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Multiple Taxation: FIRS Partners With MATAN For VAT Remittance From Informal Sector
The Federal Inland Revenue Service (FIRS) has partnered with the Market Traders Association of Nigeria (MATAN) to collect and remit Value Added Tax (VAT) to the FIRS from the country’s markets, especially in the informal sector.
The Association which has a membership of well over 40 million traders across the country’s 774 local governments, and 36 States plus the Federal Capital Territory is the biggest player in Nigeria’s market space.
The details of the FIRS’ partnership with MATAN was disclosed yesterday at a Stakeholders Engagement Programme on the VAT DIRECT Initiative, held in Lagos State. The partnership will see the FIRS collaborating with the association to deploy technology to enumerate traders for collecting and remitting VAT to the Service, consequently leading to an expansion of the tax net and increased revenue for the Federation.
The VAT DIRECT Initiative (VDI) is a program designed to foster collaboration between the FIRS and the market place, especially the informal sector, in the collection and remittance of the Value Added Tax (VAT) using technology.
Speaking during the Stakeholder Engagement, Mr. Muhammad Nami, Executive Chairman FIRS highlighted that the initiative was the first of its kind, and that it was crucial to revenue generation and also to eliminating multiple taxation, especially from the informal sector.
The Executive Chairman, FIRS who is also the Chairman of the Joint Tax Board (JTB) further stated that the government is worried about the multiplicity of taxes, and that the Service and JTB were working on various modalities of addressing this challenge and that this partnership has laid a very good foundation for the government to address the issue of multiple taxation and extortion by tax officials, tax agents and touts in the market place.
He further noted that the Service would collaborate with security agencies, especially the Nigeria Police, to deal with illegal tax collection by touts in markets.
“One important area of our collaboration is the issue of providing adequate security in the markets. We are aware of the challenges that you have faced in the past with miscreants, self-imposed tax collection agents, and touts.
“I want to assure you that as part of this initiative, we will be collaborating with the relevant security agencies particularly the Nigeria Police Force to tackle all forms of touting and illegal tax collection by miscreants and keep them away from your markets.”
Mr. Nami further noted that the success of this collaboration would lead to increased revenue for the country, and in turn provide government the needed resources to fund infrastructure and other social amenities.
“The successful outcome of this collaboration and additional revenue accruable will have multiplier effects on all sectors of the economy as the government will have more revenue to provide the needed social amenities and infrastructure in critical sectors.
“An improved VAT collection will improve the revenue base of the States and Local Governments at the sub-national level and the citizens will be the ultimate beneficiaries.
“This initiative is very important to the government, particularly at this moment of dwindling revenues from the petroleum sector and therefore, requires that we put all hands on deck and optimally explore all available opportunities.
“The administration of VAT in the informal sector is characterized mainly by a low level of compliance and a lack of awareness in terms of obligation and liability. It, therefore, becomes necessary to leverage the MATAN platform to positively change the status quo,” Mr. Nami stated.
He also noted that to ensure transparency and accountability of the project operations, a combined monitoring and evaluation team comprising both organisations would be formed.
During the Stakeholder Engagement, the Executive Chairman, FIRS also unveiled an Identity Card that is to be given to each trader upon enumeration; the card contains their tax identification number and other personal details.
The VAT Direct Initiative Stakeholder Engagement was attended by the Secretary of the Joint Tax Board, representatives from Deposit Money Banks, Iyalojas of Markets across the country, members of various trade clusters, representatives from all major markets across the country, as well as officers of the Federal Inland Revenue Service.
Demands Full Disclosure on Refurbished Refineries
A coalition of lawyers and civil society organizations (CSOs) today submitted a Freedom of Information (FOI) request to the Nigerian National Petroleum Corporation Limited (NNPCL), seeking full disclosure on the status of refineries refurbished during the tenure of Mele Kyari, the former Group Chief Executive Officer.
The Concerned Citizens Against Corruption, leading the coalition, demanded transparency and accountability on the reported expenditure of $4 billion on refineries repairs.
