By Kadiri Abdulrahman

Some stakeholders have commended President Bola Tinubu for the recently inaugurated Presidential Committee on Fiscal Policy and Tax Reforms, chaired by Mr Taiwo Oyedele.

They made the commendation in separate interviews with the News Agency of Nigeria (NAN) 0n Friday in Abuja

Tinubu had on Monday inaugurated the committee comprises experts from both the private and public sectors and will be responsible for various aspects of tax law reforms, fiscal policy design and coordination, harmonization of taxes, and revenue administration.

An economist, Dr Tope Fasua, commended the president for taking steps to introduce needed changes in Nigeria’s tax reform.

He said that it was good for the government to optimise revenue generation to cut down on borrowings.

Fasua advised that every state should take concrete steps to improve revenue generation for the economy to grow sustainably.

He urged the private sector to always cooperate with the government in its revenue drive rather than antagonise such initiatives.

“The private sector kicks anytime government proposes a tax increase, no matter how insignificant. It has turned itself into an enemy of government,” he said.

According to him, the Nigerian government will also need to get its expenditure priorities right.

“We have a debt problem, we have a revenue problem and we have an expenditure problem.

“Although debt-to-GDP ratio is not high compared to other countries, Nigeria needs to start spending wisely and generating more revenues,” he said.

Dr Ayo Abina, the chairman of AACS, an international consulting and investment company, said rather than continued borrowing, Nigeria could generate enough to fund government’s expenditure.

“Nigeria can earn additional 53 billion dollars by raising the tax-to-GDP ratio to 15 per cent without raising taxes, and save four billion dollars by tackling oil theft”, he said in a publication.

The International Monetary Fund (IMF) had also waded in, urging the Federal Government to take steps to increase the country’s revenue base.

A research organisation, Pol Eco Analytics, commended the president for taking steps to introduce needed changes in Nigeria’s tax reform.

A statement by the senior researcher, Pol Eco Analytics, Mr Adefolarin Olamilekan, said the committee would find a lasting solution to the excesses of more than 62 government agencies.

Olamilekan said that it would also resolve confusion over MDAs’ mandates on tax remittance to government.

“This is a patriotic policy stand Nigerians must commend.

“This is a laudable move to tackle problems of disarticulated tax regime, and official negligence that worsened the case of tax evasion and non-compliance in Nigeria,” he said.

Ari Aisen, Resident Representative, IMF Nigeria Office, during a recent virtual forum on the Nigerian debt situation, advised the government to drastically reduce dependence on borrowing to fund expenditure.

According to Aisen, to resolve the debt issues of Nigeria, the country needs to concentrate on its revenue and expenditure.

He said that the debt situation had deteriorated because the Federal Government spent more than it was actually getting in revenues.

“How do you reduce the spending needs of the government? That should be the question.

“It is really about fiscal discipline. People should not permanently spend beyond what they generate in revenue because it becomes unsustainable,” he said.

Aisen said that the critical thing to do was for countries to rely more on their own revenue to finance their own expenditure.

“That is the autonomy and the independence that we would like to see our member countries rely on,” he said.

Vahyala Kwaga, an analyst at BudgIT, a Nigerian company that provides social advocacy using technology, urged Nigerians to also beam their searchlights on the state governors and their fiscal behaviour.

“The federal system allows the centre to provide monies for the states.

“The question is, how prudent are these monies expended when they are given to the states?

“The transparency and accountability problem we have in the use of funds is extremely problematic at the level of the states,” he said.

As the Federal government takes steps to boost the country’s revenue base through tax and other fiscal reforms, Nigerians expect that borrowing will soon cease to be a primary source of funding for the country’s budgets.

The News Agency of Nigeria (NAN) reports that Nigeria’s public debt stock as at Dec. 31, 2022 stood at N46.25 trillion equivalent to (103.11 billion dollars).

According to the Debt Management Office (DMO), the public debt stock of the country consists of the domestic and external debts of the Federal Government of Nigeria and the sub-national governments.

The DMO, which is the Federal Government’s agency established to coordinate the management of national debts also recognised the dire need for government to reduce its dependence on borrowing by generating more revenues.

Its Director-General, Patience Oniha told NAN that Nigeria had operated deficit budgets for many decades, which made borrowing from local and external sources imperative.

“The financing of the deficits through borrowing from local and external sources is the principal reason for the growth in debt stock and debt servicing.

