reliable data collection rather than imposing additional tax burdens.

Adedeji also revealed plans for the JTB to transition into the Joint Revenue Board (JRB), which will have an expanded scope and responsibilities aimed at harmonizing and modernizing tax systems across Nigeria.

Oyo State Governor Seyi Makinde, who hosted the meeting, called for additional support in widening the country's tax net while maintaining a humane approach to taxation.

"We must not only be strategic but also humane in our approach. The goal should not only be to increase revenue but to support and empower those within the informal economy so they can thrive and contribute meaningfully," Governor Makinde said.

The governor added that his administration remains committed to balancing fiscal responsibility with inclusive economic growth, noting that recent initiatives have improved revenue generation in Oyo State.

This development comes as Nigeria continues to grapple with economic challenges, with the government seeking ways to expand its revenue base without placing undue pressure on vulnerable sectors of the economy.