Opinion
FIRS And Its Historic N10.1 Trillion
When the music is good to our ears, we dance. And if we cannot dance, then we clap. Or we do both!
This piece is not to sing the praises of a government agency without rhyme or reason. It is a fact based opinion piece on the historic feat of the Federal Inland Revenue Service (FIRS) in recording its highest ever tax collection of N10.1 trillion in a single year.
The first indication that FIRS could cross the N10 trillion mark came in September last year when it collected N7.5 trillion in tax in nine months to surpass its entire 2021 figure of N6.4 trillion.
It was at that point that it became obvious that the reforms introduced by Muhammed Nami within a year of assuming office as FIRS Executive Chairman in 2019, had began to yield dividends.
Indeed the fruits of those reforms began to show in 2021, one year after the global lockdown caused by COVID-19, with a tax collection figure of N6.4 trillion,which at the time was the highest ever revenue recorded by the Federal tax agency.
Even at that, the 2022 target of N10.4 trillion looked like a tall dream. Not because of capacity or the lack of it, but because adding N4trillion to the historic figure of the previous year simply looked unattainable at a time much of the world was still feeling the impact of a global economic crisis.
But surprisingly, the FIRS chairman, like a man with a gift of clairvoyancy had told the House of Representatives Committee on Finance at a public hearing on the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), sometime in August 2021, that the agency was projecting to collect tax revenue of over N10 trillion for 2022.
And that was exactly what happened with the 2022 Performance update showing an unprecedented figure of N4.09 trillion from the oil sector and N5.96 trillion from non-oil to bring the total collection for the year to N10.1 trillion.
So what were the factors responsible for the two back-to-back record collection feats?
A look at what Nami brought to the table after assuming office may provide some insight into what has been happening in the last 3 years.
He came into FIRS with a private sector background and, I dare say, mentality and immediately set out what he wanted to achieve in a four-point agenda: to rebuild the FIRS institutional framework; to improve collaboration with stakeholders; to make the FIRS a customer-centric institution and to make the agency a data-centric institution.
These were the pegs on which the historic feat could be hung especially as the reforms played major roles in breaching the N10 trillion revenue collection mark.
“The reforms introduced at different times from 2020 are gradually yielding fruits. By the close of 2022, the Service had fully restructured the administration of the Service for maximum efficiency and achieved internal cohesion such that all functional units are working in unison towards the achievement of set goals.
“As a result of conducive environment created for staff, officers of the Service are pulling their weight on the global stage with international recognitions and awards.
“The Service had also automated most of the administrative and operational processes. A major leap was the full deployment of the TaxPro Max for end-to-end administration of taxes in June 2021. The module for the automated TCC went live 1st January 2023 while taxpayers had already downloaded over 1,000 TCCs this year without having to visit FIRS office,” the report read.
It is interesting to note that the report also stated that the N10.1 trillion does not include tax waived on account of various tax incentives granted under different laws which according to FIRS amounted to N1,805,040,163,008.
This is certainly a huge figure that shows the possibility of the agency doing better not only in the 2023 financial year but also in coming ones.
In the midst of all these is the long standing vow by President Muhammadu Buhari to break Nigeria’s over reliance on oil and from all indications the FIRS management has keyed into it with its performance especially in the last two years.
This ongoing effort to wean the country from its over dependence on revenue from oil is a major reason why Nigeria did not suffer the full effect of the drop in global oil prices.
Today, the revenue projection for 2023 showed that 78% of total revenue is coming from the non-oil sector and of course the FIRS is bound to be a major contributor.
And this is visible from how the agency has shown, for two years running, that it has the necessary capacity to be the lead contributor to the good performance of the non-oil sector.
But more importantly is that FIRS has shown that it will be instrumental in any effort to address the country’s revenue challenge.
Mr. Dapo Okunbajo is a public affairs commentator and veteran journalist.
By Rinret Jennifer Mwarap
The unrelenting massacre of citizens in Plateau State has reached an alarming level. While the government claims to be taking steps to restore order, the reality on the ground tells a different story one that feels like nothing meaningful is being done.