“One way to reduce budget deficits is to grow revenues, the other way is to prioritise expenditure and cut waste and leakages.

“How much revenue is Nigeria generating? Statistics show that relative to other countries, Nigeria’s revenue generation is low.

“The World Bank Economic Outlook for 2020 showed that Nigeria, with a revenue-to-GDP ratio of 6.3 per cent, was ranked 194 out of 196 countries covered,’’ she said.

She said that a strong revenue base would reduce the need for relatively large amounts of new borrowing, and will also reduce the debt service to revenue ratio.

“Revenue generation is the way to go and that is how countries develop and use borrowing to augment revenue shortfalls now and again.

“Nigeria has been running budget deficits for decades, it is about time to shift to balanced budget and even budgets surplus,’’ she said.

According to her, among reasons for the increase in total public debt stock is new borrowing by the Federal Government and sub-national governments, primarily to finance budget deficits and execute projects.

“The issuance of promissory notes by the Federal Government to settle some liabilities also contributed to growth in the debt stock,” she said. (NAN) (www.nannews.ng)

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Edited by Ese E. Eniola Williams

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By Bolanle Lawal

Ekiti Government on Wednesday approved palliatives to cushion the effect of fuel subsidy removal.

Tagged “Ekiti State Subsidy Relief Programme’’, the government approved consequential adjustment of the minimum wage to civil servants on Grade level 14 to Grade Level 17.

It approved the payment of leave bonuses for 2017 and the implementation and payment of 2020 and 2021 promotion arrears to its civil servants.

The government also approved the payment of N5,000 monthly conditional cash transfer to 10,000 poor and most vulnerable households from August to December 2023.

The conditional transfer focuses on the aged; while another 10,000 residents and especially the aged would be considered for free medical attention under the Ekiti Health Insurance Scheme.

To cushion the effect of high cost of transportation especially on workers and students, government would provide free mass transit buses.

It would also distribute free foodstuffs to the poor and most vulnerable households.

Government also approved payment of 90 per cent of Consolidated Health Salary Structure and 100 per cent Hazard Allowance for local government health workers and salary parity for clinical staff of the Hospitals Management Board.

Commissioner for Finance and Economic Development, Mr Akintunde Oyebode, made these known at Ado-Ekiti on Wednesday at a news briefing.

He assured that increased revenue accruing to the state from the removal of fuel subsidy would lead to improved service delivery from the government.

“In addition to the already mentioned interventions, government will distribute inputs to farmers and give financial support to small businesses and to the informal sector,’’ Oyebode said.

Labour leaders at the news briefing took turns to appreciate government’s efforts at alleviating the hardship of the citizenry. (NAN)

Edited by Alli Hakeem

By Philip Yatai

The Federal Capital Territory Internal Revenue Service (FCT-IRS) has taken steps to correct errors in tax remittances by individuals and businesses in the capital city, Abuja.

The acting Executive Chairman, FCT-IRS, Mr Haruna Abdullahi, stated this at a workshop in Abuja on Tuesday.

The News Agency of Nigeria (NAN) reports that the workshop was on Integrated Payroll and Personnel Information System (IPPIS) and Government Integrated Financial Management Information System (GFMIS) platforms.

Abdullahi frowned at wrongful remittances of taxes meant for FCT-IRS to the Federal Inland Revenue Service (FIRS), and payment of personal income tax to other states of the federation.

He blamed the anomalies on inaccurate data entries on the platforms, which distorts financial records and deprives the rightful states of their due resources.

“We have discovered that on the IPPIS, most persons come with tax clearance not reflecting the Federal Capital Territory.

“It appears that some desk officers believe that the FCT-IRS is not present on the GIFMIS platform.

“As a result, they automatically remit the taxes due to the FCT-IRS to the Federal Inland Revenue Service.

“I would like to clarify that the FCT-IRS is indeed on the GIFMIS platform, and our code is 100419,” he said.

He called on individuals to file their taxes in the appropriate places and remit to the appropriate tax authority.

He also encouraged all desk officers to ensure that subsequent tax remittances for the FCT were accurately made to the FCT-IRS, not the FIRS.

According to him, the errors, if not corrected, will deny the rightful tax authority their genuine resources.

He, therefore, appealed to desk officers to be meticulous in their duties -double-check every data entered, every form filled, and every tax remittance made to ensure it goes to the right authority.

He said that the workshop was organised to correct the misallocations of past tax remittances.

