The FIRS–France Tax Pact: A Battle Over Data, Sovereignty, and Nigeria’s Digital Future

By Ephraim Agbo 

On December 10, 2025, just weeks before the scheduled launch of the Nigeria Revenue Service (NRS) in January 2026, the Federal Inland Revenue Service (FIRS) signed a Memorandum of Understanding (MoU) with France’s Direction Générale des Finances Publiques (DGFiP). On its surface, the deal was positioned as a technical cooperation framework — a benign pact focused on capacity building and institutional strengthening.

But in the political and civil arenas, the response has been anything but benign. Instead, the agreement has sparked one of the most intense public debates in recent memory about data sovereignty, national power, and the very direction of Nigeria’s digital governance.

Data Isn’t Just Data — It’s Power

At the core of the backlash is a radically different view of what this deal represents.

For critics — ranging from civic advocates to political elites — this is not a routine technical cooperation agreement. It is a strategic breach of Nigeria’s data sovereignty.

The Northern Elders Forum (NEF) has been particularly outspoken, labeling the MoU a “dangerous tax data agreement” and a potential “gateway into the heart of Nigeria’s tax infrastructure.” This rhetoric captures a growing anxiety: that taxpayer data is not merely administrative information, but national power — a resource as vital as oil revenues or monetary reserves.

Data rights advocate Segun Adebayo encapsulates this fear succinctly:

“Taxpayer data is national power. Allowing foreign control over this data is a threat to national security.”

For opposition voices, the issue isn’t abstract; it is existential. In an age where digital footprints can reveal economic patterns, political affiliations, and even personal vulnerabilities, who controls the data controls influence.

FIRS’ Response: Standard Cooperation, Not Sovereignty Surrendered

In response, FIRS has mounted a sustained defense of the agreement.

Officials stress that:

• France will not have access to Nigerian taxpayer data, digital systems, or operational infrastructure.
• The MoU’s focus is strictly on knowledge sharing, workforce development, and best-practice guidance.
• Nigerian laws — including the Data Protection Act (2023) — remain fully enforceable and protective of citizens’ information.

In essence, FIRS is arguing that the pact is a neutral, non-intrusive step toward modernizing Nigeria’s tax architecture — a system that must become more efficient if the country hopes to widen its revenue base in an increasingly competitive global economy.

Historical Shadows: Why France Amplifies the Fear

But this dispute is not unfolding in a vacuum. The choice of France as a technical partner has intensified mistrust precisely because of historical patterns of French influence in West Africa.

Critics explicitly tie the current uproar to France’s colonial legacy and post-colonial engagements. The NEF warns that in other African countries, French-led agreements have been followed by economic influence, political leverage, and strategic dependency — a trajectory many Nigerians fear could be replicated.

The African Democratic Congress (ADC) puts it bluntly:

“The irony is stark. At a time when former French colonies are distancing themselves from neo-colonial structures, Nigeria is courting one.”

This resonates in the broader West African geopolitical context, where France has withdrawn military bases and recalibrated its role amid rising anti-French sentiment. Some analysts now speculate that France may be pivoting toward economic and digital partnerships as a new avenue of influence.

Legal Guardrails and the Local Tech Question

Legally, Nigeria is not without defenses.

The Data Protection Act (2023) created a robust framework aimed at protecting personal data and establishing the Nigeria Data Protection Commission (NDPC). Under the law, data controllers of major significance — like FIRS — are bound by strict standards of lawfulness, accountability, and individual rights.

Yet opponents maintain that legislation alone, without transparency and enforcement, is insufficient. They argue that foreign technical support should not even approach the innermost workings of a nation’s tax system, given how sensitive and strategic that system is.

Meanwhile, the question of local capacity has become a lightning rod. Nigeria boasts one of Africa’s most vibrant fintech ecosystems, with homegrown players like Flutterwave, Paystack, and Interswitch leading the continent in digital innovation. Critics, including the Peoples Redemption Party (PRP), see a contradiction:

If Nigeria has the talent and technological infrastructure to build world-class financial systems, why outsource foundational tax reform to a foreign power?

FIRS insists this partnership does not replace Nigerian innovators, but the tension remains — and it cuts to a core question: **Is Nigeria building its own digital future or outsourcing it?

Transparency, Accountability, and the Public Trust Deficit

What may be most corrosive in this episode is not the bilateral agreement itself, but the deep mistrust it has exposed.

Opposition groups — including the ADC and PRP — are demanding full public disclosure of the MoU’s contents. As ADC’s Bolaji Abdullahi put it:

“FIRS has told us what Nigeria stands to gain. But it has not told us what France stands to gain.”

This demand for transparency reflects a broader crisis: citizens no longer trust assurances — even from official institutions — without verifiable public documentation and legislative scrutiny.

The NEF has gone further, calling for legislative amendments to guarantee data sovereignty before the NRS becomes operational.

Redefining Sovereignty in the Digital Age

This controversy lays bare a larger global dilemma: how sovereign states manage digital transformation without compromising autonomy.

For the government, sovereignty is about building effective institutions capable of collecting revenue, enforcing the law, and delivering public services. In this framing, an inefficient tax system — prone to evasion and leakage — is a greater threat to sovereignty than a cooperative pact with safeguards.

For critics, sovereignty means exclusive control — especially over systems as sensitive as tax administration. Any encroachment, however well-intentioned, is viewed as a potential foothold for influence or control.

This divide reflects a broader global trend: as data becomes the world’s most valuable asset, digital sovereignty has emerged as the new frontier of national power.

Digital Colonialism — Fear or Forecast?

The phrase “digital colonialism” has become the most potent critique of the FIRS–France agreement — and for many Nigerians, it encapsulates an intuitive fear: that traditional colonialism may be replaced by a subtler, data-driven form of dependency.

In a world where data fuels artificial intelligence, economic forecasting, and strategic decision-making, ceding access — even advisory access — to foreign entities carries symbolic and strategic weight.

The Real Test Ahead

As the countdown to the launch of the Nigeria Revenue Service continues, the real judgment will not be settled in press releases or on social media. It will be measured in implementation, accountability, and oversight.

Questions remain:

• Will Nigeria enforce the legal boundaries it claims to uphold?
• Will the partnership truly strengthen local capacity rather than foster reliance?
• Will the government meet demands for transparency and public accountability?

Ultimately, this episode is more than a policy dispute — it is a test of Nigeria’s confidence in its own digital future, and a litmus test for how emerging economies navigate foreign partnerships in a data-driven world.

In the digital age, sovereignty is not just about territory — it’s about control of information, infrastructure, and influence. How Nigeria answers these questions may shape not just its tax system, but its place in the 21st-century global order.