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Tag: Federal Inland Revenue Service (FIRS)

  • Feature: The FIRS’ tax collection revolution

    Feature: The FIRS’ 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

  • Feature: FIRS milestone H1 2023 performance, a success foretold

    Feature: FIRS milestone H1 2023 performance, a success foretold

    by Dapo Okubanjo

    For any one who has paid more than a passing attention to the activities of the Federal Inland Revenue Service (FIRS) in the last four years, the agency’s tax collection receipt in the first six months of 2023 would certainly not be surprising.

    This is because the FIRS under the leadership of Muhammad Nami has been constant in scaling new heights.

    But even at that, a N5.5 trillion total tax revenue collection between January and June this year is not a mean feat especially as this was more than the N4.95trillion the FIRS collected in the entire 2020 fiscal year and about nine hundred billion naira less than the N6.4 trillion collected in all of 2021.

    It is the highest ever tax collection by the service for the first six months of a fiscal year. But undeterred, the tax agency is convinced that it would better that number in the last six months of 2023.

    In the words of the FIRS Executive Chairman on the day he made the record- breaking announcement at the meeting of National Economic Council (NEC) a few days ago, there are “better days ahead”. And this he attributed to “continuing improvement to our tax processes and positive impact of current government’s policies on the economy”.

    A breakdown of the 2023 half year tax collection figure shows that while non-oil taxes continued to do well with N3.76 trillion, oil taxes stood at N1.73 trillion.

    And listening to Muhammad Nami on the day, it would be difficult for anyone to bet against the agency exceeding that feat at the end of the fiscal year. This is because it collected a total of N1.65 trillion tax revenues in June 2023 alone, the highest tax receipt by the agency in a single month.

    Success Foretold

    A cursory look at FIRS trajectory since at least 2020 when the Muhammad Nami-led management assumed office shows that signs of a successful tax collection regime were there from the onset. This is inspite of the grim shadow of COVID-19 on the polity which was bound to have negative consequences on the economy.

    In the year the pandemic held the world in its grips, the agency’s tax receipt fell slightly short of its N5.07 trillion target when it raked in N4.95 trillion inspite of a global slump in crude oil prices and disruption to businesses.

    One could easily recall how the FIRS Executive Chairman explained that the global oil slump impacted negatively on tax returns through the Petroleum Profits Tax which accounted for only 30.6% of the tax revenue generated in 2020, compared to previous years.

    So the country had to rely more on non-oil taxes which rose astronomically as a result of the deployment of a tax reform built on a 4-pronged approach which includes: rebuilding FIRS’ institutional framework, improving collaboration with stakeholders, making the agency a customer-centric institution and finally to turn it into a data-centric institution.

    And with COVID-19 not fully a thing of the past, the tax reforms began to manifest in 2021 with increased stakeholder collaboration and the deployment of technology. It was the year of Tax Pro-Max so not surprisingly, FIRS overshoot its N6.401trillion target for that year.

    In a personally signed performance update for the 2021 fiscal year,the FIRS helmsman said the agency collected a total of N6.405 trillion in both oil (N2.008 trillion) and non-oil (N4.396 trillion) revenues as against a target of N6.401 trillion.

    A further breakdown shows that Companies Income Tax amounted to N1.896 trillion; Petroleum Profits Tax brought in N2 trillion; Value Added Tax raked in N2.07 trillion; Electronic Money Transfer Levy topped N114 billion while Earmarked Taxes recorded N208.8 billion; among others.

    What this meant was that the non-oil sector contributed 68.64% of the total collection in 2021, while the oil sector’s contribution was 31.36% of total collection.

    But in 2022, the oil sector did better as FIRS broke the N10 trillion mark by contributing 41% of the total tax collection for the fiscal year with an unprecedented figure of N4.09 trillion to N5.96 trillion from the non-oil sector according to the year’s performance update report.

    All of these can be attributed to a quantum leap in stakeholder engagements under the watch of the current FIRS leadership, an automated system with Tax Pro-Max as the guiding light for tax administration as well as training and retraining of FIRS staff to improve their capacity.

    So it is quite easy to trace the performance index of FIRS from 2020 and come to the conclusion that its 2023 half year collection of N5.5 trillion was not entirely surprising.

    It is indeed a story of success foretold right from inception, not only because of the ongoing tax reforms but also because of improved stakeholder collaboration. And indications are that things can only get better.

    Dapo Okubanjo is a journalist/public affairs analyst based in Abuja. He can be reached on dokubanjo@yahoo.co.uk

  • FIRS Rakes-in Record N5.5 Trillion In Six Months

    FIRS Rakes-in Record N5.5 Trillion In Six Months

    The Federal Inland Revenue Service (FIRS) has announced a total tax revenue collection of N5.5 trillion for the half-year period of January to June 2023. This is the highest tax revenue collection ever recorded by the Service in any first six months of a fiscal year.

    Mr. Muhammad Nami, Executive Chairman of the FIRS stated this while presenting the 2023-2024 tax revenue outlook to the National Economic Council at its meeting held on Thursday 20th July 2023, at the Presidential Villa, Abuja.

    The presentation, which contained FIRS’ 2023 Half-Year Collection Report, showed that the FIRS achieved over one hundred per cent of its target for the first half of the year compared with a mid-year target of N5.3 trillion.

    According to the report, tax revenue collected from the oil sector from January to June 2023, stood at N2.03 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.

    Mr. Nami, in his presentation, further stated that the Service collected a total of N1.65 trillion in tax revenues in June 2023. This sum is the highest tax revenue collected by the Service in any single month.

    Speaking to what he described as “a good head start, despite stubborn headwinds,” Mr. Muhammad Nami, attributed the excellent performance to improved voluntary tax compliance enabled by the automation of FIRS’ tax administrative processes.

    “This is a good head start as we work towards meeting our target for the year. And it was achieved despite stubborn headwinds such as the impact of the currency redesign and 2023 General Elections on the economy in the first and second quarters of 2023”, said Mr Nami.

    “This half-year performance was achieved as a result of improved voluntary tax compliance by taxpayers, the continued improvement of automation of our tax administration processes, including the updated VAT filing processes; as well as our dogged engagement with stakeholders in both the formal and informal sectors of the economy.”, he concluded.

