France tax pact: Banker urges prudence, strong data protection

The Chief Digital Officer of Lotus Bank, Akinlabi Adegoke. Credit: Akinlabi Adegoke

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The Chief Digital Officer of Lotus Bank, Akinlabi Adegoke, has cautioned that Nigeria’s newly signed tax cooperation agreement with France should be implemented carefully to protect the country’s data sovereignty and strengthen its internal tax systems.

Adegoke’s comments come amid growing public debate surrounding the Memorandum of Understanding recently entered into by the Federal Inland Revenue Service and France’s Directorate General of Public Finances, an agreement designed to enhance Nigeria’s tax administration through digital innovation and capacity building.

Speaking with The PUNCH on Monday, Adegoke said international partnerships in tax administration have become increasingly common as governments rely more on digital infrastructure, data-driven systems and skilled manpower to improve efficiency and compliance.

According to him, the agreement reflects global trends in modern tax administration, but its success will depend largely on how well Nigeria manages implementation.

“At a broad level, this kind of cooperation mirrors what is happening globally. Tax systems today are technology-driven and increasingly interconnected.

“Nigeria has made progress, but gaps still exist in areas such as technology depth, process efficiency and cross-border coordination,” he said.

He noted that collaboration with countries that operate advanced tax systems could help Nigeria address these shortcomings, provided such partnerships are transparent and structured to strengthen local institutions rather than foster dependence.

However, the banker stressed that external cooperation cannot replace comprehensive domestic reforms.

“Nigeria’s tax challenges go beyond technology. Issues of compliance, trust, efficiency and coverage remain central. International support can offer tools, training and exposure to best practices, but real improvement will come from adapting these solutions to Nigeria’s unique realities, including the size of the informal sector,” he explained.

The FIRS signed the cooperation agreement with its French counterpart last week as part of efforts to modernise Nigeria’s tax system ahead of its transition into the Nigeria Revenue Service in January 2026.

The pact focuses on digital transformation, staff development and improved cross-border tax enforcement.

Despite assurances from the FIRS that the agreement does not involve transferring Nigerian taxpayer data or handing over control of digital tax infrastructure, the MoU has faced criticism from the Northern Elders Forum and opposition political parties, who have raised concerns about national security and economic sovereignty.

Reacting to these concerns, Adegoke said public vigilance was justified, stressing that Nigerians should demand clarity rather than succumb to fear.

“Caution is reasonable. People need clear answers on the scope of data sharing, the safeguards in place and who retains control.

“Nigeria must maintain full ownership of its tax systems, infrastructure and decision-making processes. Transparency in implementation is key to building trust,” he said.

He warned that weak data governance could have far-reaching consequences, given the close relationship between tax data and the financial system.

“Tax data is highly sensitive. If data governance is poor, it could erode confidence not only in the tax system but also in the wider financial sector,” Adegoke said, calling for strict compliance with Nigeria’s data protection laws, strong access controls, audit mechanisms and local hosting of sensitive information where necessary.

From the banking sector’s perspective, he said Lotus Bank views the agreement as an opportunity to enhance compliance and better support customers.

“We see this as a chance to improve digital tax compliance, especially for small and medium-sized businesses. Better record-keeping and cleaner data flows also help banks improve credit assessment and risk management,” he noted.

Adegoke added that a more efficient and transparent tax system would benefit businesses, financial institutions and the broader economy.

Nigeria has intensified efforts to reform its tax administration as part of wider fiscal measures aimed at expanding the tax base, improving compliance and boosting non-oil revenue.

While digitalisation and international cooperation remain central to this push, the debate over the France tax agreement underscores the need to balance global collaboration with the protection of national data and institutional control.

A business, investment, infrastructure and property correspondent currently with The PUNCH, Aina is a media professional with over three years experience

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