₦airaland Forum

President Bola Tinubu may bar revenue-generating agencies from collecting revenues on behalf of the Federal Government as he plans to introduce a single agency – Nigeria Revenue Service – to handle the task.

This came as the Federal Government instituted a comprehensive set of fresh tax reforms aimed at significantly boosting revenue collection.

The reforms, designed to enhance the efficiency of collecting direct taxes, along with various levies that are imposed on behalf of the government, will bar the Nigerian Customs Service, Nigerian Ports Authority, and 60 other revenue collection agencies from participating in revenue collection activities, but will lead to the creation of the Nigeria Revenue Service.

By implementing these changes, the government seeks to streamline the tax collection process, ensuring that all taxable entities contribute their fair share and that the revenue generated is maximised to support public services and infrastructure development.

The policy directive was instituted on Thursday when the President forwarded four executive bills to the National Assembly for consideration, aiming to implement significant tax reforms.
Nigeria is contending with a revenue challenge that cuts across all government tiers but wants to attain a minimum tax-to-GDP ratio of 18 per cent. The country’s tax-to-GDP ratio is below Africa’s average and ranks as one of the lowest in the world.

This has led to fiscal deficit and over-reliance on borrowing to finance public spending resulting in a cycle of inadequate funding for socio-economic development.

One of the key proposals is the renaming of the Federal Inland Revenue Service to the Nigeria Revenue Service.

A source at the Presidency, however, hinted that the new bill would not lead to a merger but seek to remove the revenue collection arm from the agencies and allocate its function to the Nigerian Revenue Services.

“There is no merger of agencies. The bill will only take the revenue collection arm of each agency involved and take it to the Nigerian Revenue Service.

“The plan is that the new revenue agency will be like the US or UK revenue agency that collects all government revenues while other revenue agencies like NIMASA, NPA, Customs, etc, will now focus on their core mandate, which is trade facilitation. There is no merger at all,” the official said.

The bill seeking the name change for FIRS was outlined in a letter read by Senate President, Godswill Akpabio, and the Speaker, House of Representatives, Tajudeen Abbas, during the plenary sessions.

The proposed law, titled the Nigeria Revenue Service (Establishment) Bill, seeks to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007, and establish the Nigeria Revenue Service.

According to Tinubu, the new agency will be responsible for assessing, collecting, and accounting for revenue accruing to the government.

In addition to the name change, Tinubu submitted three other tax reform bills under the title, ‘Transmission of Fiscal Policy and Tax Reform Bills’ to the National Assembly.

The President also transmitted to the parliament the Joint Revenue Board Establishment Bill, which seeks to create a Tax Tribunal and a Tax Ombudsman.

He wrote, “The Nigeria Tax Bill: This bill seeks to provide a consolidated fiscal framework for taxation in the country.

“The Nigeria Tax Administration Bill: Aimed at offering a clear and concise legal framework, this bill will ensure the fair, consistent, and efficient administration of tax laws, facilitating ease of tax compliance, reducing disputes, and optimizing revenue collection.

“The Joint Revenue Board (Establishment) Bill: This proposal seeks to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman, which will work to harmonise, coordinate, and resolve disputes arising from revenue administration in Nigeria.”
Tinubu emphasised that the proposed tax bills would have far-reaching benefits for the country, promoting taxpayer compliance, strengthening fiscal institutions, and fostering a more effective and transparent fiscal regime.

“I am confident that the bills, when passed, will encourage investment, boost consumer spending, and stimulate Nigeria’s economic growth,” Tinubu stated.

On the floor of the House of Representatives, Speaker, Abbas, confirmed receipt of the bills, stressing that they were designed in line with the objectives of the present administration.

He noted that when passed into law, the bills would encourage the growth and sustainability of the economy.

The House also consolidated six bills seeking the repeal of the Fiscal Responsibility Act, 2007 to enact the Fiscal Responsibility Bill, 2024.

The bill aims at ensuring prudent management of the nation’s resources, ensuring long-term macro-economic stability of the national economy; and securing greater accountability and transparency in fiscal operations within the medium-term fiscal policy framework.