    Commenting on the outlook for the remainder half of the year, the FIRS Executive Chairman gave assurances that the country should expect “better days ahead” in terms of tax revenue collection.

    “We believe that the performance in the second half of the year would be better considering the continuing improvement to our tax administration processes and the positive impact of the current government’s policies on the economy,” said the Executive Chairman.

    It would be recalled that the Service achieved a total collection of N10.1 trillion in the year 2022, being the highest tax collection ever made by the FIRS in a single year.

  • FIRS Extends Due Date For Filing 2023 Companies Income Tax Returns

    FIRS Extends Due Date For Filing 2023 Companies Income Tax Returns

    Companies that were unable to file their Companies Income Tax returns for the 2023 year of assessment (YOA) that fell due on the 30th of June 2023 have been given up to 31st August, 2023 to submit their returns to the Federal Inland Revenue Service (FIRS).

    The FIRS in a Public Notice signed by its Executive Chairman, Mr. Muhammad Nami, and issued today stated that it had received numerous calls from companies requesting for the extension of time to submit their Companies Income Tax (CIT) returns as they were unable to meet up with the deadline due on 30th June 2023.

    It noted that as a measure of goodwill and in line with relevant provisions of the Companies Income Tax Act, “all companies whose CIT returns for 2023 year of assessment that fall due between 30th June and 31st August, 2023 (both days inclusive) are given up to 31st August 2023 to submit the returns to the Service.”

    The FIRS noted that the relevant Companies Income Tax returns will not attract late filing penalties or interests if payments were made on or before 31st August 2023, noting further that where companies fail to file by the extended date, the penalty and interest for late payment will be computed from the original due date.

    “The relevant CIT returns shall, therefore, not attract Late Filing Penalty or interest for late payment if submitted to the Service on or before 31st August 2023.

    “Where relevant CIT returns are not filed by the extended date, penalty and interest for late payment shall be computed from the original due date and not the extended date.”

    The Service also stated that the extension of the filing date is only for Companies Income Tax and does not include returns for withholding tax, value added tax, personal income tax (PAYE), among others.

    “The Service invites all relevant taxpayers to take the opportunity afforded by this extension to submit their CIT returns within the specified time, pay the taxes due and avoid payment of penalty and interest,” the notice read

  • Feature- Muhammad Nami: Double honour for the nation’s tax czar

    Feature- Muhammad Nami: Double honour for the nation’s tax czar

    By Nkem Precious Esq

    The aphorism that there is no hiding place for the golden fish was practically manifested last week when the Executive Chairman of Federal Inland Revenue Service (FIRS), Muhammad Mamman Nami deservedly bagged double awards from reputable organisations. The nation’s number one tax collector at separate events was named winner of the Institute of Chartered Accountants of Nigeria (ICAN) Merit Award and the winner of the BusinessDay Excellence in Public Service Award.

    Since his assumption of office as the Executive Chairman of the FIRS in 2019, Mr Muhammad Nami has been going about his duty with uncommon zest, focus and vigour. Within the relatively little years of his stewardship as the helmsman of the nation’s biggest tax agency, he has raised the bar of leadership at FIRS by posting many remarkable strides in office.

    The FIRS Executive Chairman’s latest meritorious garland was bestowed on him at the 2023 annual awards of ICAN which took place at the Monarch Event Centre, Lagos, on Saturday 6 May, 2023. Muhammad Nami who was honoured in the non-members category at the event, was described by the President of ICAN, Mr Tijani Musa Isa, as a self-effacing and humble achiever who has steered the FIRS to excel in the national and international tax circle despite global economic downturns.

    While eulogising the nation’s number one tax chief for achieving several milestones in revenue collection, the ICAN President said the Merit Award is in recognition of Muhammad Nami’s positive impact in the society stressing that he has made significant contribution to the institute and to Nigeria. “The governing board deemed it fit to acknowledge the role you (Nami) have played and your outstanding achievements,” Isa emphasised.

    Muhammad Nami’s virtues as a leader imbued with exemplary and rare professional moral fibre were further captured in the citation read at the ICAN event, in which he was aptly described as “a go-getter and an ingenious leader.”

    The impactful reforms which he is implementing at FIRS did not escape the attention of the Institute as they were acknowledged as eloquent attestations to his dexterity, visionary leadership and patriotism. The citation took cognitive note of the fact that under his visionary leadership, the FIRS in 2022 achieved an unprecedented revenue collection of N10.1 trillion, the highest tax collection ever made in the annals of the country.

    At a similar event two days earlier in the same week, the FIRS boss was named the winner of the BusinessDay Excellence in Public Service Award 2022. The event took place on Thursday 4 May, 2023 at the BusinessDay States Competitiveness and Good Governance Awards.

    BusinessDay Newspaper explained that it named him the winner of the award for his “visionary and leadership qualities [that] have brought tremendous change to the FIRS.”

    It underscored Muhammad Nami’s landmark achievements by transforming the tax administration and compliance landscape in Nigeria. Prominent on the checklist of his strides in the transformative aspect is the introduction of the revolutionary TaxPro Max which is FIRS’ home-grown digital platform for tax administration. The hugely successful digital platform allows taxpayers to register, file returns and pay their taxes easily from any location other than their respective tax offices. TaxPro Max has proved an effective antidote of the delays and frustrations usually associated with the labyrinthine wholly manual process of the past that often lent itself to leakages, delays and frustrations.

    BusinessDay commended Muhammad Nami for repositioning the operations and staff of the FIRS, as well as introducing technological tools to institute more transparency, accountability, and effectiveness, which in turn has translated into increased capacity to deliver on the mandate with outstanding results.

    The Executive Chairman’s response after receiving the ICAN Merit Award captured his professional trajectory from a humble beginning through the rungs to the higher rungs of professional excellence. He summed his professional odyssey this way: ”Since I left the university, over 32 years ago, I have had the privilege and luck to be directly and indirectly associated with ICAN members: from the PKF, to Manam Professional Services, and now I am working directly with well over 3,000 members of this Institute as the Executive Chairman of the FIRS.”

    He went on to dedicate the award to his alma maters (from primary to tertiary levels), his former colleagues at the Presidential Committee on Audit of Stolen Recovered Stolen Assets, members of the Tax Advisory Committee of the FIRS, all taxpayers, FIRS board members, management and staff of the FIRS plus his family members.

