The Chief Digital Officer of Lotus Bank, Akinlabi Adegoke, has cautioned that Nigeria’s newly signed tax cooperation agreement with France must be implemented carefully to safeguard the country’s data sovereignty and strengthen its domestic tax systems.
Adegoke made the remarks amid growing public debate over the Memorandum of Understanding (MoU) recently signed between the Federal Inland Revenue Service (FIRS) and France’s Directorate General of Public Finances.
The agreement is aimed at enhancing Nigeria’s tax administration through digital innovation, capacity building and improved cross-border cooperation.
Speaking on Monday, Adegoke said international partnerships in tax administration have become increasingly common as governments worldwide rely more heavily on digital infrastructure, data-driven processes and skilled manpower to improve efficiency and compliance.
“At a broad level, this kind of cooperation mirrors what is happening globally. Tax systems today are technology-driven and increasingly interconnected,” he said. “Nigeria has made progress, but gaps still exist in areas such as technology depth, process efficiency and cross-border coordination.”
According to him, collaboration with countries that operate advanced tax systems could help Nigeria address these gaps, provided such partnerships are transparent and designed to strengthen local institutions rather than create long-term dependence on external support.
However, the banking executive stressed that international cooperation cannot substitute for comprehensive domestic reforms. He noted that Nigeria’s tax challenges extend beyond technology to include compliance, public trust, administrative efficiency and coverage, particularly given the size of the informal sector.
“International support can provide tools, training and exposure to best practices, but real improvement will only come from adapting these solutions to Nigeria’s unique realities,” Adegoke said.
The FIRS signed the agreement with its French counterpart last week as part of preparations to modernise Nigeria’s tax system ahead of its planned transition into the Nigeria Revenue Service in January 2026. The pact focuses on digital transformation, staff development and enhanced cross-border tax enforcement.
Despite assurances from the FIRS that the MoU does not involve the transfer of Nigerian taxpayers’ data or the ceding of control over digital tax infrastructure, the agreement has drawn criticism from groups including the Northern Elders Forum and some opposition political parties. Critics have raised concerns about national security, economic sovereignty and data protection.
Responding to these concerns, Adegoke said public vigilance was understandable but urged Nigerians to seek clarity rather than react out of fear.
“Caution is reasonable. People need clear answers on the scope of data sharing, the safeguards in place and who retains control,” he said. “Nigeria must maintain full ownership of its tax systems, infrastructure and decision-making processes. Transparency in implementation is key to building trust.”
He warned that weak data governance could have far-reaching consequences, given the sensitivity of tax information and its close link to the financial system. He called for strict adherence to Nigeria’s data protection laws, robust access controls, audit mechanisms and, where necessary, local hosting of sensitive information.
From the banking sector’s perspective, Adegoke said Lotus Bank views the agreement as an opportunity to improve compliance and better support customers, particularly small and medium-sized enterprises.
“Better digital tax compliance, improved record-keeping and cleaner data flows will also help banks strengthen credit assessment and risk management,” he added.
As Nigeria intensifies efforts to reform its tax administration and boost non-oil revenue, the debate surrounding the France agreement highlights the delicate balance between global collaboration and the protection of national data and institutional control.
