During the 7th National MSME Awards in Abuja (June 29, 2025), the Federal Inland Revenue Service (FIRS) recognized Raw Food and Beauty Research Ltd for exemplary tax compliance. The company was rewarded with a brand-new car and ₦2 million cash .
FIRS led by Executive Chairman Dr. Zacch Adedeji, represented at the ceremony by Dr. Dick Irri is actively promoting voluntary tax compliance among MSMEs, including those newly formalized online .
- Criteria for recognition included timely business registration, regular filing of VAT, corporate taxes, and prompt remittances .
This reward fits within a broader FIRS strategy aimed at incentivizing informal businesses to enter the formal tax system, leveraging rewards instead of solely relying on enforcement .
What are the Impact:
Encouraging Compliance: Such public rewards raise awareness and encourage other MSMEs to register and comply.
Promoting Formalisation: Formal registration (e.g., CAC, VAT, corporate tax) becomes more appealing to small businesses.
Building Trust: Presenting rewards and support (rather than punishment) helps build trust between MSMEs and the tax authority.
Digital Engagement: This complements recent FIRS efforts using e-invoicing, USSD tools, and stakeholder engagement to simplify compliance .
What MSME owners should do
Register formally with FIRS and CAC if you haven’t done so.
Maintain good tax behaviour file and remit regularly.
Stay tuned for future award schemes, trainings, or incentives aimed at supporting compliant MSMEs.
Summary
FIRS’s gesture giving a cash prize and a car reflects a shift toward positive reinforcement to boost voluntary tax compliance among micro and small businesses.
It’s not just a one-off: it’s part of a wider, modern strategy to digitalize, simplify, and humanize tax engagement with MSMEs.
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