[size=15pt]FIRS boss laments Nigeria's over-dependence on oil [/size]

Written by Samuel Oyadongha
Friday, 26 September 2008
CHAIRMAN of the Federal Inland Revenue Services, Mrs. Ifueko Omoigui-Okauru yesterday expressed fear that the country might not achieve sustainable growth if after 50 years of discovery of oil it is still importing fuel.
Mrs. Omoigui-Okauru who in a keynote address delivered at a Stakeholders’ Conference on Taxation with theme “Promoting Sustainable Development through Internally Generated Revenue and other Non Oil Revenue Sources in Yenagoa also lamented the nation over dependent on oil and gas revenue alone reliance describing the development as tragic.

The Federal Inland Revenue Services boss said though the issue of over dependency on oil revenue and foreign imports has deprived the nation of imaginative tasks, it is time to start finding ways of generating 20 per cent of federal revenue from non-oil sources to avoid heavy foreign debts and stunted growth.

According to her, the three tier of government will have to partner with the Federal Government and the legislative arms of government to create an enabling law that would ensure that sustainable development is achieved through non-oil revenues.

“As a country, we are far too dependent on oil and the spending on items imported. If you look down here, now many things around us are not produced in Nigeria. We buy cars, we do not make. We wear clothes imported from outside the shores of the nation. So what do we do? These are issues that we do not discuss.

Sustainable development depends on government assuring the citizen of qualitative life in education, food supply; Life where money is available, life which research and creativity are recognized and life where wealth is created to add value to the life of the people. It is tragic today that after over 40 years of the discovery of oil, we still import.

“The first step to giving the desired life to the people has been taken by Bayelsa State and that of the vision 2020.But even if the money are spent judiciously, does it translate to development. The issue of sustainability goes beyond provision of infrastructure but the culture and mindset of the people.

It means constantly seeking ways to innovate and provide skills that will ginger good economy. We need to create a new mindset in the people that earning money can be spent on locally made goods judiciously. We need to apply funds to create wealth and need the people to connect with the government to know and ask questions on money made and spent,” she said.

Mrs. Omoigui-Okauru, who used the Bayelsa total revenue between 2003 and 2007 as a case study that the years of depending on the revenue accruable through federal allocation, 13 per cent derivation and Value Added Tax said “we should start looking for other ways. We should move the IGR of the states to 20 percent of the nation’s revenue to avoid debt and promote sustainable development.”

Earlier in his address, the Bayelsa State Governor, Chief Timipre Sylva, who was represented by his deputy, Hon Peremobowei Ebebi said the issue of exploring the non-oil revenue by the present administration is being restrained by the existence of obnoxious residency clause and the behavioural attitude of the people towards the collection of Personal Income Tax.

The governor noted that the issue could only be corrected through the immediate initiation of a bill by the National Assembly to amend the existence of tax laws on residency.

“It is most unacceptable that in spite of the fact that Bayelsa State contribute well over 40 per cent of oil revenue to the national coffer, yet we are denied huge tax revenue from employees of the oil companies operating in the state due to the residency clause.

“Definitely, this has caused the state some economic setbacks as the only major source of revenue which is statutory allocation accruing to the state from the federal government is not enough to take care of the infrastructural demands and other challenges of development of the state,” he said.

Present at the forum were the Speaker of the State House of Assembly, Hon. Werinipre Seibarugu, the state Commissioner for Finance and Budget, Dr. Sylva Opuala-Charles , the Special Adviser to the Lagos State Governor on Taxation, Ade Ipaya and the Managing Director of Skye Bank, Mr. Akinsola Akinfenwa, captains of industry among others

source:http://www.vanguardngr.com/content/view/17871/44/

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