By Stanley Onyekwere
The Federal Capital Territory Internal Revenue Service (FCT-IRS) has stepped up its sensitization campaign for Ministries, Departments, and Agencies (MDAs), urging strict adherence to Nigeria’s newly implemented 2025 tax reforms, so as to prevent revenue losses and avoid heavy regulatory fines.
Speaking at a strategic stakeholders’ engagement held at the National Assembly Library Trust Fund Complex in Abuja, the tax authority outlined sweeping changes under the Nigerian Tax Administration Act (NTAA) 2025.
The event was specifically designed to gather firsthand feedback from government representatives, eliminate multiple taxation, and smooth the transition to voluntary tax compliance.
Addressing the stakeholders, Fatima Abubakar, the Tax Controller of the MDA Tax Office at FCT-IRS, revealed that the 2025 reforms introduce strict penalties for administrative lapses.
She added that under the new legal framework perks of office are taxable as taxpayers must now pay taxes on all cash and benefits-in-kind.
She noted that for instance, official cars will be taxed at 5% of their value.
According to her, MDAs and individuals face a N100,000 fine for incomplete tax filings in the first month, and N50,000 for each subsequent month.
She further explained that Public institutions awarding contracts must verify the Tax Clearance Certificate (TCC) of vendors, and failure to do so will attract a stiff N5 million fine.
Abubakar also revealed that under the new reforms, the FCT-IRS holds the right to automatically register and generate a Taxpayer Identification Number (TIN) for taxable individuals using their National Identification Number (NIN).
She however, appealed to all MDAs to ensure prompt remittance of employer deductions.
The Executive Chairman of FCT-IRS, Mr. Michael Ango, disclosed that to facilitate these reforms, the FCT-IRS introduced Taxporta, a newly launched end-to-end digital self-service portal.
According to him, the system has been pre-configured to automatically apply statutory allowances, compute tax liabilities, and issue tax clearance certificates once a user inputs their income.
He emphasized that the tool is aimed at reducing physical interaction and making compliance seamless for MDAs from their own offices.
While Ango noted that the law provides timelines for enforcement, he reiterated that the FCT-IRS prefers partnership over punishment.
“For us, the first line is always voluntary compliance.
“It is only when we discover that a taxpayer has become recalcitrant or is willfully refusing to comply that we can begin to talk about penalties,” Ango stated.
Ango explained that the FCT-IRS occupies a unique position as both a Federal and FCT Administration agency, making MDA cooperation vital.
He highlighted that the FCT relies heavily on internally generated revenue (IGR) to fund infrastructure, noting that statutory federal allocations supply only a fraction of the capital city’s development needs.
On his part, Executive Secretary, National Assembly Library Trust Fund, Hon. Henry Nwauba, said: “This engagement is strategic. It reflects the commitment of government institutions to strengthening collaboration, deepening mutual understanding, and promoting compliance with tax obligations in support of sustainable national development.”
Furthermore, the engagement received positive feedback from participants. Mohammed Ali, a Tax Manager at the Nigerian National Petroleum Company (NNPC), commended the initiative, stating that the sensitization exercise boosts stakeholder confidence and demonstrates a high level of transparency by the tax authority.
