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Nairametrics
Home Economy

FIRS directs banks to close unauthorised tax collection accounts 

Tobi Tunji by Tobi Tunji
April 29, 2025
in Economy, Spotlight, Tax
FIRS plans to increase tax revenue by 57% to N19.4 trillion in 2024 
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The Federal Inland Revenue Service (FIRS) has ordered all banks in Nigeria to immediately identify and close any tax and levy collection accounts not authorised under the agency’s TaxPro Max system.

This directive, announced through a public notice issued by the Executive Chairman of FIRS, Zacch Adedeji, and circulated to journalists on Monday by his Special Adviser on Media, Dare Adekanmbi, forms part of ongoing reforms by the agency to enhance transparency, accountability, and efficiency in Nigeria’s tax collection framework.

According to the notice, all tax and levy collections must now be processed exclusively through the TaxPro Max platform, the digital solution introduced by the FIRS to centralise and automate tax administration processes.

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What the FIRS is saying 

The notice, titled “Directive to close unauthorised FIRS tax collection accounts”, emphasised that any accounts outside the TaxPro Max system are considered unauthorised. Consequently, banks are expected to discontinue the use of such accounts without delay and ensure strict adherence to the new collection procedure.

“Effective immediately, all tax and levy collections on behalf of FIRS must be processed exclusively pursuant to an assessment raised on the TaxPro Max platform.

“All banks participating in the FIRS Collection, Remittance and Reconciliation Scheme are hereby advised to comply with this directive within the stipulated period.

“We count on your cooperation to ensure a smooth transition to this centralised system, thereby contributing to a more transparent and efficient tax collection process,” the notice stated.

FIRS further reiterated that banks participating in its Collection, Remittance, and Reconciliation Scheme must only process transactions originating from TaxPro Max-generated assessments.

The agency noted that the move would also enhance real-time reconciliation of collections, minimise revenue leakages, and support its broader digitalisation agenda.

TaxPro Max system 

The TaxPro Max platform, developed locally, is a comprehensive digital tax administration solution designed to facilitate end-to-end tax activities. These activities include taxpayer registration, filing of returns, payment processing, automatic issuance of receipts, and the generation of tax clearance certificates.

Since its deployment, TaxPro Max has become central to the FIRS’s strategy to modernise Nigeria’s tax administration infrastructure, reduce human contact in tax processes, and improve ease of compliance for taxpayers.

By mandating exclusive use of the platform, FIRS aims to eliminate the proliferation of multiple collection accounts and bring uniformity to how taxes are assessed, collected, and reconciled.

Implications for banks and taxpayers 

With this directive, banks are expected to align their internal tax collection mechanisms with the TaxPro Max system to avoid regulatory breaches. Financial institutions that fail to comply with the directive risk sanctions or exclusion from participating in future FIRS tax collection activities.

For taxpayers, the transition means that all payments to FIRS must now be based strictly on assessments raised via the TaxPro Max portal. Payment through any unauthorised channel or to any unauthorised account will be invalid and could expose taxpayers to penalties.

To support the transition, the FIRS encouraged taxpayers and banks seeking clarification or assistance to reach out to its Revenue Accounting and Refund Department (RAAD).

The directive by the FIRS marks a significant step towards tightening Nigeria’s tax collection processes and minimising leakages through unauthorised accounts. It also highlights the agency’s commitment to leveraging technology to drive transparency and accountability across the tax ecosystem.

Tags: firsTaxPro Max systemZacch Adedeji
Tobi Tunji

Tobi Tunji

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