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FIRS Rejects Data Risk Claims Over France Tax MoU

FIRS says agreement with France is advisory only, denies foreign access to Nigerian taxpayers’ data amid political backlash.

Federal Inland Revenue Service (FIRS), on Sunday, clarified that a Memorandum of Understanding (MoU) it signed recently with the French tax authority, Direction Générale des Finances Publiques (DGFiP), was focused solely on technical assistance and capacity building.

FIRS stated that contrary to speculations, the agreement did not grant France access to Nigerian taxpayers’ data, digital systems, or any element of Nigeria’s operational infrastructure.

In a statement, the service said the MoU remained a standard, globally recognised cooperation framework.

The explanation came amid criticisms by African Democratic Congress (ADC), which raised concerns over the recent digital tax agreement between both countries.

ADC said while it supported efforts to modernise the country’s tax system, the process by which the deal was reached raised serious questions about transparency, national sovereignty, and the protection of Nigerians’ data.

In a statement signed by its National Publicity Secretary, Mallam Bolaji Abdullahi, ADC called for full public disclosure of the details of the agreement or its immediate termination.

Former Vice President Atiku Abubakar had also criticised the MoU, expressing concerns that the agreement can compromise the country’s economic sovereignty and expose sensitive national data to foreign control.

Atiku said giving a foreign power, especially one with a history of complex relationships with its former African colonies, access to Nigeria’s financial dealings could be a “vicious and ruthless plan to turn Nigeria into France’s vassal state”. 

FIRS, however, pointed out that all existing Nigerian laws on data protection, cybersecurity, and sovereignty remained fully applicable and strictly enforced. 

It said Nigeria Revenue Service (NRS), like its predecessor (FIRS), placed the highest premium on national security and maintained rigorous standards for the protection of all taxpayers’ information.

According to the FIRS statement, similar MoUs are signed by tax administrations around the world to promote collaboration, knowledge exchange, and the adoption of global best practices.

It stated that the DGFiP was among the world’s most advanced tax authorities, with over a century of institutional experience and deep expertise in digital transformation, taxpayer services, governance, and public finance.

The FIRS said, “This partnership simply enables Nigeria to learn from that experience. It is advisory, non-intrusive, and entirely under Nigeria’s control.

“Contrary to misconceptions, the MoU does not displace local technology providers.

“FIRS and the emerging Nigeria Revenue Service (NRS) continue to work closely with Nigerian innovators, such as NIBSS, Interswitch, PayStack, and Flutterwave.

“The MoU does not include the provision of technical services; it is limited to knowledge sharing, institutional strengthening, workforce development, policy support, and best-practice guidance.”

The service added, “We welcome robust public engagement on tax reforms, but such conversations must reflect the actual content and purpose of the agreement.

“Rather than undermining Nigeria’s sovereignty, this MoU strengthens it by helping to build a modern, capable, globally competitive tax administration one firmly in command of its systems, data, and strategic direction.

“FIRS remains committed to transparency, professionalism, and partnerships that advance Nigeria’s long-term economic development.”

FIRS said, “While we appreciate the public’s vigilance and patriotic concern, it is, however, important to provide clarity on the misconceptions arising from the event.”

Nonetheless, ADC said it had carefully reviewed expert opinions on the recent agreement on digital tax reform and revenue administration signed by FIRS, on behalf of the Bola Tinubu administration, and the government of France, and was worried about potential untoward implications.

Abdullahi said, ”Quite significantly, we note the overwhelming concern that the agreement potentially endangers Nigeria’s data security and exposes strategic national economic information to foreign exploitation. 

“Attempts by the FIRS to explain these concerns away have failed to convince anyone that the agreement was done in the nation’s best interest, especially given the manner in which it was hurriedly and secretly package.”

ADC said tax matters were about business, not charity, adding, “In entering into this business agreement, the FIRS has told us what Nigeria stands to benefit. However, it has failed to tell us what France stands to benefit from this deal. 

“Why did the Federal Government of Nigeria enter into a serious agreement, such as this, which potentially infringes on national security and sovereignty, without public disclosure of its full terms, without open engagement with the National Assembly, and without any meaningful effort to carry Nigerians along?

“More fundamentally, we cannot ignore the broader political context of this agreement. Across West Africa, France’s role and influence are being openly questioned. Former French colonies are loosening or severing their neo-colonial ties with the country. Yet, under the Bola Tinubu administration, Nigeria appears to have become more Francophone than the French.

“Nigeria’s local content policy was designed to encourage the development of national human capital and to reduce capital flight by promoting domestic industries, especially in the provision of services. 

“With the plethora of competent and globally acclaimed national service providers in this sector, why does President Tinubu prefer to promote his French connection rather than local capacities?”

The spokesman of the coalition party said the tax reforms should provide opportunities to strengthen national institutions and build local capacity, not to create new dependencies or hand over strategic control of the country’s economic intelligence to external actors.

The statement said ADC “is, therefore, calling for the full publication of this agreement, proper briefing of the National Assembly, and an independent assessment of its implications for data security, cybersecurity, and national sovereignty.

“The details of this closed-door arrangement must be published for all to see, or be terminated.”

Chuks Okocha and James Emejo

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