    A rundown of Muhammad Nami’s rich profile reveals a man who is properly trained and horned in the fields of tax, accounting and management. He is a thoroughbred professional with highly rated qualifications and practicing licenses from relevant professional bodies.

    An accountant, management professional, tax administrator and public officer, Muhammad Nami has more than three decades of practical working experience in auditing, tax management and advisory as well as management services to clients in the banking, manufacturing services and public sectors in addition to non- profit organisations.

    He is an expert in rendering advisory support services to investors in respect of new businesses. He has also continuously rendered outsourced services to clients in both trading, service and manufacturing sectors of the nation’s economy.

    A fellow of Chartered Institute of Taxation of Nigeria and the Association of National Accountants of Nigeria, the FIRS boss is also an Associate Member of the Nigerian Institute of Management (Chartered) and Chartered Institute of Stockbrokers (CIS) as well as a graduate member of the Institute of Chartered Accountants of Nigeria (ICAN).

    Like the great oak that grew from little acorns, Muhammad Nami started his career with PKF in 1993 and became a senior consultant in charge of tax management and advisory services. From October, 2018 to December, 2019, he also served as the Managing Consultant of Manam Professional Services, a Chartered Tax Practitioners and Advisers firm that had offices in Kaduna, Abuja and Minna.

    He is the current President of the Commonwealth Association of Tax Administrators (CATA). He is the Chairman of the Joint Tax Board (JTB), a statutory position he holds as the Executive Chairman of the FIRS. He is the immediate past Chairman of the African Tax Administrators Forum (ATAF). These roles have invariably conferred on him the need to contribute to the growth and development of Nigeria, Africa and the commonwealth nations.

    As a proactive and innovative leader, he has since proved bookmakers right that he is more than equal to the task. The reforms he is implementing at FIRS attest to his dexterity, visionary leadership and patriotism. Under his visionary leadership, the FIRS in 2022 achieved an unprecedented revenue collection of N10.1 trillion, which is the highest tax collection ever made in the history of the country.

    Recently, he earned accolades for audacious deployment of technology as well as the introduction of unprecedented reforms in Nigeria’s tax administration including data mining and strategic intelligence gathering for improved revenue generation.

    His sterling leadership and impressive scorecard have earned him and the FIRS several other awards. For instance, in October 2022, President Muhammadu Buhari conferred on him the Excellence in Public Service Award for Fiscal reforms at the FIRS while he also received the Leadership Newspaper Public Servant of the Year Award for 2022.

    Muhammad Nami’s exemplary leadership style has greatly helped to galvanise and motivate the management and entire workforce of the FIRS to be disciplined and amenable to basic etiquette of the Service.

    The fact that he is a man driven by ideas and positive results is attested to by the regular on-the-job trainings and brainstorming sessions he organises at the FIRS. He is a modern-era leader that is never weary of updating and introducing result-yielding innovative ideas and techniques.

    Among other contributory factors to the astounding success of Muhammad Nami at the FIRS are his humble and honest attributes. Beneath the veneer of his gentle mien is the steely quality of a leader who does not compromise integrity and value in the discharge of duty. Certainly, the FIRS under the clear-headed, confident and chivalrous leadership of Muhammad Nami is primed for more plumage of honours and awards in future.

    • Nkem Precious is an Abuja-based lawyer
  • Nami, FIRS Boss, Wins ICAN Merit Award

    Nami, FIRS Boss, Wins ICAN Merit Award

    …also bags BusinessDay Newspaper Excellence in Public Service Award 2022

    The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami has been named winner of the Institute of Chartered Accountants of Nigeria (ICAN) Merit Award 2023 in its Non-Members Category at the Institute’s 2023 Annual Dinner Awards.

    Mr. Nami, who received the Award at the Monarch Event Centre, Lagos, yesterday was described by the President of the Association, Mallam Tijani Musa Isa as an unassuming and humble achiever who has led the FIRS to excel in the international tax circle despite global economic challenges by achieving milestones in revenue collection.

    “This Award is in recognition for your positive impact in the society. You have made a significant contribution to the institute and to Nigeria. The governing board deemed it fit to acknowledge the role you have played and your outstanding achievements,” Mal. Isa noted.

    In his Citation, Mr. Muhammad Nami was described as “a go-getter and an ingenious leader.” It further stated that “the reforms he is implementing at FIRS attest to his dexterity, visionary leadership and patriotism. Under his visionary leadership, the FIRS in 2022 achieved an unprecedented revenue collection of N10.1 trillion, the highest tax collection ever made in the country’s history.”

    While receiving the award, the Executive Chairman FIRS appreciated the Council Members of the Institute, saying that he has been lucky to work with their members throughout his 32-year career.

    “Since I left the university, over 32 years ago, I have had the privilege and luck to be directly and indirectly associated with ICAN members: from the PKF, to Manam Professional Services, and now I am working directly with well over 3,000 members of this Institute as the Executive Chairman of the FIRS.

    “I feel blessed by this honour and privilege. I am grateful to God, and to all of you who have found me worthy of this recognition. I pray God rewards all of you enormously,” he noted.

    Mr. Nami dedicated the award to his alma mater from primary to tertiary levels; his former colleagues at the Presidential Committee on Audit of Stolen Recovered Stolen Assets; members of the Tax Advisory Committee of the FIRS; all taxpayers; the Board Members, Management and staff of the FIRS, and his family members.

    In a similar recognition earlier in the week, on Thursday, 4th May, 2023, the FIRS boss was named the winner of the BusinessDay Excellence in Public Service Award 2022, at the BusinessDay States Competitiveness And Good Governance Awards 2022.

    The country’s influential business newspaper explained that it named him the winner of the award for his “visionary and leadership qualities [that] has brought tremendous change to the FIRS.”

    It further noted that: “Under your leadership, you transformed the tax administration and compliance landscape in Nigeria. You deployed the revolutionary TaxPro Max: FIRS’ homegrown digital platform for tax administration which allows taxpayers to register, file returns and pay their taxes easily from any location other than their respective tax offices.

