In Nigeria’s ever-evolving fiscal landscape, Niger State Government is emerging as a leader in revenue generation reform.
The Chairman of the Niger State Internal Revenue Service (NGSIRS) Mohammed Madami Etsu shared exclusive insights with Nairametrics, detailing the agency’s transformation from the challenging years of 2020–2022, marked by the COVID-19 pandemic, to the reform-driven era of 2023–2024.
Amid the disruptions of the pandemic, NGSIRS faced significant hurdles but emerged with a renewed focus on resilience and innovation.
In this revealing interview, the Chairman highlighted the agency’s bold steps toward leveraging technology, enhancing taxpayer engagement, and promoting transparency in revenue collection. With an ambitious target of generating N63 billion in internally generated revenue (IGR) by 2025, NGSIRS is setting a benchmark for modern tax administration, offering valuable lessons for revenue agencies across Nigeria.
Nairametrics: Looking back to 2020–2022, how would you describe the financial performance of NGSIRS during this period?
Chairman, NGSIRS: The period from 2020 to 2022 was undeniably challenging for us. The COVID-19 pandemic disrupted economies globally, and Niger State was no exception. Despite these challenges, we worked tirelessly to improve revenue collection. While our financial performance fell short of projections, the resilience of our team and the systems we had in place ensured that we were able to stabilize operations during that difficult time.
Nairametrics: What were the major challenges that NGSIRS faced in achieving its revenue targets during this time?
Chairman, NGSIRS: Three key challenges come to mind. First, our reliance on manual tax administration systems posed significant inefficiencies and resulted in revenue leakages. Second, the pandemic itself had a profound impact, stalling economic activities and reducing the tax base. Third, our limited adoption of technology hindered our ability to innovate and meet the demands of a modern tax administration system.
Nairametrics: Were there any policy or structural changes implemented to address these challenges?
Chairman, NGSIRS: Absolutely. The passage of the Consolidated Tax Revenue Law in 2022 was a game-changer. This law granted autonomy to NGSIRS, enabling us to improve revenue collection and administration significantly. In addition, we undertook a comprehensive reorganization of the agency to enhance operational efficiency and align with global best practices.
Nairametrics: How did the pandemic affect your operations and revenue generation?
Chairman, NGSIRS: The pandemic disrupted every aspect of our operations. Reduced economic activities meant a diminished tax base, and the logistics of tax collection were severely impacted by movement restrictions. However, it also brought into sharp focus the need for a more resilient and technology-driven revenue system, which has been a key takeaway for us.
Nairametrics: What were the biggest lessons learned from the 2020–2022 period?
Chairman,NGSIRS: Two main lessons stand out. First, the importance of technology in revenue administration cannot be overstated. Leveraging digital tools is critical for efficiency and minimizing leakages. Second, the autonomy granted to NGSIRS through the 2022 law highlighted the need for an independent and empowered revenue service to achieve our targets effectively
Nairametrics: Fast-forward to 2023–2024, what are the major initiatives currently being prioritized?
Chairman, NGSIRS: We have placed a strong emphasis on the digitalization of tax administration. Our e-taxation system, which allows for online tax payments and registration, is central to this. Furthermore, we have prioritized taxpayer education and engagement, ensuring that compliance is voluntary, and taxpayers understand the importance of their contributions.
Nairametrics: How is technology shaping NGSIRS operations today?
Chairman, NGSIRS: Technology has become integral to our operations. The e-taxation system has revolutionized the way we collect taxes, making the process seamless and transparent. Additionally, our digital platforms have enhanced taxpayer engagement, allowing us to communicate effectively and provide real-time support to our taxpayers.
Nairametrics: What is the current state of revenue performance for NGSIRS?
Chairman, NGSIRS: Our revenue performance has shown significant improvements. While we are still working toward meeting our ambitious targets, the reforms and technological advancements implemented are already yielding positive results.
Nairametrics: What strategies are in place to address tax compliance and taxpayer engagement?
Chairman, NGSIRS: We are tackling this on multiple fronts. Taxpayer education programs are designed to foster voluntary compliance by informing taxpayers about their obligations and benefits. Regular audits and compliance checks ensure adherence to tax laws, while our engagement initiatives build trust and transparency.
Nairametrics: Looking ahead to 2025 and beyond, what are NGSIRS’s key strategic goals?
Chairman, NGSIRS: Our primary goal is to achieve an internally generated revenue target of 63 billion Naira by 2025, as outlined in the farmer governor’s budget. To do this, we plan to leverage the newly commissioned Geographic Information System (GIS) by Governor Bago to optimize the collection of ground rents and other land-related taxes.
We also aim to capitalize on Niger State’s proximity to the Federal Capital Territory, Abuja. By collaborating with the FCTIRS, we will ensure that we collect our fair share of taxes from residents who live in Niger but work in Abuja. Additionally, the state’s economic space, which has been opened up to agriculture and related industries by His Excellency Farmer Governor Umaru Bago presents a great opportunity for growth and revenue generation.
Nairametrics: What message would you like to convey to stakeholders in Niger State?
Chairman, NGSIRS: My message is one of optimism and collaboration. At NGSIRS, we are committed to creating a transparent, efficient, and inclusive tax administration system. With the support of taxpayers, government, and all stakeholders, we can achieve remarkable growth and make Niger State a model for revenue generation in Nigeria. Together, we can build a sustainable financial future for the state.
