The Federal Inland Revenue Service (FIRS) Memorandum of Understanding (MoU) Lagos State Internal Revenue Service (LIRS) to establish a joint tax audit system that will address duplication of efforts and facilitate the exchange of data.

Highlights of the signed MoU;
The FIRS and LIRS will carry out joint audit and investigation as well as conduct automatic exchange of information for gathering data for the purpose of tax administration.

1. The two tax authorities will collaborate on Capacity Building and strengthen the tax administration in Nigeria.

2. Expectations for the need for an establishment of a Joint Audit and Investigation team in which the FIRS/LIRS will refer to them as the “JAIT” covering both the back-duty and investigation of any selected taxpayer.

3. Both agencies are to promotes confidentiality, protect the financial information of all taxpayers exchanged, alongside ensure transparency and accountability in its reports.


1. Allows for the smooth operations for the tax authorities, which tends to also bring about improved service delivery for taxpayers.

2. The joint operation between the agencies will bring about a reduction in compliance cost for taxpayers.

3. It is expected to ensure that there is an improved transparency in the tax administration process.

4. Also, a reduced administrative cost for both tax authorities (FIRS and LIRS).


This might bring about over-lapping of responsibilities amongst the agencies.


An important aspect is the legal backing of the MoU. Section 68(4&5) of the FIRS Establishment Act as amended allows such collaboration between the FIRS and other Federal ministries and parastatals, but can the same section be interpreted to allow such collaboration with states and local government?

While the collaboration efforts are commendable, it is important that all the legal and administrative framework required to ensure the smooth take off of the MOU is properly considered by both parties.

Details of the MOU are still sketchy as no copy of the signed document has been made public yet. Until then, discussion will remain limited.

Kindly drop your comments below.  #taxaudit #taxation

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