Connect with us

News

FIRS Boss Reveals Multiple Revenue Collection Agencies Responsible For leakages

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad
By Gloria Ikibah
The Executive Chairman of Federal Inland Revenue Service (FIRS), Zach Adedeji, has said that the collection of revenue by over 60 government agencies is the major cause of leakage of funds.
Adedeji who disclosed this when he appeared before the House of Representatives Committee on Finance, chaired by Rep. for bugdet hearing, said this duty should solely be the responsibility of the Service to ensure greater accountability in the system.
He asserted that other revenue collection agencies of government should focus on their various core mandates; and further advocated for a single window method of tax collection to make the process less cumbersome and check the loss of government funds.
According to the FIRS boss, one of the challenges facing this was lack of verifiable data in the country.
He said a bill would be sent to the National Assembly to ensure all Nigerians have one single number of identification.
He said, “We are doing a lot of reforms including the single window because if you look at FIRS, what we collect mainly is company income tax. The problem we have is that we do not have verifiable data in the country. So one of the major things we are doing which hopefully in the next two weeks or one month maximum, a law would be sent to the House to change so that all Nigerians must have one single number of identification which by law today is NIN. The plan is to make sure everything we do as citizens is linked directly to this NIN. This would also help address issue of tax leakage.”
Adedeji said the Services was given a mandate to collect the sum of N10 trillion based on the Medium Term Expenditure Framework (MTEF) that was passed in 2023 which was reviewed upward to N11 trillion during the year.
He noted that the Service was able to deliver N12.3 trillion as the revenue collected for the year 2023 which was 11 percent above the target set by government.
Adedeji said the performance was as a result of the internal reform that they embarked upon and the favourable economic policy decision by the President.
The FIRS Boss said the mandate of the Service for 2024 through the MTEF is to collect N19 trillion which is an additional N7 trillion compared to what was collected in 2023.
He said the bulk of it is coming from positive projection from oil and gas revenue.
He however said if this ambitious target of N19 trillion is to be met there is need to restructure the service to be more focused.
Adedeji said, “So instead of having types of taxes, what we do now is to categorise by the turn over which is customer focused. Now we have large tax if your turnover is above N5 billion. Between N1 and N5 billion is medium and anything less than N1 billion is a small tax payer.
“The reason for this is simple. We want to provide a one stop shop for tax payers. Where one can do all forms of taxes. This would reduce multiple audits and distraction to the businesses. It is our intention that 80 percent of core service job is done by the service.
“The tax to GDP is very low compared to our peers and that is why we have to come up with those reforms that Mr President has approved. One of it is the setting up of that tax reform committee. What we see is that in other climes, you have single revenue collecting agents. But here in Nigeria we have more than 62 agencies collecting one way or the other on behalf of Federal Government.
“And when you see people focussing on revenue instead of going to their area of strength, when everybody tries to collect, the leakage is all there. Two is the law that we have. Most of them are obsolete. For example the digital tax that we are talking about there is no law in Nigeria that empowers us to effectively tax all these digital businesses which we know is on the rise.
“Also our processes, Mr Presidnent approved that going forward we should pay our contractor’s directly instead of moving money to MDAs, most especially capital funding. What that would do is that we can deduct tax and also help us in cash management.
“We are also doing a lot of reforms including the single window. Because if you look at FIRS what we collect mainly is company income tax which is result of the difference between cost of sales and gross sales. But cost of sales if inflated means you would have less profits and less taxes.
“Today we don’t have anywhere to confirm the major cost of sales of all these companies because when they do the valuation sometimes, they do not have verifiable value to do that”, he noted.
Chairman, House Committee on Finance,, Rep. James Faleke, queried if the proposed single window revenue would mean whether Customs, NIMASA, NPA and all the major revenue collectors would be subject to the FIRS or the Service would be collecting revenue on their behalf.
In response, Adedeji said these agencies should rather concentrate on their individual primary mandates and leave the revenue collection to the FIRS.
He said, “This is the way. If you look at the basis of collection like you mentioned, I use NIMASA as example, the basis of collection for NIMASA is 3 percern of FOB. That has nothing to do with Marine. FOB, if you have the single window, you know the total number of vessels coming into the country and going out and the fee is just 3 percent, so what does NIMASA need to do about that.
“What we are saying is that these agencies were set up to do core duties. When you talk about Customs, they are border and trade facilitation. Revenue is not core mandate of Customs. Customs is about border and trade facilitation. So when you have single window, all what you say Customs collects because the real principle of single window is that everything coming to the country is in advance notified, so you know the number of containers coming, the volume, what is there and you know the amount and they pay you once.
“When you do that, the Customs collecting this and that or the NPA collecting also, this would go. When we talk about single that is why they say revenue service. If you go to UK or South Africa, you don’t see Customs Customs collecting revenue. They are merged.
“I am not saying it is bad but it is not the duty of FIRS to be approving payment for roads. I don’t have people who would monitor whether that road is done or not. So my duty is to access, collect and account for all revenue due to Federation. So any other  job may be good and laudable but that is not my core duty. So the same things happens when you see a lot of other agencies collecting revenue. And that is when you see leakages,” he added.
The Chairman commended the initiative to ensure payments are made directly to the contractors and not the MDAs.
He reiterated the commitment of the Committee to ensure that leakages are addressed and revenue increased to make life better for the ordinary Nigerian.
He said, “No one here will doubt your capability, it’s just the political will. Thank God that we have a president who has given you the authority and of course back you with that political will to reform our tax system. What you have to do is to look inward and ensure that you have directors and staffers who will not and negotiate you out.
“We have document to show that we have operators of our revenue collection who also negotiate and say you can pay this, we will do this. That is exactly what we are facing.
“With all the things you have enumerated, only you cannot do the job. You also have to delegate. So what this means is that every one of your staff who are on oath will ensure that they do the right thing.”
Continue Reading
Advertisement

