The Minister of the Nigerian Federal Capital Territory (FCT), Malam Muhammad Musa Bello, has tasked all stakeholders involved in Internally Generated Revenue (IGR) in the FCT to work assiduously with other stakeholders to improve revenue generation in the nation’s capital, citing Lagos State, the commercial hub of Nigeria, as an example.
The Minister gave the task while delivering a keynote address at a stakeholders’ retreat held in Lagos State with the theme, “Towards a Harmonized Revenue Management Framework in the FCT“.
Bello, while emphasizing the need for the FCT to up revenue generation, said, though the administration is not doing bad in revenue generation, there is the need for revenue agencies and departments within the nation’s capital to work closely to up the IGR of the FCT.
“In a nutshell, the FCT is not faring badly, but it is not yet ‘uhuru’ because we are performing far below our set expectations in terms of revenue generation and I am confident that this retreat will enable us to consolidate and reposition on the right pedestal to even overtake Lagos in the area of Internally Generated Revenue.
“In terms of per capita IGR, FCT was last year placed next to Lagos, ahead of Rivers State with N24,600 per person.
“Judging from FCT’s population estimates of 2006 census, inclusive of the 5 percent growth rate between 2016 and 2020, Rivers State places third with IGR per capita of N15,281.
“However, in terms of total amount of IGR for 2020, FCT generated little over N102 billion and was ranked third behind Rivers State, which realized N117.19 billion“, he added.
The Minister, who was represented by the FCTA Permanent Secretary, Mr. Olusade Adesola, further pointed out that with its huge potentials and unique status as the seat of the Federal Government, the FCT should naturally do better.
According to him, “With the huge resources we have in the FCT, if properly topped and effectively managed, no one will see our back in revenue generation, and we will not have to be running “cap-in-hand” to the Federal Government for allocation when we can actually raise these funds and take the Federal Allocation as additional income.
“Our IGR alone should be more than adequate for self-sufficiency in the delivery of effective services and infrastructure, in line with global standards, for all residents, all Nigerians and visitors.
“Expectation from the public from us is huge and we are obligated to deliver on government promises. No one is willing to accept any excuses, neither is the FCT Administration willing to entertain excuses.”
Commenting on the controversy surrounding right of collection, Malam Bello decried that lack of trust and confrontational practice impede revenue collection process.
“We are all aware of the challenges associated with claims over rights of revenue collection in the FCT and attendant issues of multiple taxation, and this greatly impacts adversely on our ease of doing business because it erodes confidence and builds discouragement instead of the other way round.
“Several meetings have been conducted in this regard, and several decisions have been reached, but we are not there yet. If we were home and dry on this knotty issue, we won’t be here. I am sure our Area Council Chairmen or their representatives and other stakeholders are also very concerned about this.
“We must work out a mutually acceptable mechanism that is foolproof, such that can block all loopholes in the collection of our huge revenue resources.
“As I mentioned earlier, let us also look into ways we can expand our revenue base in fallow areas, not necessarily increase the rates so as not to burden our people.
“Most importantly, we should also direct efforts at centralizing our collections and avoid the use of thugs, with a view to tackling the problem of multiple collections.”
In an opening remark earlier, the Permanent Secretary, who was represented by Director, Abuja Geographic Information Systems, stated that “imposition and collection of taxes revenues was a Constitutional obligation that binds the citizens and their leaders and provides the needed resources for progressive national development.
“Regrettably, the administration of this delicate Constitutional responsibility and obligations at sub-regional levels and in particular, some FCT Area Councils, still leave a huge gap for debate and controversies.”
Adesola berated an “avoidable incident where customers were locked inside a restaurant in the FCC by overzealous Area Council’s Revenue officials that gravely embarrassed the Government.”
He stated that the event was an avenue for all the stakeholders to “evolve a revenue management framework that is effective, workable and equitable to all.”
On his part, the Lagos State Governor, Babajide Sanwo-Olu, noted that tax collection was the most important function of government because without it, government can not provide services like security, infrastructure and foreign relations, among others.
The Governor, who was represented by Lagos State Commissioner of Finance, Dr. Rabiu Olowo, revealed that his State’s robust Land Use Charge has harmonized all land-based revenue sources with Local Governments, which has also helped build its data base and necessitates collaboration, which he warned FCTA could not shy away from.
Chairman, Gwagwalada Area Council, Hon. Adamu Mustapha Denze, who spoke on behalf of other Council Chairmen, demanded that Chairmen should be made automatic board members of the FCT-IRS, a demand Olusade Adesola said was noted and would be looked into.
Chairman, FCT-IRS, Abdullahi Odey Attah, in his welcome address, revealed that the FCT Administration was perfecting efforts on its Property Tax Bill which will further shore up FCT’s IGR.
Attah also stated that despite the pandemic last year, his organization was able to improve revenue generation, even as he called for cooperation of the Area Councils, other stakeholders and urged the public to always pay tax.
Paper presentations at the 3-day retreat included, “Towards a Harmonized Revenue Management Framework in the FCT” by Ifueko Omoigui Okauru of Compliance Professionals Plc; “Sub-Regional Revenue Management; The Way Forward”, by Taiwo Oyedele of Africa Tax and Legal Services; and “The Harmonized Revenue Collection in Lagos State; The Success Story” by Ayodele Subair, the Executive Chairman, Lagos Internal Revenue Service.
Others were, “Tackling the Issues of Multiple Taxation” by Ayoola Iyabo Oyeyemi, Permanent Secretary, Ministry of Finance Lagos; “Legal Framework for a Harmonized Revenue Management in the FCT” by Yusuf Wodi, Solicitor General, FCT; and “Professionalizing Revenue Management” to be handled by the CITN President, Dame Gladys Olajumoke Simplice.
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