News

FIRS Boss Reveals Multiple Revenue Collection Agencies Responsible For leakages

Published

10 months 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

Reps Pass Bill to Establish More Specialist Eye Care Centres in Nigeria

Published

21 minutes ago

December 11, 2024

Naijablitznews

By Gloria Ikibah

The House of Representatives at the plenary on Wednesday passed through second reading, a Bill seeking to amend the National Eye centre Act, 2004, to provide for the establishment of more specialist eye care centres.

The proposed legislation was sponsored by the Deputy Speaker of the House of Representatives, Hon. Benjamin Okezie Kalu, Hon. Babajimi Benson and 5 other lawmakers.

Leading the debate on its general principles, Kalu noted that the bill seeks to enhance access to qualitative eye care services across the six geo-political zones of the nation.

According to him, the proposed amendments seek to address the pressing need for more specialist eye care centres to cater for the growing population and address the rising cases of eye diseases in the country.

Making reference to reports, he lamented that preventable and treatable eye conditions are a leading cause of disability in Nigeria, with cataracts, glaucoma, and refractive errors remaining prevalent in many parts of the country, especially the rural areas where access to specialized care is limited.

He expressed optimism that the proposed amendments will rectify this situation by expanding the establishment of National Eye Centres to strategic locations across the six geopolitical zones of the country.

He added that by doing so, we aim to provide a framework that will enhance and improve access to quality eye care, ensuring that no Nigerian is left behind due to geographical barriers.

Kalu said, “I rise to lead the debate on the general principles of a Bill for an Act to amend the National Eye Centre Act, Cap N38, Laws of the Federation of Nigeria, 2004, which seeks to enhance access to qualitative eye care services across the six geo-political zones of our beloved nation. The proposed amendments seek to address the pressing need for more specialist eye care centres to cater for the growing population and address the rising cases of eye diseases in the country. The Bill was read for the first time on Wednesday, 20thDecember, 2023.

“As we are all aware, access to quality healthcare services, especially in specialised areas like eye care, is crucial for the well-being of our citizens. The statistics reveal that preventable and treatable eye conditions are a leading cause of disability in Nigeria, with cataracts, glaucoma, and refractive errors remaining prevalent in many parts of the country, especially the rural areas where access to specialized care is limited. Unfortunately, the existing National Eye Centre in Kaduna, though commendable in its efforts, is unable to adequately meet the eye care needs of our vast and diverse nation. This inadequacy has led to disparities in access to eye care services, particularly for those in remote or underserved areas.

“The proposed amendments, thus aim to rectify this situation by expanding the establishment of National Eye Centres to strategic locations across the six geopolitical zones of the country. By doing so, we aim to provide a framework that will enhance and improve access to quality eye care, ensuring that no Nigerian is left behind due to geographical barriers. We hope to ensure that every Nigerian, regardless of location, can access quality eye care services. This is not just a matter of healthcare; it is a matter of equity and social justice. This Bill which seeks to enhance and improve access to quality eye care in Nigeria has the following key provisions.

“The creation of 5 additional Specialist Eye Care Centres spread across the remaining 5 geopolitical zones of Nigeria not originally covered by the principal legislation which only provided for an Eye Care Centre in Kaduna, North West Nigeria. The establishment of separate Boards to govern each centre and academic committees to oversee academic affairs. These bodies will not only ensure effective management and coordination of the Centres’ activities by overseeing their day-to-day operations, but shall also drive research and educational initiatives in ophthalmology, thereby fostering a culture of excellence and innovation in eye care. In presenting this bill, we are reaffirming our commitment to the visual health and well-being of every Nigerian. By establishing additional centers, we can decentralize eye care services, reduce travel costs for patients, and ultimately protect and preserve the precious gift of sight for all citizens. Honourable Colleagues, I urge you all to support this Bill as it represents a significant step towards improving healthcare delivery in Nigeria, particularly in the critical area of eye care. Together, let us illuminate the path to a future where quality eye care is not a luxury but a fundamental right for every Nigerian.”

Thereafter the bill was put to a voice vote by the Speaker, Rt Hon Tajudeen Abass, GCON who presided over the session and it was passed and referred to the committee on speciality Healthcare.

News

Ugochinyere Lacks the Right to Speak for Rivers People – Rep Bob

Published

2 hours ago

December 11, 2024

Gloria Ikibah

By Gloria Ikibah

The member representing Abua/Odual and Ahoda East Federal Constituency of Rivers State, Rep. Solomon Bob (PDP, Rivers) has said that the spokesperson of the opposition lawmakers in the House, Rep. Ikenga Ugochinyere does not have the legal right to speak for the people of Rivers State.

Rep. Bob who stated this on Wednesday at a media briefing with Journalists in Abuja, accused Ugochinyere of operating outside his legal and legislative boundaries, constantly abandoning his constituency to speak on issues affecting Rivers State and creating problems in the state.

The Rivers lawmaker said though Ugochinyere is a federal lawmaker, it does not confer legality on him to speak on issues affecting Rivers State, adding that only Lawmakers from the state who are aware of the issues can speak for the state.

He accused Ugochinyere of carrying out activities in the House which should not be condoned, alleging that he is being used by a Rivers son to perpetuate the illegality he is carrying out.

According to Bob, rather than concentrate so much attention on the issues in Rivers, “Ugochinyere should pay more attention to developments in Imo state where children cannot go to school on Mondays and traders and workers cannot go about their lawful duties on Mondays”.

He described it as unfortunate that Rep. Ugochinyere who cannot speak on development in Imo state was spending so much energy on Rivers state, saying that the duty of the lawmaker is representation, lawmaking and oversight.

He said “Ugochinyere lacked the capacity to engage in the lawmaking”.

“I’ve not seen him engage in any lobbying activity in the House of Representatives. He’s been here for a year plus now”, he added.

He said further that sections 49 and 72 of the Constitution tells you clearly that no federal constituency or state territories and by implication, you cannot speak for any place other than where you represents.

“I have tried to put these issues before the House leadership, to call them to order. We as a caucus have written to the leadership and to the Speaker particularly, specifically, to take action on this”, he added.

While questioning Ugochinyere’s rise to becoming the chairman of a major committee in the House as a first timer in the House, Bob asked the Speaker to remove him as chairman of a standing Committee of the House.

News

Bill for Establishment of Additional Specialist Eyecare Centres in Nigeria Pass Second Reading

Published

2 hours ago

December 11, 2024

Gloria Ikibah

By Gloria Ikibah

The House of Representatives has passed through second reading, a Bill seeking to amend the National Eye centre Act, 2004, to provide for the establishment of more specialist eye care centres.

The proposed legislation was sponsored by the Deputy Speaker of the House of Representatives, Rep. Benjamin Okezie Kalu, Hon. Babajimi Benson and 5 other lawmakers on Wednesday at plenary.

Leading the debate on the general principles of the bill, Kalu noted that the bill seeks to enhance access to qualitative eye care services across the six geo-political zones of the nation.

He added that by doing so, we aim to provide a framework that will enhance and improve access to quality eye care, ensuring that no Nigerian is left behind due to geographical barriers.

Thereafter the bill was put to a voice vote by the Speaker, Rep Tajudeen Abass, who presided over the session and it was passed and referred to the committee on speciality Healthcare.