Led by Comrade Ogwuche Emmanuel, the group alleged inflation of refineries rehabilitation contracts, fraudulent allocation of crude oil proceeds, misappropriation of funds, and other questionable practices during Kyari’s tenure from July 2019 to April 2025.
The FOI request seeks specific details on payments to consultants and contractors, crude oil allocations, budgetary provisions for the AKK Pipeline Project, documentation on gasoline imports, and information on crude-backed loans and oil exploration activities.
The group emphasized the need for accountability and restoring public trust in NNPCL’s operations.
They urged the NNPCL to provide the requested information within the stipulated timeframe under the Freedom of Information Act.
“We are concerned about the growing reports of monumental Inflation of the Refineries Rehabilitation Contracts with allegations that the costs of refurbishing the refineries were significantly inflated, Fraudulent Allocation and Mismanagement of Crude Oil Proceeds, Misappropriation of Funds in the AKK Gas Pipeline Project, Fuel Subsidy Fraud, Value Review for NNPCL’s Crude-Backed Loans, and Fraudulent Oil Exploration Activities that have yielded no benefits to the nation,” the letter signed by Comrade Ogwuche Emmanuel said.
“Our findings, supported by reliable intelligence, suggest a pattern of institutionalizing of these questionable practices during Mallam Kyari’s tenure. As an organisation of law-abiding Nigerians, who are affected by these identified issues, we require information to seek judicial intervention.
“Consequently, we require the following information from July 1, 2019 to April 29, 2025: Specific details of payments to consultants and contractors, work scopes, and the justification for payments for the Port Harcourt, Warri and Kaduna Refineries.
“Information regarding crude oil allocations and financial transactions under the guise of pipeline security payments. Details of the budgetary provisions, foreign financing arrangements, and physical progress of the AKK Pipeline Project.
“Documentation including ship records, bills of lading, and discharge certificates for gasoline imports during the stated period. Information regarding the structure, terms, and purposes of crude-backed loans taken from 2019 to date.
“Documentation and feasibility outcomes of oil exploration activities in Gombe, Bauchi, Ogun, and Nasarawa states. Given the gravity of the allegations that necessitated this request, it is imperative that the NNPCL provides full transparency on the expenditures and activities undertaken during Mallam Kyari’s tenure”.
The All Progressive Congress (APC) Chairman for Zamfara State, Alhaji Tukur Umar Danfulani, has lauded Nigeria’s Minister of State for Defence, Dr Bello Muhammad Matawalle, for his unwavering support.
The commendation came as Danfulani presented his appointment letter as the new Board Chairman, Federal Medical Centre, Azare, Bauchi state, a position conferred by President Bola Ahmed Tinubu.
During a visit to the minister’s office, Tukur Danfulani expressed deep gratitude to President Tinubu for the trust and opportunity, pledging to execute his duties with integrity and dedication to align with the president’s expectations.
“I am profoundly grateful to His Excellency, President Bola Ahmed Tinubu, for this appointment and his generosity,” Danfulani said.
He also acknowledged Dr Matawalle’s consistent backing, crediting the minister’s support as instrumental to his new role.
In response, Dr Matawalle urged Danfulani to uphold honesty, commitment, and patriotism in his leadership at the Medical Centre, emphasising the importance of serving with distinction.
The appointment marks a significant step in strengthening Nigeria’s healthcare administration, with Danfulani expected to bring his experience to enhance the operations of the Federal Medical Centre in Azare, Bauchi state.
Operatives of the Economic and Financial Crimes Commission (EFCC) have arrested businessman Emeka Okonkwo, popularly known as E-Money, on Tuesday morning.
E-Money, who is the CEO of Emmy Cargoes Nigeria Limited and Five Star Music, was arrested in Lagos State for alleged abuse of the naira.
He is being held at the EFCC facility in Lagos, according to sources who confirmed his arrest to ELANZANEWS on Tuesday.
According to the source, E-Money is being investigated for allegedly spraying both Naira and US dollars at a party in Lagos in violation of Nigeria’s currency laws.