It is heartbreaking to see our loved ones butchered without cause. The questions torment us: What have we done wrong? Who have we offended? Where did we go astray? Must we continue to endure this suffering for no justifiable reason?
The killing of innocent people in Plateau must come to an end. The government and security forces cannot afford to look away. Their responsibility is clear they must act swiftly and decisively to bring the perpetrators to justice, for the sake of the innocent victims and the children left behind.
I call on the Governor of Plateau State to rise to this challenge. Take bold and immediate action against those who seek to destroy our land and shed innocent blood. Let them face the full weight of the law.
This feels like a nightmare—how did we get to the point where the same Plateau where I once slept peacefully with both eyes closed is now a place where even sleeping with one eye open feels unsafe?
Where is the peace in our “Home of Peace and Tourism”?
When will our tears dry? When will justice prevail?
If we truly seek peace, then justice must be non-negotiable.
Ken Nnamani, a former president of the senate, says he did not beg Elisha Abbo, a former senator representing Adamawa north, on behalf of any judge after the ex-lawmaker lost his election case in court.
In October 2023, the court of appeal sacked Abbo and declared Amos Yohanna, candidate of the Peoples Democratic Party (PDP), as the winner of the Adamawa north senatorial election.
Appearing on Channels Television on Wednesday, Abbo said he was a victim of “miscarriage of justice”.
The former senator said Nnamani pleaded with him on behalf of a judge after he lost his election case in 2023.
Reacting in a statement, the former senate president described Abbo’s claim as “blatant lies”.
“My greatest surprise was to hear him state that Senator Ken Nnamani visited him to plead with him on behalf of a judge for the miscarriage of justice. This statement is a blatant lie. I do not know how Senator Abbo can boldly fabricate an event that never happened to buttress his allegation of judicial miscarriage against him,” he said.
“For the avoidance of doubt, I have never visited Senator Elisha Abbo at his house or anywhere. Up to this moment, I do not know where he lives. I have never discussed with him about his case, or any case pending or decided by any court of law in Nigeria.
“The only time I met with him was when he visited me in my house. It was more of a social visit by him. At this meeting, we never discussed his case or any case. I recall that when the matter of his political career came up, I advised him to avoid controversies as a young politician.
“The statements Senator Abbo made regarding me and his case are all fabrications. I believe I have had a sterling and distinguished public service career. I am determined to maintain my integrity and commitment to excellence till the end of my life.”
Heineken Lokpobiri, minister of state for petroleum resources, says the federal government plans to commence implementing the drill-or-drop provisions of the Petroleum Industry Act (PIA).
Section 94 of the PIA gives operators a period of three years to begin oil production or relinquish the assets to the federal government.
Speaking during the Cross Industry Group (CIG) meeting held on Tuesday in Florence, Italy, Lokpobiri said it is in the best interest of the country that all inactive wells go to work.
He said the federal government, under the leadership of President Bola Tinubu, has provided every necessary incentive to ensure international oil companies (IOCs) in Nigeria run smoothly and profitably.
“Now, it is imperative for these industry players to match the government’s efforts with increased investment by announcing final investment decisions (FIDs),” he said.
Furthermore, Lokpobiri discussed “the challenges, expectations, and measures to enhance the sector’s contributions towards domestic energy needs and regional expansion across Sub-Saharan Africa”.
He emphasised that while IOCs have highlighted engineering, procurement, and construction (EPC) contractors as a challenge, “EPCs will not come unless they see strong commitments from industry players”.
“The government has done its part to provide the requisite and investment-friendly fiscals, the ball is now in the court of the IOCs and other operators to make strategic investment decisions that will drive increased production and sustainability in the sector,” he said.
“We must also recognise that domestic crude supply is essential to national energy security. The best solution to this challenge lies in increasing production, which will ensure a balance between domestic supply obligations and external commitments.”
The minister further urged industry players to explore collaborative measures, such as shared resources for contiguous assets and the release of underutilised assets to operators ready to invest in production.