News

FIRS Boss Reveals Multiple Revenue Collection Agencies Responsible For leakages

Published

1 year ago

February 28, 2024

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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Just in: Tinubu’s son Seyi, Tops Controversial List As Lagos Guber Race Ignites Political Wahala

Published

4 hours ago

May 14, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The race to succeed Governor Babajide Sanwo-Olu in 2027 is gradually gaining momentum, with political stakeholders and groups across Lagos State already rooting for their preferred candidates.

Among those generating buzz is Femi Gbajabiamila, Chief of Staff to President Bola Ahmed Tinubu and former Speaker of the House of Representatives.

A growing number of party faithful and influential figures are backing him, with popular Nollywood actor and lawmaker, Desmond Elliot, reportedly leading a ‘silent’ push for Gbajabiamila to emerge as the APC flagbearer in the next gubernatorial election.

Supporters are said to be banking on his close ties to the President and long-standing political experience, which they believe make him a strong contender.

“Gbajabiamila is not just a seasoned legislator. Now as Chief of Staff to the President, he has added executive experience.

“That’s the kind of leadership Lagos needs,” said Famous Oloyede, an APC chieftain from Surulere.

However, some party members believe that by 2027, Gbajabiamila, who will be 64, may be too old to govern a complex and fast-moving state like Lagos.

“He should stay back in Abuja and continue supporting the President. Lagos needs someone younger; and besides, it’s time another administrative district takes the seat,” a senior party source revealed.

Lagos State is organised into five administrative districts, collectively called IBILE, namely Ikorodu, Badagry, Ikeja, Lagos Island, and Epe.

Notably, the last four governors of the state, Bola Tinubu, Babatunde Fashola, Akinwunmi Ambode and Babajide Sanwo-Olu, have all hailed from either Lagos Island or Epe.

Even Alhaji Lateef Jakande, the state’s first civilian governor, identified as a native of Lagos Island.

The clamour for 2027 is not one-sided. Stakeholders from Epe, a region that once produced former governor Akinwunmi Ambode, are also pressing for political rebalancing.

Following Ambode’s fallout with the APC leadership, many indigenes believe Epe has been marginalised in the state’s power structure.

As a result, attention has shifted to the current Minister of State for Health and Social Welfare, Dr Maruf Tunji Alausa, who hails from Epe. Many locals view him as a competent and loyal figure capable of restoring Epe’s influence in Lagos politics.

“Epe has been marginalised for years,” said Olugbede Adekalu, a strong APC member.

“Ambode was not allowed to complete his second term, unlike others before him. It’s time to correct that injustice,” he said.

Speaker of the Lagos State House of Assembly, Rt Hon Mudashiru Obasa, is also being quietly touted by political and religious circles.

A notable Islamic cleric recently expressed support for Obasa’s candidacy, citing his legislative experience and grassroots popularity.

While Obasa has yet to make a formal declaration, he recently made a subtle remark that has further fueled speculations.

Speaking during a public engagement, the Speaker said, “Also, becoming governor is secondary; it is something that I have not given serious consideration. Nevertheless, that does not mean I am too young or lack experience to run; whereas, those who have been before me are not better off.”

Observers believe Obasa’s statement was a calculated message to signal openness to the race without making an outright announcement.

Also making the rounds is the name of Seyi Tinubu, son of President Bola Tinubu.

While he has not publicly declared interest, speculations are rife, with several diaspora groups reportedly rooting for him.

This development has placed the party and the Governance Advisory Council (GAC), the highest decision-making body of the APC in Lagos, in a dilemma, especially as President Tinubu has remained silent despite the growing clamour for his son’s potential candidacy.

In addition to the growing field of aspirants, fresh agitations are emerging from Ikorodu, one of Lagos State’s largest administrative districts under the IBILE structure.

Despite the fact that the current Deputy Governor, Obafemi Hamzat, hails from Iga Egbe, a traditional compound within the Ikorodu Division, many stakeholders are insisting the district is yet to be adequately represented at the top.

According to party insiders, there is mounting support for either Rep Babajimi Benson or Hamzat himself to emerge as the next governor.

However, should neither of them clinch the ticket, strong lobbying is ongoing for Hon Abike Dabiri-Erewa, former House of Representatives member and current Chairman of the Nigerians in Diaspora Commission, to be considered for the position of deputy governor, especially if the governorship goes to another district.

“Ikorodu deserves a real shot at the governorship. It’s one of the most loyal and populated zones in Lagos, yet we’ve never truly had our turn,” said a party source.

While some argued that Ikorodu had a brief taste of power through Abiodun Ogunleye, who served as deputy governor during Tinubu’s administration, a party member countered that Ogunleye’s tenure, just 14 days between May 15 and May 29, 2007, was too short to be considered meaningful representation.

