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The FIRS’s Tax Collection Revolution, By Salisu Na’inna Dambatta
It is akin to a revolution: welcome to the big paradigm shift in Nigeria’s tax collection. The shift is from consistently low, inadequate and below targeted tax collection to a record-setting collection of N10.1 trillion in 2022. And the trend of raking in more revenue to finance people-oriented projects continues.
Since his appointment as the Executive Chairman of the Federal Inland Revenue Service (FIRS) on 9th December, 2019, the country has witnessed and benefitted from his expertise in tax matters.
This is unsurprising given his professional and career pedigree. As immediate past Chairman of the African Tax Administrators Forum (ATAF), Mr. Nami led the birth of a consciousness in the continent that technology was the future of taxation. He has carried that philosophy and campaign to the Commonwealth Association of Tax Administrators (CATA), where he has been President since 2021.
The Bayero University Kano graduate, Nami is a trained and skillful Tax, Accounting and Management Professional with high qualifications and professional practicing licences from relevant professional bodies. He has been in the business of Auditing, Tax Management and Advisory Management Services to diverse clients in the Banking, Manufacturing, Services, Public Sector and Non-Profit Organisations for around three decades.
He has transformed the revenue collection for Nigeria by deploying his vast experience, deep knowledge and patriotism to bear on his role as Chairman of the FIRS and Joint Tax Board.
The improved tax collection in the country since his assumption of office as Chairman of the Federal Inland Revenue Service (FIRS) to date is evidenced in Tax Statistics/Report the institution has released from 2020 to date.Whereas the FIRS raked in N10.1 trillion in 2022, the highest ever so far; the same Service could only generate N3,741.7574 trillion out of a modest target total revenue of N4,572.2090 trillion in 2015. The total collection for 2015 at N3.714 trillion was the equivalent of slightly over one third of the 2022 collection.Three years later in 2018, the revenue target for the FIRS was N6,747.0344 trillion. However, that target proved ambitious as the Service was abled to generate only N5,320.8914 trillion that year.
The total revenue for 2018 was just above half of the N10.1 trillion generated by Muhammadu Mami and his team in 2022.While briefing the National Economic Council (NEC) recently, the top tax man attributed the high tax collection success in the first half year to three factors namely: improved voluntary tax compliance by taxpayers; the continued improvement of automation of tax administration processes, including the updated VAT filing processes; and strong engagement with stakeholders in both the formal and informal sectors of the economy.He assured the NEC that, “the performance in the second half of the year would be better considering the continuing improvement to our tax administration processes.”
It is heartwarming that the January to June 2023 tax collected in the sum of N5.5 trillion is more than the entire collection of N5.320 trillion in 2018. Also the N5.5 trillion was more than the target of N5.3 trillion set for the first six months of this year. And the FIRS joyfully celebrated it as the largest tax collected for any six months since tax collection started in Nigeria.
Muhammad Nami disclosed that the non-oil sector contributed more revenue than the oil sector, “Tax revenue collected from the oil sector from January to June 2023 stood at N1.73 trillion, as against a target of N2.3 trillion; while non-oil tax collection stood at N3.76 trillion, as against a target of N2.98 trillion.”It is important to remember that he was appointed Chairman FIRS in December 2019. In that year, the revenue target was N8,802.3860 trillion. But the total collection for that year was below six trillion: it was N5,261.9163 trillion.
There was a shortfall of over N3.5 trillion.In 2020 his first full year in office, FIRS collected N4.95 trillion a shade below the target of N5,076.8518, at 98 per cent performance. It was achieved amidst a recession, the COVID-19 worldwide economic shutdown, low oil revenue and the economic disruptions caused by the EndSARS protests.
The NBS affirmed that the FIRS collected N6.405 trillion in 2021. The target for that year was N6.401 trillion. It was a 101 per cent success story. But it was triumphantly dwarfed by the N10.1 trillion best-ever collection so far achieved in 2022.
Salisu Na’inna Dambatta wrote from Dambatta town.
Lere Olayinka, the Senior Special Assistant on New Media and Public Communications to Nyesom Wike, the former Governor of Rivers State and current Minister of the Federal Capital Territory (FCT), has responded to the recent appointment of Bashir Ojulari as the new Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd.).
Olayinka took to X (formerly Twitter) to address discussions surrounding this leadership transition. His post aimed to clarify that President Bola Ahmed Tinubu did not dismiss Mele Kyari, a northerner, to replace him with a southerner, as some speculated. Instead, Olayinka pointed out that Ojulari, like Kyari, hails from the northern region of Nigeria.