    “You have repositioned the operations and staff of the FIRS, and introduced technological tools to institute more transparency, accountability, and effectiveness, which in turn has translated into the increased capacity to deliver on the mandate with results.”

  • Feature: Why Nigerians Should Embrace Paying Taxes

    Feature: Why Nigerians Should Embrace Paying Taxes

    by Chukwudi Enekwechi, JP

    In ancient and modern societies, paying taxes has remained a means through which citizens reciprocate the government’s social services to them. Of course, governments all over the world exist to render services to the people by providing social services such as infrastructure and other developmental projects for the use of citizens, but at the same time it behooves the citizens to reciprocate by paying their taxes as at when due.

    In fact, one of the requirements for a citizen to aspire for a public office in Nigeria and indeed in other climes is to show a proof of being a responsible citizen by paying his or her taxes, and failure to adhere to this rule will deny the citizen the right to aspire to a public office. I recall that in the second republic, the late nationalist and First Republic President, Rt. Hon. Dr. Nnamdi Azikiwe was dragged to court by his political opponents because he failed to pay his taxes. However, after the court adjudicated on the matter it was discovered that Dr. Azikiwe, as a responsible citizen, had paid his taxes as at when due, and he proceeded to contest for the coveted office of the President.

    This is one historical example of how important it is to pay taxes. Furthermore, when citizens pay their taxes government will be in a position to discharge its responsibilities to the citizens adequately. Such responsibilities include the provision of social amenities like hospitals, roads and bridges, water, healthcare, sanitation, schools, care for the aged and vulnerable groups, and markets among others.

    It is in this regard that the Nigerian apex tax organisation—Federal Inland Revenue Service (FIRS) under its Executive Chairman, Muhammad Nami has been applauded both within and outside Nigeria for its innovative steps towards increasing Nigeria’s revenue profile with its aggressive drive for payment of taxes by the citizens.

    It is remarkable that since Muhammad Nami assumed office he has introduced several measures that have seen the Federal Inland Revenue Service is in the lead for the federal government’s source of revenue for development apart from the oil sector.

    In most developed countries tax evasion is considered a very serious crime and can lead to severe repercussions against any offender, his or her status in the society notwithstanding.

    In light of the above Nigerians are enjoined to embrace the culture of paying taxes as it is a demonstration of one’s faith in his country, as well as an obligation on the part of every citizen and corporate organisation.

    There are different types of taxes ranging from personal income tax, company income, tertiary education tax etc. There is no gainsaying the fact that a social contract is not only binding on the government but also the citizens. While the government is discharging its own responsibilities, the citizens on their part are obligated to reciprocate by paying their taxes promptly.

    Gladly this is playing out well under President Muhammadu Buhari’s administration where the increase in tax revenues has translated into the provision of numerous social amenities that are impacting on the citizens positively.

    The impact can be felt in the construction of roads, bridges, railway lines, funding of Nigeria’s tertiary institutions, building of water dams and power plants across the country among many others. Obviously all these life-changing social services would not have been possible if the Federal Inland Revenue Service did not live up to its constitutional responsibility.

    Chukwudi Enekwechi, JP can be reached via kechis19@yahoo.com

  • Feature: Tax is the key to Nigeria’s Economic and Infrastructural Development

    Feature: Tax is the key to Nigeria’s Economic and Infrastructural Development

    by Musa Ilallah

    To begin this discussion, we must attempt to understand what taxes are all about.

    Taxation is defined as the imposition of compulsory levies on individuals or entities by governments worldwide. Taxation is used primarily to raise revenue to finance government expenditures. 

    The Nigerian government is primarily reliant on taxes as they are a significant source of revenue and a major source of income to the government to discharge its responsibilities.

    No one doubts the fact that the country today falls short of infrastructural development despite the unprecedented turn around on revenue generation and collection courtesy of the country’s Federal Inland Revenue Service, FIRS, under the leadership of its Executive Chairman, Muhammad Nami.

    The FIRS in Nigeria is the agency of the Federal Government Agency statutorily charged with the responsibility and powers to assess, collect, account and enforce payment of taxes accruable to the Government of the Federation. 

    Taxation is commonly said to be a contribution individuals and corporate entities make towards national development. Many see this as their obligation under the social contract where they contribute to enabling government to provide social amenities, welfare services and infrastructural development among others.

    It is not in doubt that the FIRS  has been up and doing in significantly and substantially improving revenue generation and collection in the country in the last few years. In return, the country’s infrastructural development has steadily improved across the length and breadth of the country.

    Since Government cannot provide these resources if citizens do not reciprocate by paying their taxes when due as an obligation, citizens must assist the government in providing it with resources to fund the development of the country.

    Visible and noticeable key projects the government has executed with taxes across education, roads, health, power, agriculture,  and other key sectors have dotted the country. Examples abound in the construction of the Loko-Oweto Bridge; the Second Niger Bridge, construction and equipping of Primary Health Care Centres, building and equipping schools with the necessary infrastructure among many others.

    Records show that TETFUND has disbursed over N2 trillion financed through the 2.5% education tax from the assessable profit of companies operating in Nigeria.

    The government needs taxes as sustainable sources of funding social programmes like health, education, infrastructure and other services which are important to achieve the common goal of a prosperous, functional and orderly society and most importantly to foster the country’s economic growth and development. 

    One can confidently say that governments raise revenues to pay for public goods and services. The commitment of the FIRS leadership in pursuing taxes generation and collection is very encouraging. 

    Undoubtedly, taxes are key to Nigeria’s survival, economic and infrastructural development and FIRS is at the centre of it, while doing the country proud.

    Musa Ilallah can be reached via musahk123@yahoo.com

  • Feature- Taxation: A two-way social contract

    Feature- Taxation: A two-way social contract

    by Dapo Okubanjo

    It is the norm in every society, for the authorities and the people to have what is loosely referred to as a social contract or an implicit agreement.

    It is a theory that is as old as humanity itself and it presupposes that a people’s moral and political obligation depends on an agreement among them.

    Taxation is seen as one of those obligations that the citizenry in every country is expected to abide by, but in Nigeria this is one social contract that has for years been difficult to keep.

    We are a country with the largest economy in Africa in terms of Gross Domestic Product (GDP) and at the last count, the size of Nigeria’s economy is way ahead of South Africa and even Egypt.

