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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.”

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Dangote Refinery reduces price of fuel

Published

4 minutes ago

June 16, 2026

Austin Ojomah

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By Ojomah Austin.

The Dangote Petroleum Refinery has announced a reduction in the ex-depot price of Premium Motor Spirit (PMS), also known as petrol, lowering its gantry price by ₦75 per litre amid signs of stability in the global energy market.

In a circular issued to fuel marketers on Monday, the refinery disclosed that the new price adjustment takes effect from midnight, June 16, 2026.

Under the revised pricing structure, the gantry price of petrol has been reduced from ₦1,250 per litre to ₦1,175 per litre, providing some relief to marketers and consumers after months of rising fuel costs.

The refinery also announced a reduction in its coastal supply price, which dropped from ₦1,595,790 per metric tonne to ₦1,495,215 per metric tonne.

According to the company, the decision was influenced by the recent easing of geopolitical tensions in the Middle East, a development that has helped moderate global crude oil and energy prices.

“Following the de-escalation of tensions in the Middle East, which has impacted energy prices, we wish to inform you that we have reviewed our Premium Motor Spirit gantry and coastal prices,” the refinery stated in the notice to marketers.

The company further clarified that all outstanding unloaded gantry volumes would be recalculated using the new rate from the effective date.

“Kindly note that all outstanding unloaded gantry volumes will be repriced at the new rate effective 12:00 a.m., June 16, 2026. We sincerely appreciate your continued patronage and assure you of our unwavering commitment to reliable product supply and excellent service delivery,” the statement added.

Marketers Yet to Reflect New Price

Despite the refinery’s reduction, retail pump prices across many parts of the country remained significantly higher as of Monday.

Industry data from Petroleumprice.ng indicated that several filling stations were still selling petrol at around ₦1,240 per litre, suggesting that consumers may not immediately benefit from the refinery’s latest adjustment until existing stock is exhausted and new supplies enter the market.

The development positions Dangote Refinery as one of the most competitively priced suppliers in the domestic petroleum market.

Global Oil Prices Begin to Retreat

The latest price cut comes as pressure in the international crude oil market begins to ease following reports of renewed diplomatic engagements between the United States and Iran over the reopening of the strategic Strait of Hormuz.

Global oil prices had experienced significant volatility over the past three months due to hostilities involving the two countries.

The development positions Dangote Refinery as one of the most competitively priced suppliers in the domestic petroleum market.

Global Oil Prices Begin to Retreat

Global oil prices had experienced significant volatility over the past three months due to hostilities involving the two countries.

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Deliver justice fast, ignore tribe, status – Tinubu to judges

Published

3 hours ago

June 16, 2026

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President Bola Ahmed Tinubu has called on the Nigerian judiciary to ensure the delivery of fair and timely justice, warning that a compromised legal system poses a threat to democratic stability.

The president made the call on Monday during the commissioning of the Court of Appeal Abuja Division building complex in Dakibiyu, Abuja.

The development was disclosed in a statement posted on the official page of Vice President Kashim Shettima, who represented the President at the event.

According to the statement, Tinubu expressed concern over delays in the administration of justice and the growing frustration among citizens over prolonged court cases and case backlogs.

He said the justice system must remain accessible, fair and efficient to sustain public confidence in the judiciary.

“To my Lords Justices, as you move into this complex, Nigeria asks one thing of you: let justice be swift. Let it be fair. Let it be blind to status, tribe, or purse. Let the common man feel that this Court is truly his last hope,” Tinubu said.

The president stated that the newly commissioned Court of Appeal complex reflects his administration’s commitment to strengthening the justice sector under the Renewed Hope Agenda.

According to him, providing a befitting working environment for judicial officers remains part of efforts to improve the effectiveness of the nation’s justice system.

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Court adjourns El-Rufai’s trial to June 24 over absence of two co-defendants

Published

3 hours ago

June 16, 2026

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The Federal High Court sitting in Kaduna on Monday adjourned the trial of former Kaduna State Governor Nasir Ahmad El-Rufai to June 24, 2026, following the failure of two co-defendants to appear before the court.

El-Rufai, who is being prosecuted by the Independent Corrupt Practices and Other Related Offences Commission (ICPC) over allegations of abuse of office, financial impropriety, and fraud during his tenure as governor, was present in court when the matter was called.

The former governor arrived at the court premises at about 9:30 a.m., accompanied by officials of the ICPC, as well as operatives of the Department of State Services (DSS) and the Nigeria Police Force.

However, proceedings could not continue as scheduled after two other defendants named in the charge failed to appear before the court.

Following submissions by counsel, the presiding judge adjourned the matter to June 24, 2026, for the continuation of the hearing.

El-Rufai has consistently denied all allegations levelled against him, insisting that all actions taken during his administration were carried out in accordance with the law and established procedures.

The ICPC, on its part, alleges that public funds were released for projects that were either not executed or were improperly handled during the former governor’s administration.

The anti-corruption agency maintains that the charges against the defendants are supported by evidence gathered during its investigations and has expressed readiness to prosecute the case to its logical conclusion.

At previous sittings, the court had entertained arguments relating to bail conditions and preliminary applications filed by the defence team.

Monday’s proceedings were expected to feature further arguments on pending motions before the unexpected absence of the two co-defendants stalled the hearing.

The trial has continued to attract considerable public attention, given El-Rufai’s prominence in national politics and his eight-year tenure as governor of Kaduna State between 2015 and 2023.

With the matter now adjourned, both the prosecution and defence teams are expected to return to court on June 24 for the continuation of proceedings.