According to Olayinka’s post on his official X account, he emphasised that Bashir Ojulari is from Kwara State, located in North Central Nigeria. Additionally, the new Board Chairman, Ahmadu Musa Kida, originates from Borno State in the North East.
His post stated: “Bashir Ojulari, the new NNPCL CEO, is a northerner from Kwara State, North Central Nigeria. The new Board Chairman, Ahmadu Musa Kida, is also a northerner, from Borno State, North East Nigeria.”
Olayinka’s statement came in response to narratives suggesting that the appointment was politically motivated to favour one region over another.
By Israel Bulus, Kaduna
The Middle Belt Forum (MBF) has strongly condemned the extrajudicial killing of 16 travelers in Uromi, Edo State, while warning against retaliatory violence targeting Southerners in Northern Nigeria.
In a press statement released on Tuesday, MBF Spokesman Luka Binniyat denounced inflammatory threats from individuals claiming to represent Northern interests in response to the killings.
Recalled that the victims, were allegedly armed hunters, traveling from Port Harcourt to Kano when they were attacked by a mob that accused them of being kidnappers.
“The MBF strongly condemns the unlawful killing of any Nigerian citizen, including those who lost their lives in Uromi,” the statement read. “However, we categorically reject any attempt to use this tragic incident as a pretext to unleash violence against Southerners residing in Northern Nigeria.”
The forum assured that the Middle Belt would not become a battleground for reprisals, emphasizing that it remains a safe haven for all law-abiding Nigerians. It urged community leaders and youths to remain vigilant and prevent any attempts to instigate violence, calling for anyone with such intentions to be handed over to authorities.
The MBF also reaffirmed its commitment to justice for all victims of violence across Nigeria. The statement highlighted the ongoing security challenges facing Middle Belt communities, citing persistent attacks by armed herdsmen with little government intervention.
” We hope that the swift response to the Uromi killings would serve as a precedent for broader action against criminal elements terrorizing the region.
“Thousands of our people remain in captivity, and vast portions of our land are still under the control of violent outlaws—primarily Fulani militants,” the statement noted.
“Justice must be served across the board.”
The MBF concluded by reiterating its support for the ongoing investigation into the Uromi incident and calling for a fair and decisive crackdown on all forms of criminality across the country.
BY ANKELI EMMANUEL, Sokoto
The Deputy Speaker, Sokoto State House of Assembly, Kabir Ibrahim kware, has commended governor Ahmed Aliyu for executing numerous developmental projects without taking loan from any financial institution.
Ibrahim Kware whp gave the commendation when he led other members of the State Assembly on Sallah homage to governor Aliyu, added that, the governor is very prudent in managing resources to achieve results.
“There was never a time you approached us with a request for permission to borrow money from any financial institutions whether at home or abroad,”he affirmed.
This , according to him, is worthy of commendation considering the myriad people- oriented projects the governor is executing across the state.
Speaking on behalf of the State’s Judiciary, Sokoto State Chief Judge, Justice Muhammad Sa’idu Sifawa, commended the governor for the construction of additional Court rooms at the State High Court.
Justice Sifawa also expressed delight over the way and manner the governor responds to issues affecting the Judiciary, which he said, is a clear testimony of the good working relationship existing between the three arms of government in the state.
Responding to the commendations, governor Ahmed Aliyu appealed for more synergy among the three tiers of government in the overall development of the state.
A statement by Abubakar Bawa, the Press Secretary to governor Alhmed Aliyu reaffirmed his principal’s unwavering commitment of the executive arm to providing the direly needed dividends of democracy to the people of the state,in line with his campaign promises.
The governor also urged lawmakers to present all the needs of their constituencies for prompt and diligent implementation.
“”I want to assure you that my doors are always open for you at any given time, to listen to the demands of your people.”
He reminded them on the need to put politics aside and work together with the executive arm for the progress and even development of the people they represent.
Turning to the members of the State Judiciary, the governor appealed to Judges and Khadis to ensure the quick dispensation of justice, so as to decongest the correctional centres.
“It is worrisome to see how inmates are languishing in correctional centres for minor offences in the name of awaiting trial.
“We recently appointed seven additional Judges and 7 Khadis, which is the first in the history of Sokoto State.
“The idea is to enhance the manpower in our Judiciary so as to speed up the dispensation of justice,” he added.
The governor further assured the members of the Judiciary of his administration’s readiness to ensure their welfare at all times.