News

BREAKING: Gov Adeleke narrowly escapes death as gunmen attack convoy

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

Osun State Governor, Ademola Adeleke, reportedly escaped unhurt on Wednesday after suspected thugs attacked his convoy shortly after he left the palace of the Ataoja of Osogbo, Oba Jimoh Oyetunji.

The attack triggered an exchange of gunfire between the suspected attackers and security personnel attached to the governor’s convoy.

The shooting reportedly lasted between 12 and 15 minutes, causing tension around the palace and its environs.

Adeleke had visited the Ataoja’s palace shortly after receiving his Certificate of Return from the Independent National Electoral Commission (INEC) at the commission’s state headquarters in Osogbo, following his victory in the recent Osun State governorship election.

Advertisement

The governor arrived at the monarch’s palace at about 3:15 p.m. in a motorcade of approximately 20 vehicles.

An eyewitness, who spoke under the condition of anonymity for security reasons, said Adeleke and members of his entourage were received by Oba Oyetunji.

According to the eyewitness, the governor presented his Certificate of Return to the traditional ruler during the visit before departing the palace.

However, shortly after the governor’s convoy left the palace, suspected thugs reportedly launched an attack, leading to an exchange of gunfire with security operatives.

Advertisement

The circumstances surrounding the attack, including the identity and motive of the suspected attackers, were not immediately clear at the time of filing this report.

The incident comes shortly after the conclusion of the Osun governorship election, in which Adeleke was declared the winner by INEC and secured another term in office.

Security agencies are expected to investigate the incident and determine those responsible for the attack.

Advertisement
Continue Reading

News

Kwara APC Candidate’s Supporters Distribute Pillows to Market Women in 2027 Campaign Drive

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

Supporters of the All Progressives Congress (APC) candidate for the Ilorin East/South Federal Constituency, Abdulqowiyu “Cook” Olododo, have distributed pillows to traders and market women at Ipata Market in Ilorin, Kwara State, as part of their grassroots mobilisation ahead of the 2027 general elections.

The items were distributed on Tuesday by members of the A.C.O Forum, a support group backing Olododo’s bid to represent the constituency in the House of Representatives.