    But in terms of GDP to tax revenue, the country is not among the performing countries of the world and does not even compare with the two African countries mentioned above. In fact, the International Monetary Fund (IMF) has been concerned to the extent that it recently urged Nigeria to improve on its tax revenue which stood at 6% of its GDP as at 2022.

    That has been the highest the country has done in recent years but the Federal Inland Revenue Service (FIRS) on the watch of Muhammad Nami, the Executive Chairman, said it plans to raise the tax revenue to GDP ratio to 17% this year.

    On paper, this looks ambitious but the FIRS has in the last few years consistently surpassed old records and broken new grounds, so it may not be ideal to bet against the FIRS achieving a quantum increase in the country’s tax revenue.

    Chicken or egg dilemma

    Paying tax is a chicken and egg situation in many parts of Nigeria. It is usual to hear arguments among Nigerians revolving around inadequate infrastructure or outright lack of it in their immediate communities.

    But the truth is funds need to be in public coffers before these things could be done so the question of what comes first between citizens paying the necessary taxes as at when due or government putting up infrastructure and providing social amenities does not even arise.

    An aspect of the argument that vexed citizens make against payment of taxes is that not much is visible in terms of social amenities and infrastructure after citizens have done their side of the social contract.

    This may be true considering the President Muhammadu Buhari administration had in the past raised posers on what previous administrations had done with public funds based on what it met on ground.

    But this is not enough to kick against tax payment especially at a time of dwindling revenue from crude oil. It is ideal for the chicken to be well fed before it could lay eggs.

    And to put the issue in proper perspective, it is at a time of a global oil slump that the Buhari administration has been able to depend on other revenue sources and chief amongst these is tax revenue, to deliver so much.

    It is through these taxes that government is able to fund road construction, bridges including but not limited to the Loko – Oweto Bridge and Second Niger Bridge, provide medical care (Primary Health Care Centres across the country), build schools and equip them with the necessary infrastructure.

    It is pertinent to me to also note that the interventionist fund, TETFUND was able to disburse over N2 trillion in about 10 years to several tertiary institutions and this was made possible from the Tertiary Education Tax, which is 2.5% of the assessable profit of companies operating in Nigeria,

    When the FIRS made its record-breaking tax collection of N10.1 trillion in 2022, it attributed the feat to its internal revamp, its data-centric reforms, and its improved collaboration with all stakeholders including taxpayers—emphasising that it recognizes the role that the citizenry plays in achieving its set goal.

    And now that the agency has raised the bar in tax collection, the good job that the President Buhari administration is doing in ensuring that Nigerians see where their tax is going would be a further boost to FIRS target for 2023.

    So it is absolutely necessary that Nigerians continue to keep their side of the social contract which taxation represents and government, whether the incumbent or the incoming, will have little or no reason to ensure that the people reap the necessary benefits in terms of provision of social amenities.

  • At United Nations ECOSOC, Nigeria Renews Call For Fair International Tax Practices

    At United Nations ECOSOC, Nigeria Renews Call For Fair International Tax Practices

    Nigeria has, again, called on the United Nations and the International Tax Community to forge an inclusive, equitable, fair and universally beneficial international tax system towards the attainment of the 2030 Sustainable Development Goals (SDGs).

    Making the call on behalf of the country, Mr. Muhammad Nami, the Executive Chairman of the Federal Inland Revenue Service (FIRS) stated this while delivering Nigeria’s Statement at the Economic and Social Council (ECOSOC) Special Meeting on International Cooperation in Tax Matters, held on Friday, at the ECOSOC Chamber, United Nations Headquarters, New York.

    Mr. Nami noted that the Nigerian delegation is concerned about the global minimum tax as put forward by the OECD – Inclusive Framework, because of its low rate and the way it was negotiated to benefit the home countries of multinationals.

    “My delegation is concerned about the global minimum tax,” Mr. Nami noted, “because of its low rate and the way it was negotiated to benefit the home countries of multinationals, which are mostly in developed countries.”

    Speaking further, the head of Nigeria’s apex tax authority urged the meeting to discuss how “a UN instrument on tax cooperation can both build on work that has already been done in a way that guarantees fairness and equity.”

    He also said that Nigeria looks forward to views on “enforcement mechanisms for a binding multilateral tax convention, noting the challenges that developing and developed countries have experienced with investment treaty arbitration.”

    Mr. Muhammad Nami, in the country’s statement pointed out that the capacity of countries to attain the 2030 Sustainable Development Goals were hinged on having the requisite funding “in delivering critical public services” towards these SDGs.

    Nigeria, while calling for a global taxation regime under the United Nations, harped on the importance of enhancing domestic resource mobilization among member States to address their economic challenges.

    “The promotion of inclusive International Tax Cooperation remains a critical subject in attaining the 2030 Sustainable Development Goals (SDGs).

    “Today a global taxation regime under the UN is urgently needed to enable States effectively mobilize domestic revenues to address the multiple economic and other crises impacting our efforts in the achievement of the 2030 SDGs.

    “Domestic public resource mobilization is critical to this effort because of its vital role in delivering critical public services and advancing even progress towards the sustainable development agenda.

    “Developing countries are taking seriously the challenge of financing sustainable development. My delegation underscores the importance of enhancing domestic resource mobilization, good governance and investment in our common African goal embodied in the Agenda 2063, and in the global goals spelled out in the 2030 Agenda,” Mr. Nami stated.

    He further commended African countries for strengthening their participation in international tax cooperation efforts, as well as the strides they have made “in closing loopholes and countering base erosion and profit shifting.”

    He however expressed concerns that “while much good work has been done, much more remains to be made towards a fully inclusive process, both domestically and internationally and ensuring that all taxpayers are making their fair contributions.”

    The United Nations Economic and Social Council (UN ECOSOC) Special Meeting on International Cooperation in Tax Matters is an annual meeting of ECOSOC members, senior representatives of national tax authorities, relevant international organizations, civil society and academia that discusses issues of taxation as it affects the globe. Members, during this meeting, deliver action-oriented exchanges and design best-practices on international tax issues.

    This year’s meeting provided a forum for member states, members of the UN Tax Committee, international organizations and other stakeholders to discuss on the promotion of inclusive and effective international tax cooperation at the United Nations.

