Joseph Inokotong, Abuja and Layi Olanrewaju, Ilorin
Nigeria’s 36 States may have recorded a huge leap in their Internally Generated Revenue (IGR), from N800 billion in 2016 to N1.16 trillion in 2018, indicating a 46.11 per cent.
This was as Nigeria’s tax database increased from 10 million to 20 million, with its target of 45 million taxpayers nationwide by December 2019 still in focus.
The Chairman, Joint Tax Board (JTB) and Executive Chairman, Federal Inland Revenue Service (FIRS), Tunde Fowler, who disclosed this in Ilorin yesterday, at the North Regional launch of the New Taxpayer Identification Number (TIN) Registration System and consolidated national tax database programme, said the new system also provides immense benefits to the taxpayers. “The consolidated database apart from providing a unique identity to the taxpayer also facilitates ease of compliance. It limits the incidence of double taxation and is a prerequisite for a number of transactions such as sale and purchase of immoveable property, registration of vehicles, applications for plot of land, import and export licence, registration as a contractor, entry visas among others. Ultimately, the system promotes the ease of doing business for both individuals and corporate bodies.”
Fowler listed the achievements of the JTB under his tenure to include, “The expansion of the tax base from 10 million to 20 million taxpayers with the potential for an increase of up to 45 million before the end of the third quarter of 2019, growth in the IGR of States by over 46.11 per cent from N800.02 billion in 2016 to N1.16 trillion in 2018; a growth of FIRS collections by 53.81 per cent from N3.30 trillion in 2016 to N5.32 trillion in 2018; with 2018 total collection of N5.32 trillion being the highest ever in the history of the FIRS. Fowler also noted that Non-Oil Revenue, with a collection of N2.85 trillion accounted for 53.63 per cent of total revenue collection. This also includes “Payment by the Federal Government of the total sum of N135.8 billion representing all outstanding PAYE tax liabilities owed by Federal MDAs to States from 2002 to 2016; with a total of N31.08 billion paid to the States in the North-Central geo-political zone, stressing that “we are confident that this gesture by the Federal Government will encourage state governments to also reciprocate and promptly remit all Withholding Taxes and VAT due to the Federation Account.”
The FIRS added, “a positive movement during the same period by Nigeria up 25 points in the Tax Administration Section of World Bank ‘Ease of Doing Business’. This positive progression is also reinforced by the recent listing of Nigeria as one of the ‘top 20 improvers in Doing Business for the year 2020’ by the World Bank. We expect that more positive country reports will be released by the time the full report of the World Bank is released on October 24, 2019.
“The TIN Registration Go-Live event which has brought together all tax authorities with a common vision and goal, is poised to change the financial profile of Nigeria and particularly, lay a strong financial foundation to fund government at all tiers beyond aid, grants and borrowing”. Fowler said.