“I would like to stress that the FCT-IRS exists to serve the people of the FCT, just as the FIRS exists to serve the entire nation.

“We are not competitors, but rather collaborators in the larger scheme of national development.

“To the FIRS, we say, let fairness and justice prevail. We believe in your institution’s dedication to just and fair practices.

“We request that you join us in this crucial endeavor to correct these past mistakes and ensure that the FCT-IRS receives what is rightfully due to it,”, he appealed.

Abdullahi also stressed the need for individuals and civil servants to pay their taxes to the appropriate authorities, adding that tax clearance must be taken more seriously by individuals.

He noted that FCT-IRS, as a revenue generating agency in the nation’s capital, Abuja, has a duty to enlighten the people on issues related to tax clearance, considering its importance.

In his remarks, Dr Kennedy Iwundu, Chairman, Chartered Institute of Taxation of Nigeria (CITN), FCT chapter, said that governments at all levels must comply with the provisions of tax laws to avoid lapses.

Iwundu explained that the tax law provides that business names should be administered by the state’s Internal Revenue Service, and in the case of Abuja, by the FCT-IRS.

He added that companies were to be administered by the Federal Internal Revenue Service (FIRS), representing the Federal Government.

“When MDAs are giving out contracts to companies, they are obligated to remit the revenue to FIRS.

“However, if the contract is in a business name, the withholding tax is to go to the FCT-IRS, where the business name is residence,” he said.

Iwundu stated that the mistake of wrong remittances caused challenges in the system and must not be allowed to continue. (NAN)

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Edited by Folasade Adeniran

By Ruth Oketunde

The Society of Women in Taxation (SWIT) FCT, Abuja Chapter, has called on Nigerians to embrace tax payment in order to support governments’ efforts in providing social services to the citizens.

Mrs Biola Saliu, Coordinator of the group, made the call during her investiture as the 4th Coordinator of the chapter, in Abuja.

The News Agency of Nigeria (NAN) reports that the event also featured the inauguation of a 16-member executive committee to serve its 2023/2024 year.

Saliu said that it was important for Nigerians to pay their taxes at at when due, in other to enjoy the infrastructure and developmental projects of the federal government.

“There are so many amenities that we don’t have, such as good roads, water, electricity and so on, but government does not manufacture money.

“They use what they get from us to build all these things, so by not paying your tax, you do not have the right to ask for these benefits.

“The amenities are important and if you know they are important to you, you need to pay your tax, so that you can be able to face the government and ask for these things.

“So it is important for everyone to ensure they pay their taxes at the right time,” she said.

On her area of focus during her tenure, she said the chapter would focus on capacity building for its members and ensure that young students are enlightened on the importance of tax payment.

“The Abuja Chapter has not really gotten its foot on the ground and that is the main thing I would be working on.

“I will be working on membership drive, though we have started, we are trusting and believing God we will achieve it this time.

“We will also train and improve the knowledge of members through seminars and workshop, so that it will enhance their performances,” she added.

Also speaking, Mrs Bosede Ikhanoba, SWIT National Chairperson, advised the new executives to be determined and ensure they reach their desired goals.

“Leadership requires vision, it requires the desire to serve others and it requires sacrifice.

“Some leaders are born with the ability to lead this way but most of us need support and guidance, I therefore urge you to provide purposeful leadership needed at the SWIT Abuja and embrace effective collaboration to help you reach your goals,” she said.

For her part, Mrs Adesola Adeyemi, Immediate Past Coordinator, SWIT Abuja Chapter, called on the new executives to work effectively and selflessly for the success of the society.

“I want them to look at professionalism, integrity, efficiency and ownership.

“They should be ready to see the chapter as their own, they should also be patient and they should ensure team work as this is important,” she said.

Mrs Taiwo Ojo, Chairman, Investiture Planning Committee, added that the society would continue to be a beacon of inspiration and empowerment for the women in the field of taxation.

She however, called on Nigerians to ensure they pay their taxes to ensure industrial development and growth of the country.

“It is important for us to pay tax so that our infrastructures can be okay, we can pay good salaries and our children will be able to go to school.

So it is important Nigerians embrace paying their taxes,”she said.

NAN reports that SWIT, formally inaugurated on May 7, 2010, is the female arm of the Chartered Institute of Taxation of Nigeria (CITN).(NAN)(www.nannews.ng)

Edited by Sadiya Hamza