The Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) are set to receive $10 million in technical assistance as part of the recently approved $750 million Nigeria Accelerating Resource Mobilization Reforms (ARMOR) Program-for-Results (PforR) project. This initiative is a segment of the broader $2.25 billion funding approved by the World Bank for Nigeria on June 13, 2024, aimed at advancing reforms in the country.

The ARMOR project comprises $730 million in results-based financing and $20 million in investment financing. Initially, $20 million will be released, with the remaining $730 million contingent upon Nigeria meeting specific requirements.

According to a stakeholder engagement plan document from the World Bank's website, both FIRS and NCS will receive $5 million each in investment financing. The FIRS will utilize its $5 million allocation to develop and implement initiatives to enhance its operations and revenue collection capabilities. This includes creating a robust third-party data sharing platform and administrative control programs to streamline operations and boost efficiency.

Moreover, the FIRS will develop a VAT lottery system and an e-invoicing system, both dependent on advanced software and comprehensive communication strategies, aimed at increasing VAT collections and improving taxpayer compliance. Additionally, the funding will support the creation of a risk-based audit assessment program for VAT and Corporate Income Tax (CIT) to enhance audit process effectiveness and efficiency.

Similarly, the NCS will receive $5 million to improve its administrative processes and compliance measures. This funding will be used to design and implement new administrative procedures, including establishing sanctions for non-compliance with excise rules. The NCS will also develop centralized control room systems with backup and disaster recovery capabilities to ensure operational continuity during emergencies.

The funding will further support capacity-building initiatives, enabling the NCS to effectively manage and implement the new systems and processes, ultimately leading to improved compliance and operational efficiency.

This significant financial support underscores the World Bank's commitment to aiding Nigeria in its reform efforts, focusing on enhancing revenue mobilization and operational efficiency within key governmental agencies.