A party insider from Ogolonto, a community in Ikorodu, stated:

“Ogunleye’s 14-day tenure was purely symbolic. You can’t call that real representation. That’s not power-sharing, it was a token gesture. Ikorodu deserves more than a fleeting appointment.

“Serving just 14 days as deputy governor hardly qualifies as meaningful leadership. Ikorodu deserves more than a fleeting appointment.”

Reflecting growing calls for more equitable power rotation across Lagos, some party members have maintained that adjoining districts long overlooked deserve a turn in the executive seat.

“Power should shift to Badagry now. They’ve never produced either a governor since 1999,” another party member told DAILY POST.

Another name quietly gaining traction within APC circles is that of Senator Mukhail Adetokunbo (Tokunbo) Abiru, who currently represents Lagos East Senatorial District in the National Assembly.

This district encompasses the local government areas of Epe, Ibeju-Lekki, Ikorodu, Kosofe and Somolu

With many zones clamouring for recognition and no clear frontrunner emerging yet, one thing is clear: the contest for the soul of Lagos in 2027 will be one of the most keenly watched and hotly contested in the state’s recent political history.

News

Just in: FG receives Wigwe’s helicopter crash report from NTSB

Published

4 hours ago

May 14, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

The Director-General of the Nigeria Safety and Investigation Bureau (NSIB), Alex Badeh, has confirmed that the United States National Transportation Safety Board (NTSB) shared the final report on the helicopter crash that claimed the lives of former Group Chief Executive Officer of Access Holdings Plc, Herbert Wigwe, his wife Doreen, their son Chizi, former NGX Group Chairman Abimbola Ogunbanjo, and two pilots.

Recall that the tragic crash occurred on February 9, 2024, when an Airbus EC130B4 helicopter operated by Orbic Air, LLC crashed near Halloran Springs, California.

The NTSB’s final report outlined the primary causes of the crash, identifying “pilot disorientation” and a violation of flight protocols as key contributors to the tragedy.

Specifically, the report pointed to the decision to proceed under visual flight rules in instrument meteorological conditions as a significant factor in the crash.

Badeh stated, “The NTSB shared the report directly with the NSIB as we are interested parties and in accordance with ICAO Annex 13 protocols.

“We do not necessarily comment on accident reports as they are not meant to apportion blame but to improve safety and prevent reoccurrence.”

When asked if the NSIB was satisfied with the findings in the NTSB report, Badeh emphasised that the NSIB does not engage in commenting on accident reports.

He clarified that the primary purpose of such reports is not to assign blame but to ensure that measures are put in place to enhance safety in the aviation sector.

“The report’s essence is to improve safety across the sector. The NSIB is not the head of aviation in Nigeria,” Badeh reiterated.

Badeh further confirmed that the family of the deceased had been in communication with the NTSB throughout the investigation process, from the time of the crash until the final report was released.

“The family of the deceased has been in contact with the NTSB at the time of the accident till the close of the investigation,” Badeh stated.

News

Insecurity!Six Terrorists Silenced, Camps Destroyed as Troops Sweep Sokoto, Zamfara Forests

Published

4 hours ago

May 14, 2025

Kayode Sanni-Arewa

By Kayode Sanni-Arewa

In a daring continuation of Operation of Troops FANSAN YANMA Phase V, the troops have penetrated deep into terrorist strongholds across parts of Sokoto and Zamfara States, dismantling layers of insurgent infrastructure and recovering weapons.

The multi-day operation, which began with swift assaults on identified camps, saw troops advancing through highly hostile territory, including Gidan Madi, Tsamiya Village, Tudun Ruwa, Alela, and several forested areas notorious for harbouring terrorist cells.

Security sources told Akelicious that the troops encountered multiple ambushes laid by fighters of the Lakurawa terror faction, a splinter group known for its entrenched operations in the North West region.

Despite the resistance, the troops pressed forward, clearing key hideouts beyond Alela village, including the Areo general area, Damoria, Tumuna Village, and the densely wooded Goboro Forest.

“These locations have been long used by terrorists as logistics hubs and operational bases for launching attacks on civilian communities and security convoys,” a senior military source familiar with the operation said.

The military offensive did not come without cost. One soldier was wounded in action (WIA) during the series of engagements, while a vigilante supporting the operation paid the ultimate price. The wounded soldier was promptly evacuated to the 8 Division Military Hospital (8 DMSH) in Sokoto for treatment.

Troops also neutralised six terrorists affiliated with the Lakeurawa faction during the operation. Several others escaped with varying degrees of gunshot wounds, fleeing into the surrounding forest areas

Among the arms recovered from the cleared camps were various weapons, magazines, two handheld radios, and motorcycles which were some of the items believed to have been used for communications and mobility within the camps