THE Federal Inland Revenue Service (FIRS) has said the memorandum of understanding (MoU) it signed with France’s Direction Générale des Finances Publiques (DGFiP) would not grant the European nation access to Nigerian taxpayers’ data or systems.
The DGFiP (Directorate General of Public Finances) is an agency of the French government that plays a key role in public finance management, including taxes.
On December 10, the service signed an MoU with the DGFiP on the promotion of efficient tax administration.
The MoU has raised a lot of questions from economic and security stakeholders over a possible data privacy breach.
However, in a statement on Sunday, December 14, the FIRS clarified misconceptions about the development.
“MoU is a standard, globally recognised cooperation framework focused solely on technical assistance and capacity building,” the FIRS said.
It explained that it did not grant France access to Nigerian taxpayers’ data, digital systems, or any element of the country’s operational infrastructure.
“All existing Nigerian laws on data protection, cybersecurity, and sovereignty remain fully applicable and strictly enforced.
“The Nigeria Revenue Service (NRS), like its predecessor (FIRS), places the highest premium on national security and maintains rigorous standards for the protection of all taxpayers’ information,” it stated.
The FIRS said the MoU was to leverage France’s expertise in digital transformation, taxpayer services, governance, and public finance.
“It is advisory, non-intrusive, and entirely under Nigeria’s control. Contrary to misconceptions, the MoU does not displace local technology providers,” the Service said.
“FIRS and the emerging Nigerian Revenue Service (NRS) continue to work closely with Nigerian innovators such as NIBSS, Interswitch, PayStack, and Flutterwave,” it stressed.
According to the FIRS, the MoU strengthens Nigeria’s sovereignty to build a modern, capable, globally competitive tax administration, one firmly in command of its systems, data, and strategic direction.
While expressing concerns over data privacy breach, the Executive Director of Centre for African Policy Reserach and Advisory (CAfPRA), Segun Adebayo, said the full execution of Nigeria’s tax reforms must remain 100 per cent in Nigeria’s hands, noting that it’s a sovereign security risk if a foreign entity has access to Nigerian tax data, financial transactions or national digital records.
He expressed fears over espionage, surveillance and massive exploitation, stating that, “Foreign-controlled systems open the door of espionage, digital colonisation and economic sabotage.
He further stressed that the MoU could give real-time visibility into which sectors thrive, which could give France leverage in every future trade, investment and loan negotiations.
“No serious country hands its tax backbone to a foreign power,” he added.
In a similar vein, the spokesperson of the African Democratic Congress (ADC), Bolaji Abdullahi, said on Sunday, December 14, on his official X account that the MoU endangered Nigeria’s data security and exposed a strategic national economic information for foreign exploitation.
“Tax matters are about business, not charity. 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?”, Adbullahi queried.
He further queried the broader implications of such a political-economic alliance with France, adding that “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.”
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.