The outreach formed part of the forum’s door-to-door and market-to-market campaign aimed at engaging residents and building support for the APC candidate ahead of the election.
Members of the group moved around the market, interacting with traders, residents and other community members while distributing the pillows.

The forum described the exercise as a gesture of goodwill and community engagement, while also using the opportunity to promote Olododo’s candidacy and mobilise support for his 2027 ambition.
During the exercise, members of the group also listened to concerns raised by residents and discussed political participation and the need for citizens to remain actively involved in the electoral process.

Advertisement

In a statement signed by the Chairman of the A.C.O Youth Forum, Afeez Kolawole, and the Secretary, Akeem Ibrahim, the group said the initiative was part of its broader grassroots engagement strategy.

“The ongoing door-to-door and market outreach is aimed at building meaningful relationships, understanding the needs of the people, promoting peaceful political participation, and encouraging residents to remain informed and involved in matters affecting their communities,” the forum said.

The group said its mobilisation strategy was designed to take political engagement beyond rallies and other large gatherings by reaching residents directly in markets, homes and communities.

It added that similar outreach activities would be extended to other communities and wards across the constituency in the coming days.

Advertisement

The forum described its campaign approach as: “A.C.O Forum — Taking the Message to the People, One Household and Community at a Time.”

Olododo is seeking the APC ticket to represent the Ilorin East/South Federal Constituency in the House of Representatives in the 2027 general elections.

Continue Reading

News

2027: Defence minister warns, no amount of security measures can work once politicians decide to go violent

Published

on

ADVERTISEMENT
Zoom Ad
ADVERTISEMENT
Zoom Ad

The Minister of Defence, Gen. Christopher Musa (retd.), has warned that no security arrangement can guarantee peaceful and credible elections in 2027 if political actors resort to violence, misinformation and other forms of electoral malpractice.

Musa, who spoke through his Senior Special Adviser on Policy and Strategy, Maj.-Gen. Olufemi Akinjobi (retd.), at the eighth Blueprint Newspaper Lecture and Awards, said the responsibility for peaceful elections extended beyond security agencies to political parties, candidates, the media, civil society and the electorate.

He said political actors must view elections as a democratic contest rather than warfare, stressing that national interest should take precedence over partisan considerations.
“No security architecture, regardless of how sophisticated, can guarantee peaceful elections if political actors choose violence over dialogue. No electoral law can succeed where misinformation is allowed to replace truth. No democratic institution can flourish where citizens lose faith in the rule of law,” Musa said.

The minister outlined a six-point framework for strengthening election security ahead of the 2027 general elections.

Advertisement

The framework includes intelligence integration, threat assessment, protection of digital infrastructure, cyber resilience, civil-military coordination and strategic communication.
According to him, the Armed Forces will work with the Office of the National Security Adviser, the Nigeria Police Force, the Department of State Services, the Defence Intelligence Agency, the Independent National Electoral Commission and other relevant institutions to ensure that their constitutional responsibilities are carried out professionally and impartially.
Musa also dismissed concerns about partisan interests within the military, insisting that the Armed Forces had no stake in determining the outcome of elections.

“The Armed Forces have no partisan interest in the outcome of elections. Our institutional interest is that Nigeria remains peaceful, united and secure, and that every lawful responsibility assigned to us is carried out with honour, professionalism and accountability.”

He urged political parties and candidates to respect democratic institutions and the rule of law, while calling on the media to promote responsible reporting and counter the spread of misinformation.
The minister also appealed to civil society organisations, traditional and religious leaders to intensify civic education and encourage peaceful participation in the electoral process.
He particularly urged Nigerian youths to reject political violence and avoid being used by politicians to disrupt the electoral process.

Musa said building a peaceful electoral environment required collective commitment from all stakeholders, noting that security agencies alone could not guarantee credible and violence-free elections without the cooperation of political actors and citizens.

Advertisement
Continue Reading

Trending

Copyright © 2024 Naija Blitz News