Abbas, who presided over plenary, urged the Committee on Rules and Business to fix a date for debate on the general principles of the newly consolidated bills.

The PUNCH recalls that the tax reforms are policy recommendations from Taiwo Oyedele’s Presidential Fiscal Policy and Tax Reforms Committee, which seeks to reduce taxes in the country from the current 62 to a maximum of nine.

It also aligns with the recommendations of the President Tinubu Policy Advisory Council, which proposed declaring a state of emergency on revenue generation in the country.

Speaking in an earlier interview, Oyedele noted that fiscal reforms were needed to protect small businesses, the vulnerable and the poor while effectively taxing the rich.

He said, “Revenue transformation for us means we can no longer continue to celebrate incremental progress because the base was just so small and for us, it wasn’t about raising the taxes from existing taxpayers.

“In fact, one of the things we found out is that poor persons are those paying taxes, so it is time for them to take a break which means we have to look at the system to take that burden away from the vulnerable people, small businesses and let the middle class and the rich who can afford to pay do so.

“We have a brand new national fiscal policy that sets the framework for where we want to be, where we want to go, what we want to do, and what we want to stop doing as a country. We have identified company income tax, personal income tax, value-added tax, stamp duty, capital gains, and excise tax and we have redrafted new ones.”
This new law will expunge the revenue collection function from 62 revenue-generating agencies and transfer the responsibility of revenue collection to a single agency to promote collection efficiency.

Some of the agencies include Federal Airports Authority of Nigeria, Nigerian Ports Authority, Federal Inland Revenue Service, Nigeria Deposit Insurance Corporation, Nigerian Meteorological Agency, National Agency for Food and Drug Administration and Control, Federal Road Safety Corps, Nigeria Customs Service, Standards Organisation of Nigeria and the Nigerian Airspace Management Agency.

Others are the Bank of Agriculture, Nigerian Bulk Electricity Trading, Tertiary Education Trust Fund, Federal Radio Corporation of Nigeria, Nigerian Railway Corporation, Federal Reporting Council of Nigeria, Nigerian Maritime Administration and Safety Agency, Corporate Affairs Commission, Nigeria Civil Aviation Authority, National Broadcasting Commission and Joint Admission Matriculation Board.

Commenting on the implications of the new law, a former National President of the National Association of Government Approved Freight Forwarders, Dr Eugene Nweke, faulted the bill.
He added that customs all over the world were known for revenue collection.

“Customs all over the world are known for revenue collection. What it means is that they would outsource that function to a third party. Customs all over the world are known for revenue collection and anti-smuggling operations,” Nweke said.

According to him, revenue collection had lots of technicalities.

“What they should do with Customs is to train our importers and compel the NCS to go beyond the issues of scanning with a lot of compromises. The government should stop always thinking of how to protect a bill,” he advised.

also reacting, National Public Relations Officer, Association of Registered Freight Forwarders of Nigeria, Taiwo Fatobilola, said, “It is not possible, don’t mind the government. They think revenue collection is what anybody can wake up and start with? Do they know how much it takes to train people on something the NCS have been trained to do? Please don’t mind them, it’s not possible.”
however, National Public Relations Officer, Nigeria Customs Service, Abdullahi Maiwada, said he was not aware of the bill.

“I am not aware of that, I am just hearing it from you,” Maiwada told The PUNCH.

SOURCE: https://punchng.com/tinubu-plans-to-bar-customs-npa-others-from-revenue-collection/

Tinubu is on the right track. We need to streamline these processes and maximize revenue collection.

HMNNN. If this can be implemented.........you have my full support.

Waiting for Rice Distribution Agency

This is a brilliant move by President Tinubu. It will help streamline revenue collection and ensure that every taxable entity pays its due.

judatech:
Waiting for Rice Distribution Agency

Wittyness

That’s a calculated strategy to smuggle in Alpha Betta.

Associations like freight forwarders, oil marketers Association or whatever they are called always oppose any change in their sectors.

How can an ordinary PRO of Association of Freight Forwarders say '...it is not possible, don't mind the government'.

