Following trending virulent criticisms of how it entered a digital tax agreement with France, the Federal Inland Revenue Service (FIRS) has defended the cooperation agreement, insisting that the deal does not compromise Nigeria’s sovereignty, data security or control over its tax systems.
In a statement responding to public concerns, FIRS said the memorandum of understanding (MoU) signed with France’s Direction Générale des Finances Publiques (DGFiP) is a standard international cooperation framework focused strictly on technical assistance, capacity building and institutional strengthening. The service stressed that the agreement is advisory and non-intrusive, and does not grant France access to Nigerian taxpayer data, digital platforms or operational infrastructure.
“All Nigerian laws on data protection, cybersecurity and national sovereignty remain fully applicable and are strictly enforced under this agreement,” FIRS stated, adding that similar arrangements are common among tax authorities worldwide to promote knowledge exchange and global best practices.
The MoU was signed by FIRS Chairman, Dr Zacch Adedeji, and the French Ambassador to Nigeria, Marc Fonbaustier, weeks ahead of FIRS’ planned transition to the Nigeria Revenue Service (NRS) in January 2026.
According to FIRS, the partnership is aimed at modernising Nigeria’s tax administration through digital transformation, workforce development, policy support and enhanced cross-border cooperation.
Adedeji described the agreement as a collaborative effort to build “stronger, more resilient and forward-looking” tax systems in an era increasingly shaped by technology, artificial intelligence and cross-border digital commerce. FIRS also noted that the DGFiP is regarded as one of the world’s most advanced tax authorities, with extensive experience in digital transformation and public finance management.
Addressing concerns about local capacity, the service dismissed suggestions that the agreement would sideline Nigerian technology firms. It said FIRS and the incoming NRS would continue to work closely with local companies such as NIBSS, Interswitch, PayStack and Flutterwave as part of ongoing tax reforms. The agency further clarified that the MoU does not involve the provision of technical services by France, but is limited to knowledge sharing and institutional support.
However, the African Democratic Congress (ADC) has called on FIRS to make the full details of the agreement public or terminate it altogether. In a statement issued in Abuja, the party’s National Publicity Secretary, Mallam Bolaji Abdullahi, questioned the transparency surrounding the signing of the MoU and raised concerns about its implications for national sovereignty and data protection.
While acknowledging the need to modernise Nigeria’s tax system, Abdullahi argued that similar digital tax arrangements elsewhere had exposed countries to risks involving sensitive economic and taxpayer data. He also criticised the absence of consultation with the National Assembly, describing the agreement as a “sensitive deal” that required broader stakeholder engagement.
The ADC spokesman further questioned what France stood to gain from the partnership, noting what he described as the country’s declining influence in West Africa. He argued that Nigeria possesses sufficient local technological capacity and that tax reforms should prioritise institution-building, sovereignty and robust data protection frameworks.
Abdullahi called on FIRS to publish the agreement, brief the National Assembly and commission independent assessments of potential data protection and cybersecurity risks. He said the deal should be terminated if it is found to undermine Nigeria’s national interests.
In its response, FIRS welcomed public engagement on tax reforms but urged critics to base their arguments on the actual content and purpose of the agreement. The service maintained that the partnership would ultimately strengthen, rather than weaken, Nigeria’s sovereignty by supporting the development of a modern, efficient and globally competitive tax administration.
FIRS reaffirmed its commitment to transparency, professionalism and partnerships that support Nigeria’s long-term economic development.
