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FIRS Boss Reveals Multiple Revenue Collection Agencies Responsible For leakages

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2 years ago

February 28, 2024

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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.”

News

US, Iran to begin fresh talks after deadly strikes

Published

10 minutes ago

June 21, 2026

Austin Ojomah

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A new round of negotiations over the Middle East war was set to kick off Sunday as Iranian negotiators and US Vice President JD Vance arrived in the Swiss host city, even as Tehran said it was closing the Strait of Hormuz again over Israeli attacks in Lebanon.

Before boarding his flight to Europe, Vance told reporters he hoped to “make progress on the nuclear issue, make progress on the Lebanon ceasefire issue. Those are the two big things that I think we’re going to be focused on”.

Follow-up talks had been planned in Switzerland on Friday but were postponed at the last minute after Israel launched deadly strikes in Lebanon following the deaths of four of its soldiers in combat.

Washington announced a renewed ceasefire there later Friday — a condition of its preliminary agreement with Iran — but Israeli troops clashed again with Hezbollah fighters on Saturday, with each side accusing the other of breaking the truce.

Citing a US “breach of contract” and “the Zionist regime’s continuous and relentless violation of the ceasefire in southern Lebanon”, Iran’s central military command said “the Strait of Hormuz will be closed to vessel traffic”.

Hormuz, a key conduit for oil and gas shipments, was blockaded by Iran for much of the war, sending shockwaves through global energy markets.

Tehran had agreed to reopen it under the preliminary accord signed by US President Donald Trump and his Iranian counterpart Masoud Pezeshkian, and shipping traffic had begun to recover.

US Central Command said after Iran’s announcement that safe passage through the international waterway had “remained intact” and that US forces were “present and vigilant”.

Trump later warned that Washington could impose its own tolls on Hormuz if negotiators failed to complete the deal.

There would be no tolls “unless they are imposed by and for the United States of America”, Trump wrote on Truth Social.

– Switzerland push –

An Iranian delegation arrived in Switzerland late Saturday, state media and the Swiss foreign ministry said.

Iran’s official broadcaster said it included parliamentary speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi.

Foreign ministry spokesman Esmaeil Baqaei said the delegation would “demand implementation of the other party’s commitments” under the deal.

“Otherwise, the entire understanding will be in trouble,” he said, according to official news agency IRNA.

Vance arrived at the Emmen Air Base in Switzerland on Sunday morning, having earlier said he could only stay “a day or two”.

US negotiators Jared Kushner and Steve Witkoff were already there handling “some of the technical elements” and had reported that “things are going well”, Vance said in an interview with Fox News earlier Saturday.

Pakistan, which has been helping to mediate, said Sunday that Prime Minister Shehbaz Sharif and army chief Asim Munir had left for Switzerland to take part in high-level talks involving US and Iranian representatives and other mediators from Qatar.

The talks are meant to open a two-month negotiation period on issues left unresolved by the initial accord, notably Iran’s nuclear programme.

– Lebanon truce frays –
Israel and Hezbollah continued trading accusations Saturday as fighting persisted in southern Lebanon.

The Israeli military said one soldier was killed in combat, the fifth such fatality since the US-Iran deal was reached.

An Israeli army official later said the military had received orders from the country’s political leadership to cease fire, adding that troops were “not conducting proactive strikes” but operating defensively inside a security zone.

Earlier, an Israeli military official said fresh attacks were under way after Hezbollah “launched more than 50 projectiles at Israeli forces in southern Lebanon” overnight.

Hezbollah accused Israel of carrying out “under the cover of the ceasefire… an infiltration attempt towards the Ali Taher hills”, a strategic feature overlooking Nabatieh, and said its fighters had responded “with appropriate weapons”.

Lebanese state media reported Israeli air raids on around 20 locations, with authorities counting more than 30 dead. The overall death toll from the fighting in Lebanon had surpassed 4,000, the health ministry said.

Hezbollah lawmaker Hassan Fadlallah said his group retained “the full right to confront this enemy when it attacks us”.

Israel’s US ambassador Yechiel Leiter maintained it was Hezbollah that broke the truce, saying Israel was “defending itself against terrorist attacks”.

But Hezbollah said Israel bore “full responsibility”.

Fadi Zayat, who fled the southern Lebanon town of Tayr Debba, told AFP that “fear dominates” the south.

“We returned to the village a few days ago, but our bags are ready to flee again,” the 53-year-old said.

Hezbollah pulled Lebanon into the wider Middle East conflict in early March when it fired rockets at Israel in retaliation for the killing of Iran’s supreme leader in US-Israeli strikes.