What a load of cobblers.

Does he know better than the tax reform Committee headed by a renowned tax expert Mr Oyedele who is a former head of PWC or is it Delloite.

I think the freight forwarders are probably angry because government policies have rightly led to a reduction in destructive importation.

Praxis758:
That’s a calculated strategy to smuggle in Alpha Betta.

No doubt you were at the secret meeting in Aso Rock where the plot to smuggle in Alpha Betta was cooked.

Any other secrets you can reveal to us?

Toh

Let the debate begin

In addition to tax collection efficiency, I would be ecstatic if these new laws (once passed) resulted in less corruption at the affected agencies.

You collect money on behalf of government, yet the government has to beg you to repatriate the money to it

Also, agencies like Customs, FIRS etc are allowed to keep a percentage of the humungus revenue they collect to cover 'administrative cost'.

The current system is a farce.

Good to see that the most courageous, and innovative government probably in the history of Nigeria is making these far reaching changes.

This is a welcome development.

VERY BAD move, those custom and n.p.a guys will so frustrate this new policy.

Praxis758:
That’s a calculated strategy to smuggle in Alpha Betta.

You can weep as much as you please

DeLaRue:
Associations like freight forwarders, oil marketers Association or whatever they are called always oppose any change in their sectors.

How can an ordinary PRO of Association of Freight Forwarders say '...it is not possible, don't mind the government'.

What a load of cobblers.

Does he know better than the tax reform Committee headed by a renowned tax expert Mr Oyedele who is a former head of PWC or is it Delloite.

I think the freight forwarders are probably angry because government policies have rightly led to a reduction in destructive importation.

If dem born him Mana well, let him do otherwise when the President begins the implementation. Hello be the scapegoat that others will learn from. Oloshi Oloriburuku somebody

The message is loud and clear. The noise makers are not needed for the execution of this plan

This is one among several laudable reforms that are being proposed/already implemented in moves to get the country back economically. But unfortunately for the govt in power obvious short term harsh realities of the reforms are politicised, making the status quo of previous bad practices of past administrations for endless borrowing to service debt/oil subsidies,etc, look like the norm to the masses and a selling point for the opposition...

Shadomaan7:
The message is loud and clear. The noise makers are not needed for the execution of this plan

If you have lived longer in Nigeria, you'll understand that most policies are not basically for the electorates, but for the convenience of the chief executive...I mean if you use a longer axe to dig deeper.

Nigeria is always fortunate with unfortunate leaders who are solely interested in adding the title of the president to their name.

Bola Tinubu Ahmed, whatsoever his name is, has no progressive blueprints for Nigeria. It's gonna be failure and propaganda press releases until they remove him and force Shettima, the loud jakass who is now doing like a quiet tortoise, on Nigeria.

The only truth you need to know is that inasmuch as they keep travelling abroad for medical treatments, and ex leaders permanently living abroad, they will continue to milk the country so dry until the aerolas of green fades, and her nipples bleed.

Whatever that would bring goodness,, so far he implements it well, and the outcome is good ((with MINIMAL corruption)) -- I don't have problems with it.

I only have problems when the seemingly good policies turns out to be vehicles of severe corruption.

This has been Taiwo Oyedele's arguments for years.

All those customs officials are meant to protect boarders and prevent smuggling but what we have is they are in charge of money with pot bellies everywhere.

Very very good move!

Praxis758:
That’s a calculated strategy to smuggle in Alpha Betta.

You are one of the few intelligent people here

Tinubu is setting up another Alpha beta proxy where all revenues generated in Nigeria will pass through and he will be collecting his 10%. Do u know what that means? That alone could make the Tinubus among the top 10 richest in the world.

He is replicating his tiffing spree that worked in Lagos across Nigeria now. Choi, Nigeria is in the hands of a massive klepto….

Tinubu is firing on full throttle. Ride on the people's president...

That Koko guy don finally Cast NPA

Better, agents of these agencies have been siphoning FGs revenue for decades, it’ll be over soon, especially Customs and NPA

Okay

Always planing to. Policies that don't reflect on the life of Nigerians