The Federal Inland Revenue Service (FIRS) has moved to dispel widespread concerns over its Memorandum of Understanding (MoU) with France's Direction Générale des Finances Publiques (DGFiP), insisting the agreement is purely for technical assistance and capacity building, with no compromise to Nigerian taxpayer data or sovereignty.
The clarification, issued on Sunday, comes in response to intense public debate sparked by the MoU signed on December 10. Critics, including the Northern Elders Forum (NEF), the African Democratic Congress (ADC), and former Vice President Atiku Abubakar, have raised alarms over potential risks to economic independence, data security, and national security, with some labeling it a form of "digital colonialism."
In its statement, FIRS emphasized: "The MoU is a standard, globally recognised cooperation framework focused solely on technical assistance and capacity building. It does not grant France access to Nigerian taxpayer data, digital systems, or any element of our operational infrastructure."
The agency highlighted that all Nigerian laws on data protection, cybersecurity, and sovereignty remain in full effect, with strict confidentiality provisions embedded in the agreement.
It described the partnership as advisory and non-intrusive, aimed at leveraging DGFiP's century-plus expertise in digital transformation, taxpayer services, and public finance management.
FIRS also addressed fears of sidelining local firms, stating it continues robust collaborations with Nigerian innovators like NIBSS, Interswitch, Paystack, and Flutterwave.
"The MoU is limited to knowledge sharing, institutional strengthening, workforce development, policy support, and best-practice guidance," the statement noted, adding that similar agreements are routine worldwide to enhance tax administration.
The controversy erupted after the signing, with NEF demanding immediate termination, warning of risks like economic espionage and geopolitical blackmail.
ADC called for full disclosure and an independent review, questioning transparency and what France gains. Atiku Abubakar echoed these sentiments, suggesting the deal could expose sensitive data to foreign control.
Supporters view the MoU as a strategic step toward modernizing Nigeria's tax system ahead of the transition to the Nigeria Revenue Service (NRS) in January 2026, enabling better handling of cross-border issues like transfer pricing without ceding control.
FIRS welcomed public discourse but urged it be based on facts: "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."
The agency reaffirmed its commitment to transparency and partnerships benefiting Nigeria's economic development.
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