  • “Nigeria College of Taxation and Fiscal Studies” Bill Passes Second Reading

    “Nigeria College of Taxation and Fiscal Studies” Bill Passes Second Reading

    A bill for an Act to establish the Nigeria College of Taxation and Fiscal Studies passed its Second Reading last week at the Senate.

    The presentation of the Bill was made by Senator Abdullahi Aliyu Sabi CON on the floor of the Senate Tuesday last week, where he noted that the institution, if established would provide professional and academic training as well as certification for tax administrators, tax practitioners and tax professionals across the country.

    In his presentation, Senator Sabi, who represents Niger North Senatorial District of Niger State stated that the College had become necessary given the important role that taxation is playing in the nation’s economy, and that this institution would help formulate and draft tax policy for the country while addressing human capital gaps in the country’s tax industry.

    “It is becoming increasingly clear that diversifying the sources of government revenue to focus on sustainable sources is inevitable. This diversification puts taxation at the centre of the revenue mobilization discussion; the attainment of this laudable objective would require tax experts who have been properly and adequately schooled to formulate tax policy, draft and interpret tax legislation, carry on private tax practice, and administer taxation in the modern era.

    “In view of the constant shift in the social, technological and business environment, with direct impact on the tax system, it is is important to have skills, competence, and adaptable personnel to man the tax system. There must be a conscious development of the field of taxation and fiscal policies in Nigeria to awake the society on the importance of taxation as a sine qua non to our development.

    “Nigeria must go beyond the mere inclusion of taxation in the curriculum of educational institutions; instead the country must establish a modern system that facilitates the study of taxation via a well laid out academic curriculum, guided and focused by practical realities of Nigerian taxation and the revenue ecosystem,” he noted.

    Senator Sabi further emphasised that the College would help in tackling the issue of lack of sufficient capacity of tax officers, which he noted has led to “the delegation of powers of revenue authorities to third parties, creating complications, multiplicity and uncertainty in the tax system,” and that it would correct “aggressive and orthodox methods for tax collection” while also carrying out a “regular review of obsolete tax laws that do not reflect modern realities.”

    He noted that all these would help the country address its fiscal and revenue challenges and achieve the objectives of the National Tax Policy.

    In his presentation, the distinguished Senator representing Niger North also cited that countries such as Kenya, Japan, India, Australia, Austria, Singapore, and Malaysia have established similar institutions for developing capacity in taxation, excise duty and customs and fiscal matters, and that this has impacted positively on their economy through significantly high tax-to-GDP ratios.

    This College is expected to provide training for tax officials, including officers of the Federal Inland Revenue Service (FIRS), Nigeria Customs, sub-national revenue authorities, and even the general public. It is to consist of a main campus and 12 regional centres.

    The Bill proposes that the College would be funded chiefly by the extant yearly subvention of the FIRS for training thus requiring no direct impact on government spending.

    Senator Adamu Aliero representing Kebbi Central District, Kebbi State, commenting on the Bill noted that the only sustainable source of revenue for the Federation was taxation, and that the proposed College would train tax officials who would be instrumental to widening the country’s tax net.

    He also added that there is currently no institution in Nigeria that offers specialised training in taxation.

  • Tax Harmonisation: FIRS Signs MoU with LIRS for Joint Tax Operations and Audit

    Tax Harmonisation: FIRS Signs MoU with LIRS for Joint Tax Operations and Audit

    The Federal Inland Revenue Service (FIRS) yesterday signed a Memorandum of Understanding (MoU) with the Lagos Internal Revenue Service (LIRS) where the two tax authorities would collaborate on joint tax audit, investigation and automatic exchange of information.
     
    The MoU signing ceremony which took place at the State House, Marina, Lagos State, was executed by the Executive Chairman, FIRS, Mr. Muhammad Nami, and the Executive Chairman, LIRS, Mr. Ayodele Subair, and was witnessed by the Honorable Minister of State, Budget and National Planning, Prince Clem Agba as well as the Lagos State Governor, Mr. Babajide Sanwo-Olu.
     
    The MoU which establishes a joint FIRS, LIRS Audit and Investigation team obliges the two tax authorities to share relevant information that would assist both parties in their tax administration and enforcement roles, while also providing for capacity building between both authorities. 
     
    Speaking during the ceremony, the FIRS Executive Chairman noted that the cooperation would enable the two authorities to work as a team to achieve these objectives.
     
    “We will carry out joint audit and investigation as a team; we will also conduct automatic exchange of information for gathering data for the purpose of tax administration. With that information, we would be able to carry out tax administration seamlessly.
     
    “In addition to that, what we are going to introduce administratively because of our joint operation, is to ensure that we are able to implement presumptive tax regime as far as issues of tax administration is concerned.
     
    “But that is going to happen after we are done with the regulation we are putting together with the Ministry of Finance, Budget and National Planning, which the Honourable Minister of Finance would issue in due course.
     
    “The presumptive tax would be for the purpose of Personal Income Tax and also Ground Rent administration in Lagos State.
     
    “Another key issue I want to emphasize is capacity building. There are certain things we know as FIRS and would like to share with the State Inland Revenue Service. And there are also areas of specialization you have that we expect you to share with us through capacity building.
     
    “The major objective of this collaboration is to raise enough funds for Lagos State government and the Federal Government to be able to fund their budgetary requirements,” the FIRS boss stated.
     
    In his message to the people of Lagos, Mr. Nami stated that “civilisation globally does not happen by accident,” but that “people or citizens of various jurisdictions, states and countries globally make it happen through the taxes they pay.”
     
    Mr. Nami explained that without funds received by the government through taxes, governments all over the globe would not be able to provide critical infrastructures such as roads, hospitals, internationally rated airports, schools and be able to cater for security and safety of their citizens.
     
    He stated that “with this collaboration, we are confident that Lagos State would earn more revenue from taxes, and be able to deliver to Lagosians a 4th Mainland Bridge, a Lekki International Airport — which it has already conceived — and other critical infrastructure.“I appeal to the Lagos State Government to continue to give Lagosians—particularly taxpaying residents—value for the taxes they pay.”
     
