Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), has clarified that Nigerian manufacturing companies faced losses of approximately N1.7 trillion in 2023 due to Naira depreciation, rather than tax fines as previously speculated.
Addressing the Senate Committee on Finance during an interactive session at the National Assembly Complex in Abuja, Adedeji highlighted that these significant financial losses have severely impacted the country’s tax revenue.
He noted that the exodus of companies has compounded the challenge, leading to substantial declines in tax collection.
He said; “I don’t know anybody that followed in the last year, all manufacturing entity in Nigeria, they declared a total of N1.7trillion losses just as a result of forex and we are saying that okay, one sector of the economy had declared N1.7trillion losses and ask me how does that concern government.
“It concerns the government because, by our law, we will not be able to collect any taxes from them until they recover all those losses, till next 10 years, five years. Even when they make a profit next year, they will tell you they have losses they are carrying forward.”
