The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has advocated for supporting Nigeria's informal sector rather than imposing additional taxes on it, highlighting its significant contribution to employment in the country.

Speaking at the 157th Board meeting of the Joint Tax Board (JTB) held on Monday in Ibadan, Oyo State, Adedeji revealed that the informal sector accounts for approximately 92.6 percent of Nigeria's employed population as of the first quarter of 2023.

"The recognition of informal work by the National Bureau of Statistics has contributed to the drop in Nigeria's unemployment index," Adedeji stated while addressing the theme "Taxation of the Informal Sector: Potentials and Challenges."

The FIRS chairman emphasized that President Bola Ahmed Tinubu's administration is focused on protecting small businesses rather than burdening them with excessive taxation. "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," he explained.

Adedeji urged the participants at the meeting, including chairpersons of the 36 states' inland revenue boards, to develop strategies for formalizing the informal sector through reliable data collection and management.

He also announced that the Joint Tax Board would soon transition to the Joint Revenue Board (JRB), with expanded scope and responsibilities aimed at harmonizing and modernizing tax systems nationwide.

Governor Seyi Makinde of Oyo State, who also addressed the meeting, called for additional support in widening the country's tax net while emphasizing 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," Makinde stated.

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 seek ways to expand its tax base amid economic challenges, with authorities increasingly recognizing the importance of the informal sector to the nation's economic stability and growth.