    The Lagos State Governor, Mr. Babjide Sanwo-Olu in his remarks stated that this collaboration commenced over a year ago with the intention to improve the fiscal space of the country.
     
    He noted that the country’s tax to GDP ratio, at around six to eight percent was unimpressive and unacceptable, stating that other nationals within the Sub-Saharan region are doing better.
     
    “Other nations even within the Sub-Sahara region are doing between 14 to 15 percent. If you talk about developed countries, they are doing 35 to 40% and that is what makes them developed countries because indeed, it is really an avenue for you to support your government and hold them accountable.”
     
    Mr. Sanwo-Olu noted that with this collaboration, the State was on track to rise above its N1.7 trillion to within the region of four to five trillion Naira.
     
    The Honorable Minister of State, Budget and National Planning, Prince Clem Agba commended the two tax authorities for this landmark agreement, and appealed to other states to follow suit.

  • Feature: Era of Right Tax Revenue Utilisation in Africa Beckons

    By Kelechi Okoronkwo

    Success thrills: The Executive Chairman of FIRS, Muhammad Nami, takes his message of rethinking utilisation of tax revenue to ATAF General Assembly.

    A major take-away from the just concluded Seventh General Assembly of the African Tax Administration Forum (ATAF) which held in Lagos, Nigeria, from October 31 to November 4, 2022 is that tax money must be put into good use if more tax revenue is to be generated. Heads of tax agencies from 42 African countries and more than 500 other participants, comprising of 380 registered participants who attended physically, 100 registered participants who participated virtually and about 65 participants who were members of dignitaries’ entourage, were welcomed in Lagos with that simple statement of fact; and that statement reverberated in all discussions throughout the five-day continental tax engagement.

    Over the years, taxmen have avoided this sore part of tax administration. In most tax jurisdictions in Africa, the constitutional responsibility of taxmen ends with the generation or collection of tax revenue. The utilisation of the revenue is left for the government to decide. As a result, taxmen did not even attempt to remind the government of the social contract between the taxpayer and the government.

    The subsisting social contract is that while taxation represents a compulsory transfer of wealth from private citizens to the state, it is publicly desirable only if tax revenue is consistently translated in improvements in publicly provided goods and services, and broader improvements in the quality of governance. In other words, while it is the obligation of the citizens to pay taxes to the government, it is the responsibility of the government to utilise the tax revenue properly to provide the citizens with needed services and infrastructure.

    Taxmen literally endured confrontations by taxpayers who always demanded evidence of tax revenue utilisation. Reports from field show that taxmen often faced stiff resistance from taxpayers during tax compliance drives. As a result, tax administrators lose revenues; and in some cases, get humiliated or even manhandled by angry taxpayers who demanded value for money paid as taxes.  The outcome statement of the Chartered Institute of Taxation of Nigeria (CITN) in its collaborative meeting with the Kwara State University (KWASU) in August 2022 noted that the major cause of low tax compliance in Nigeria was ‘Trust Deficit’ of the taxpayer for the government. A taxman, during the ATAF conference, shared his experience during a tax drive in one market his country’s capital city. The moment the traders identified the group of taxmen who were on tax drive to some offices in the market, the traders mobilised and chased the taxmen out of the market, saying that the government neither constructed access road to the market nor provided power supply to the market after many years of mobilising revenue from the market.

    In Nigeria, the Executive Chairman of the Federal Inland Revenue Service (FIRS) has been championing calls for public office holders to ensure right utilisation of the taxpayers’ money. Nami had observed that taxmen in Nigeria faced resistance from taxpayers because Government at various levels are not doing enough to produce evidence of good use of the taxpayers money. He then started open campaign for judicious and effective deployment of tax revenue. Nami took the call to the ATAF General Assembly in Lagos. In his welcome remarks, Nami urged heads of tax administrations in Africa never to shy away from highlighting the strong nexus between improved tax revenue collection and improved utilisation of the tax revenue. In Nigeria for instance, while available records show that the government at some levels, is making effort to provide the taxpayers with basic social amenities, it is also true that the culture of right tax utilisation needs to permeate the system such that it becomes anathema for any public office holder to divert or misuse the taxpayers’ money. This is the central theme of Nami’s effervescent messages on tax revenue utilisation.

    Interestingly, the theme of the ATAF conference was “Rethinking Revenue Strategies: The Human Face of Taxation”. Nami seized the opportunity to further escalate his thoughts to his colleagues, that giving a human face to taxation involves making the tax money work for the taxpayers, insisting that governments across Africa must begin to rethink governance, engender public confidence and trust in government by providing value for taxpayers’ money in line with the responsibilities of governments under the social contract they have with citizens. He added that it was imperative for African tax administrators to mobilise and speak with one voice as a regional bloc on global tax issues for their collective interests.

    “The fiscal social contract which hinges on the willingness of the citizens to pay tax in return for the provision of public service, is a clarion call on the government at all levels in Africa to rethink governance.

    “In my view, if we must transform the tax system and enhance revenue collection in Africa, there is the need for the government at all levels to engender public confidence and trust in government by providing value for taxpayers’ money,” Nami said.

    Nami also stated that governments should reconsider how projects are reported in the public space, with such reports communicating to convey the idea that taxpayers’ money’s is used to fund infrastructural projects. 

    Also, Lagos State Governor, Babajide Sanwo-Olu who was represented by chairman of the Lagos State Internal Revenue Service (LIRS) Mr. Hamzat Ayodele Subair, in the same vein said that there was the need to give taxation a human face, by implementing projects with taxpayers’ moneys that impact the lives of the citizens. Taking Lagos state for instance, Sanwo-Olu said there can be no development without funding. And in return, the Lagos State Government has given a human face to taxation by providing the taxpayers with their basic needs.

    “There is no development without funding. We have amongst others, embarked on major transformational infrastructure projects cutting across transport, health, education, agriculture, and technology amongst others.

    “These major infrastructural interventions are designed to improve the quality of life of our citizens and re-engineer economic growth and development trajectory with improved productivity of our citizenry, which invariably improves our tax generating abilities. In a bid to save the human face of taxation, communication and feedback from the taxpayer are of paramount importance,” Mr. Subair noted.

