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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.”

News

INEC ought to have archived recall petition long ago-Senator Natasha

Published

6 hours ago

April 3, 2025

ADMIN

Senator Natasha Akpoti-Uduaghan on Thursday hailed the Independent National Electoral Commission (INEC) for rejecting a petition to recall her as the lawmaker representing Kogi Central Senatorial District.

The lawmaker, who was a guest on Channels Television’s Politics Today, said the electoral umpire should have thrown out the petition long before it did on April 3, 2025.

“I’m a lawyer. I’m a senator and I understand how Nigeria works. For me, the most important thing is this recall process has been stalled.

“I give kudos and credit to INEC even though I believe they should have thrown it away from the get-go.

“I think it was void ab initio because there is no law in the Electoral Act that says a petition should be discarded just because there is no address but again, what if the address is false?”

The Peoples Democratic Party (PDP) chieftain argued that most of the addresses provided in the petition for her recall were false because most houses in her district weren’t labelled.

Even though INEC did count 208,000 signatures, I bet you if they had gone into the verification stage, they would have struggled to even have 500 people come out to attest to signing that,” she added.

News

We’re putting together new 2025 Budget for Rivers-Ibas

Published

7 hours ago

April 3, 2025

ADMIN

…hosts Delegation Of Rivers NASS Caucus

The Administrator of Rivers State, Vice Admiral (Rtd) Ibok Ete Ekwe Ibas, has said that an appropriation bill for 2025 is being articulated to provide for critical development concerns in healthcare delivery, education, agriculture and infrastructure.

Vice Admiral (Rtd) Ibas also said that the anticipated budget will cater to creating more employment opportunities for Rivers people and advance delivery of technology in critical facets of public life.

The administrator gave the hint when he hosted the delegation of Rivers State caucus at the National Assembly, led by Dr Barinada Mpigi, the Senator representing Rivers South-East District, at Government House in Port Harcourt on Thursday.

Those on the delegation included Senator Allwell Onyesoh, the minority leader of the House of Representatives, Rep. Kingsley Chinda, Hon Dumnamene Dekor, Hon Solomon Bob, Hon Cyril Godwin Hart,
Hon Blessing Amadi, Hon. Felix Nwaeke, Hon Kelechi Nwogu, and Hon Victor Obuzor

Ibas said he has been resolute, since assumption of office, to restore law and order, and with support from the security agencies, an environment has been created where Rivers residents feel valued and safer.

The Administrator stated that the commitment is to make Rivers a model of peace in the comity of States, with a stable economy and citizens courageous to pursue their livelihood without fear or molestation.

“In addition to our peace building efforts, we are also focused on the economic stability and development of Rivers State.

“Since the Supreme Court verdict on the state’s budget, we have acted swiftly and decided to put together a new budget that reflects our commitment to healthcare, education, social services, and continued infrastructural development.

“We have worked diligently to ensure that the process is transparent, inclusive, and most importantly expedited. Our goal is to ensure that we do not lose any more time in making the necessary investments that will improve the lives of citizens.”

Vice Admiral (Rtd) Ibas stated: “The budget which is been finalized focuses on creating job opportunities and investing in key sectors such as agriculture, infrastructure, and technology.

“We understand the urgency of this initiative, and we are committed to ensuring that they are implemented without delay.”

The Administrator noted that to get the task done, the support of the legislators will be required as key representatives of Rivers State in the National Assembly.

He sued for their assistance in securing the necessary resources and legislative backing that would bring the initiative of his administration to fruition.

“Your partnership is critical to success in ensuring that Rivers State remains on the path of progress and enduring peace for future generations.”

He explained that in the face of the challenges that beset Rivers, which led to the State of emergency declared by President Bola Tinubu, dialogue, community engagement and reconciliation were deplored to build trust among the citizenry.

He noted that the people of Rivers State have shown incredible resilience and patience in the efforts taken so far to restore the State back to the path of peace and respect for the law.

Vice Admiral (Rtd) Ibas assured that his administration remains committed to achieving enduring peace for the state.

He said: “Beyond security, we have prioritised community engagements as a central part of our strategy. Dialogue, reconciliation, and inclusivity have been key to building trust among our people.

“We are determined to strengthen the bond of unity in Rivers State and to foster an environment where every citizen feels valued, heard, and respected. Together, we are making strides in ensuring that peace becomes a permanent feature of our state.”

Responding, Senator Barinada Mpigi, representing Rivers South-East District, said they are dedicated representatives of Rivers people at the National Assembly and resolved to support all efforts that will bring development to the State.

While commending the administrator for the modest successes he had achieved so far, Senator Mpigi pledged the support and cooperation of the legislators to ensure the return of the state on the path of law and order.

News

Just in: Shettima jets out to attend Senegal’s independence

Published

10 hours ago

April 3, 2025

Austin Ojomah

Vice President Kashim Shettima has departed Abuja for Dakar, Senegal for official assignment.

The VP is expected to represent President Bola Ahmed Tinubu at the West African nation’s 65th Independence Anniversary celebrations.

Senegal marks its Independence Day on April 4 each year, commemorating its liberation from French colonial rule in 1960.

The annual celebration is a significant event featuring national parades, cultural displays, and ceremonies highlighting the country’s achievements and unity.

A statement issued on Thursday by Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, said Shettima’s participation followed an official invitation from Senegalese President, Bassirou Diomaye Faye.

This underscored the strong diplomatic and economic ties between Nigeria and Senegal.

The two nations share longstanding relations, particularly within the Economic Community of West African States (ECOWAS), fostering cooperation on regional security, trade, and development initiatives.

The event is expected to reaffirm Senegal’s commitment to democratic governance and regional cooperation.

Vice President Shettima is scheduled to return to Nigeria immediately after the one-day celebrations, continuing his engagements in national development and diplomatic outreach.