A previous ceasefire meant to take effect in Lebanon in April was never honoured, with each side justifying its attacks by citing alleged violations by the other.

News

Come back to ‘authentic PDP’ – Lagos PDP tells Bode George

Published

2 hours ago

June 21, 2026

EMMANUEL AGAJI

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The Lagos State chapter of the Peoples Democratic Party, PDP, has appealed to Chief Bode George to rejoin the ‘party’s mainstream leadership structure’ to reposition it ahead of 2027.

Mr Hakeem Olalemi, State Organising Secretary of the faction, made the appeal in an interview with the News Agency of Nigeria, NAN, in Lagos on Sunday.

NAN reports that George, a former PDP deputy national chairman, is aligned with the Dr Kabiru Turaki-led National Working Committee, backed by Gov. Seyi Makinde of Oyo State.

George has been a fierce critic of Wike and his actions regarding the PDP since the beginning of the leadership crisis in the party.

Olalemi, who spoke on the state of the party and preparations for the 2027 general elections in the state, said George remained a respected leader and an integral member of the PDP family despite ongoing disagreements within the party.

According to him, George’s experience and contributions to the PDP make him a vital asset to the party.

Olalemi said it was important for the former party national officer to remain within the party’s mainstream leadership structure for progress.

“Chief Bode George is always welcome in the PDP. We have great respect for him and there is room for him within the party.

“Chief Bode George loves PDP. He cannot leave PDP. He is coming back to the mainstream to work for the party’s progress.

“He is our father. He is a foundation member; nobody can ask where he is coming from. We will welcome him back to the fold,” he said.

Olalemi said the PDP remained a united family despite differences among some leaders and members.

News

INEC declares PDP winner of Rivers South-East by-election

Published

6 hours ago

June 21, 2026

EMMANUEL AGAJI

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The Independent National Electoral Commission, on Sunday, declared the candidate of the Peoples Democratic Party, Olaka Nwogu, as the winner of the Rivers South East Senatorial District by-election conducted on Saturday.

Only four political parties and their candidates were cleared by the INEC to contest the June 20 bye-election, including the All Progressives Congress, the People’s Democratic Party, Action Alliance and the Labour Party

The By-election followed the death of the former representative of the Senatorial District, Senator Barry Mpigi, who passed on in February this year.

The poll was contested in seven local government areas that make up the Rivers South-East District. They are Khana, Gokana, Tai. Eleme, Andoni. Oyigbo and Opobo.

Continuing, the INEC Returning Officer for the election, Professor Rosemary Ogu, announced the result at the Rivers South East Senatorial Collation Centre at the Khana Local Government Council Secretariat in Bori, Rivers State on Saturday night.

Ogu declared that Nwogu Olaka Johnson of the PDP secured 46,961 votes to emerge as the winner of the election.

The PDP candidate, Nwogu, an ally of the Minister of the Federal Capital Territory, Nyesom Wike, defeated his closest rival, Osarokaka Ebenezer Erewari of the APC, who polled 1,647 votes.

The Returning Officer stated that Nwogu Olaka Johnson had met the requirements of the law and was accordingly declared elected as the Senator representing the Rivers South East Senatorial District.

Prof. Ogu stated, “The election was contested. The candidates received the following votes. Douglass Fabeke, Male of the political party, AA, received a total of 1175. OsaroKaka Ebenezer Erewar, male, of the APC political party, 1647 votes. Sam Kinani, male, of the LP political party, 367 votes. Nwogu Olaka Johnson, male, of the PDP political party, 47961 votes.

“That Nwogu Olaka Johnson of the PDP, having satisfied the requirements of the law, is hereby declared the winner and is returned elected.”

Meanwhile, the INEC said it is putting measures in place to address glitches arising from the Bimodal Voters Accreditation System in order to ensure a smooth electoral process.

The Head of Department, Voter Education in INEC, Rivers State, Geraldine Ekelemo, disclosed this while speaking with newsmen during an inspection tour of some participating LGAs in the Senatorial District alongside the INEC National Commissioner representing the South-South, May Agbamu he-Mbu.

Ekelemu said INEC made provisions for backup B-VAS machines, saying the devices can be reconfigured in cases where the primary B-VAS malfunctions.

She said, “Concerning the hitches, INEC was proactive. The technical hitches that we saw with one or two polling units and the B-VAS assigned to that particular polling unit, INEC was proactive in ensuring that backup B-VAS were supplied and distributed to each of these LGAs.

“And we had technical staff on the ground in each of these LGAs to quickly reconfigure another B-VAS to replace the malfunctioning B-VAS.

“Each of the seven LGAs had additional B-VAS to serve as backups. These are all the things INEC is doing to ensure that those gaps are immediately closed.”