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How Nigeria’s tax revenue rose by N1 trillion

Mr Tunde Fowler Chairman, Federal inland Revenue Service (FIRS), Tax

Mr Tunde Fowler Chairman, Federal inland Revenue Service (FIRS)

Nigeria’s internally generated revenue is penned at N3.9trillion, an aggregate realisable between January and September 2018; this is a N1 trillion up from N2.9 trillion realised last year under the same period.

Babatunde Fowler, Chairman, Federal Inland Revenue Service (FIRS) registered this yesterday in a presentation made at the meeting of the African Union High-Level Panel on Illicit Financial Flow from Africa in Abuja.

The colloquium deliberated on revenue realisable and posited ways to curb the high rate of illicit capital outflows. In attendance were Thambo Mbeki (former President of South Africa), Zanaib Ahmed (Minister of Finance), Abubakar Malami (Attorney General of the Federation and Minister of Justice), and other high-profile individuals.

Fowler further commented on achievements of the FIRS, while emphasizing effort of the department in recouping stolen funds; counting his blessings, he said, so far, FIRS has unearthed possessions owned by 114 companies which have evaded taxation.

“One hundred and fourteen companies claimed they were unaware of the land allocated to them, but the AGIS (Abuja Geographic Information System) has confirmed the ownership for all the cases referred to them and we will soon hand these cases over to the Attorney General of the Federation.” – Fowler

The FIRS under the current chairmanship has fought bear and claws to recover tax monies. It pioneered VAIDs in July 2017, a scheme requiring all Nigerian tax populations on the watch to voluntarily submit self to the authority. VAIDS as a way of raking in more revenue. The emergence of VAIDS outlines the Federal Government’s plan to increase tax awareness and compliance.

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In June 2018, Fowler confirmed that VAIDS raked in about N30 billion from previous tax defaulters.

He noted that 653 of the companies are now filing their returns, while N2.98bn has so far been realised from demand notices on Abuja properties.

Plans are underway to recover lost funds in a bid to deepen deposit of tax revenue. Minister of Finance also highlighted strategies intensified at tying all loose ends. The Government has liaised with foreign countries to track funds and share intelligence on account owned by its citizens.

“…we have signed agreements on the Multilateral Competent Authority on the Common Reporting Standard…”

Thambo Mbeki, who chaired the High-Level panel, spoke on the illegal outflow of capital from the continent invariably deterring economic growth. He expressed dissatisfaction at the whopping $50 billion recorded to have left the coffer of the African Continent through undue processes.

The former President applauded the efforts of Nigerian Government to reverse reparated funds while noting that stoppage of illicit capital outflow requires a combination of effort on the path of government and stakeholders.

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