From Uche Usim, Abuja
A strategic blueprint towards weaning States off over-reliance on federal monthly subvention by boosting their Internally Generated Revenue (IGR) has been designed by the Ministry of Finance Budget and National Planning (FNFBNP).
The programme, created by the Ministry, in collaboration with the Nigeria Governors’ Forum (NGF) involves a series of capacity building activities, States exchange visits to foster peer learning on its World Bank-funded States Fiscal Transparency Accountability and Sustainability (SFTAS) Programme-for-Results.
As a pilot, six States (Gombe, Delta, Nasarawa, Ebonyi, Sokoto and Ekiti State) representing each of the geopolitical zones were selected to take part in an IGR exchange visit to Lagos State Internal Revenue Service (LIRS), the Ministry of Finance, Land Bureau, Geographical Information System and other revenue generating agencies of the State. The theme of the 3-day visit, which held recently was “Exploiting New Growth Areas for Revenue Mobilisation”. At least four officers including revenue officers, tax audit officers, State GIS and land administration officers from each of the participating States benefited from the visit. Learning outcomes included hands-on experience of tax administrative processes, procedures, adoption of innovative technology, inter-agency collaboration and more importantly taxpayer relationship management which participants experienced during their visit to two LIRS field stations (Alausa and Ikeja).
The Chairman, Lagos State Internal Revenue Service (LIRS) Mr. Ayodele Zubair told the delegation that the Service had in 2020 grossed NGN418 billion in tax revenues despite the COVID-19 pandemic and its socio-economic impacts. This also represented a 4.8% year-on-year growth from NGN 398.7 billion generated in 2019 and 101% of the revenue target assigned to it by the State government. Although much of the progress was attributed to data driven tax administration and technology adoption; the purpose driven institutional arrangements, human resourcing, social contract strengthening and the political will of the Governor of Lagos State were no doubt major growth factors as well.
The Senior Programme Manager of the Nigeria Governors’ Forum (NGF) Help Desk and SFTAS Technical Assistance Programme, Mr. Olanrewaju Ajogbasile, who led the States on the visit expressed confidence in the participants, likening them to change agents who will drive the adaptation of specific reforms considered innovative and complimentary to their current tax operations in their respective States. He expressed his gratitude and commendation to the Lagos State government which continues to serve as a center for excellence on tax administration in the country.
The event ended with participants sharing their learning outcomes and networking with each other.