    Similarly, in his remarks, the Executive Secretary of the African Tax Administration Forum, Mr. Logan Wort noted that a critical component of rethinking Domestic Revenue Mobilisation is to ensure that the government has an impact on the lives of citizens.

    “While we consider strategies or frameworks within which to enhance Domestic Resource Mobilization on the continent, we must always put into perspective its primary objective—being the impact on people’s lives as reflected by ATAF’s mandate in the new decade which is to serve the higher purpose of enabling and assisting African governments to mobilize their own domestic resources through taxation in order to build states that foster economic growth and social development in the interest and wellbeing of all their citizens.

    “This mandate, especially the latter part, is one we all share in various capacities across our jurisdictions, and one that must drive our Domestic Resource Mobilization objectives”, Mr Wort said.

    Nami’s call for right tax revenue utilisation by African governments dominated discussions throughout the conference; and became a profound peg for rethinking taxation strategies in Africa. With the dramatic acceptance of Nami’s speech amongst the tax administrators, as evidenced by various reactions of participants in the tax conference, there is already a silver lining in the cloud; and one could be optimistic that African Governments would heed these calls for effective tax revenue utilisation; which will in turn cause upshoot in tax compliance and revenue mobilisation in Africa.

    Kelechi Okoronkwo is a Media Support Staff of the Executive Chairman, FIRS.

  • FIRS Opens 25 New Satellite Tax Offices Across Nigeria

    FIRS Opens 25 New Satellite Tax Offices Across Nigeria

    …officially launches, Micro and Small Tax Office, Epe, Lagos
     
    The Federal Inland Revenue Service (FIRS), has announced the opening of 25 new Tax Offices across the country.
     
    These new Tax Offices, approved by the Muhammad Nami-led management, are part of the Service’s goal to bring tax services nearer to the tax paying public while bringing FIRS nearer to the public.
     
    These new Tax Offices would help bring many taxpayers into the tax net, help filling of Companies’ Income Tax, and Value Added Tax as well as monitor compliance with other Taxes.
     
    Speaking at the launch of one of these new Tax Offices—the Micro and Small Tax Office, Epe, Lagos—last week, the Group Lead, General Tax Operations Group, Kabir Abba, stated that the FIRS Management holds these offices as important, and expects them to spearhead tax collection activities in the area.
     
    He noted that the Executive Chairman, FIRS, Muhammed Nami, had directed that staff at these offices were expected to take the assignment very seriously while working tenaciously towards bringing more taxpayers into the tax net.
     
    Mr. Nami had noted that the deployment of technology had made their work easy, especially since the taxpayers could work from the comfort of their offices and homes, to register for tax, file returns and pay their taxes in a quick and seamless manner, including applying for their Tax Clearance Certificate.
     
    Also addressing the Tax Officers at Epe, the Director Technical of the Service, who also serves as the Chairman of the New Satellite Tax Offices Implementation Committee, Barr. Iro Ukpai urged the office to reciprocate the confidence entrusted to them by the management by ensuring that they go all out to the field to bring all the Taxpayers who have not been paying their taxes into the tax net.
     
    The Tax Controller, Chinedu Adirije in his comments promised the Group Lead that the Tax Office is ready to do its best to bring in all the leaking tax revenues from Epe into the government purse and contribute towards realizing the N10.4 trillion target given to the FIRS by the government.

  • ATAF General Assembly: Nami calls for Effective Revenue Utilization by African Governments

    ATAF General Assembly: Nami calls for Effective Revenue Utilization by African Governments

    Governments across Africa must begin to rethink governance, and engender public confidence and trust in government by providing value for taxpayers’ money in line with their obligations under the social contract they have with citizens.

    This was the call made to African Governments by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami at the Opening Ceremony of the African Tax Administration Forum (ATAF) 7th General Assembly, held in Lagos, Nigeria, Tuesday.

    Muhammad Nami who made this call in his opening remarks to the 7th General Assembly, with the theme “Rethinking Revenue Strategies: The Human Face of Taxation,” added that it was imperative for African Tax Administrators to mobilise and speak with one voice as a regional bloc on global tax issues for their collective interests.

    “The Fiscal social contract which hinges on the willingness of the citizens to pay tax in return for the provision of public service is a clarion call on the government at all levels in Africa to rethink governance.

    “In my view, if we must transform the tax system and enhance revenue collection in Africa, there is a need for the governance at all levels to engender public confidence and trust in government by providing value for taxpayers’ money”, Nami said.

    Nami also stated that governments should reconsider how projects are reported in the public space, with such reports communicating to convey the idea that taxpayers’ money is used to fund infrastructural projects.

    The Executive Governor of Lagos State, Babajide Sanwo-Olu who was represented by the Executive Chairman of Lagos State Internal Revenue Service (LIRS), Mr. Hamzat Ayodele Subair, in the same vein said that there was the need to give taxation a human face, by implementing projects with taxpayers’ money that impact the lives of the citizens.

    “There is no development without funding. We have amongst others, embarked on major transformational infrastructure projects cutting across transport, health, education, agriculture, technology amongst others.

    “These major infrastructural interventions are designed to improve the quality of life of our citizens and re-engineer economic growth and development trajectory with improved productivity of our citizenry, which invariably improves our tax generating abilities.

    “In a bid to save the human face of taxation, communication and feedback from the taxpayer are of paramount importance,” Mr. Subair noted.

    Similarly, in his remarks, the Executive Secretary of the African Tax Administration Forum, Mr. Logan Wort noted that a critical component of rethinking Domestic Revenue Mobilization is to ensure that government has an impact on the lives of citizens.

    “While we consider strategies or frameworks within which to enhance Domestic Resource Mobilization on the continent, we must always put into perspective its primary objective—being the impact on people’s lives as reflected by ATAF’s mandate in the new decade which is to serve the higher purpose of enabling and assisting African governments to mobilize their own domestic resources through taxation in order to build states that foster economic growth and social development in the interest and wellbeing of all their citizens.

    “This mandate especially the latter part is one we all share in various capacities across our jurisdictions, and one that must drive our Domestic Resource Mobilization objectives”, Mr. Wort said.

    The 7th ATAF General Assembly, which is being hosted by the FIRS, has in attendance tax administrators from 41 tax authorities in Africa. It is the first physical gathering of the forum since the COVID-19 pandemic.