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Taxation

FCT-IRS moves to boost revenue by priortising institutional framework

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The Acting Executive Chairman of the Federal Capital Territory Internal Revenue Service (FCT-IRS), Mr. Haruna Abdullahi has indicated that the management of the Service has priortised institutional framework as key strategy to boost revenue generation in the territory, steadily.

A statement by the Head Corporate Communications of the service Mustapha Sumaila quoted Abdullahi to have spoken in a key note address on “Accounting for a better world” at the Annual Association of Chartered Certified Accountants (ACCA) Members, Partner Employers and Students Summit 2023 in Abuja.

He explained that what the management of the Service under his leadership has been doing in the last two years was to build a strong and robust system that would outlive them, thereby making processes and procedures of tax administration easier and seamless with a view to enhance tax collections.

“What we have been doing in the last two years is to build the institutional framework to fit into globally recognised institutions that will be a model for not only our counterpart agencies in Nigeria but in Africa.

“We have carried out a number of reforms to reshape the Service to enhance our revenue drive in the FCT. We have stepped up on our awareness campaigns to educate taxpayers on all our processes as well mobilise the prospective taxpayers to be in tax net.

“Our engagement with our major stakeholders has been enhanced overtime as we constantly engage them, update and educate them on decision, direction and introduction of any policy in order to carry them along.

“Capacity building of staff has been an utmost priority for the Service more than ever. We cannot have efficient and committed workforce if the staffers are not well trained to deliver optimally.

“From what we have done so far, in the next few years, there will be visible impact in terms of what the Service will be generating” he stated.

The FCT-IRS boss while speaking to students at the Summit, admonished them on the importance of mentorship when making career choices, as guides from their mentors would go a long way in shaping their career paths.

Abdullahi who is also a Fellow of ACCA underscored the need for mentors and successful persons in their choosen endeavours in the society to identify talents and build them to become great people in their careers.

The FCT-IRS chairman while commending the ACCA for organising the summit, stated that the association had given him global opportunity to work around the world hence urged the participants to tap from this privilege to change their destiny.

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Taxation

FIRS deploys technology to capture market traders to expand VAT collection

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The Federal Inland Revenue Service (FIRS) has rolled out the implementation of the Integrated Market Revenue Management System (IMRMS), a purpose-built digital platform, to capture the informal sector, especially market traders in the federal government’s tax net.

The FIRS is to collaboration with Market Traders Association of Nigeria (MATAN), the umbrella body for all trading associations in Nigeria, to collect and remit Value Added Tax (VAT) from traders in marketplace, using the IMRMS platform.

The collaboration code named as the VAT Direct Initiative (VDI), is part of a deliberate move to expand the government’s tax base.

MATAN which is the largest player in Nigeria’s market space has a membership of over 40 million traders across the country.

Under the arrangement, MATAN is expected to digitally enumerate its members, give them a digital identity and track their turnover so that VAT accrued is collected and remitted to the FIRS.

Through this initiative, the FIRS will help tackle multiple taxation in the marketplace through partnership with security agencies to curb the activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection in Nigeria’s market spaces.

Speaking at an the official launch of traders enumeration exercise in Abuja, Mr Adebayo Adefeogbe, a director in the FIRS, said the initiative would grant the government coordinated access to almost 70 per cent untaxed revenue in the informal sector.

He said collecting VAT from over 40 million traders would enable the government to provide basic amenities in marketplaces across the country.

Moses Ige, MATAN National Coordinator of Incentives, urged market leaders who were present at the event, to sensitise members of various market associations to ensure that they are captured for the VAT Direct Initiative (VDI).

He listed the benefits of VAT Direct Initiative for registered traders to include health insurance, micro pension, general insurance cover, low-interest and non-collaterised business loans and grants, provision of  provision of social amenities in marketplaces and free legal services.

Ige said, “All the services, including health insurance scheme, enjoyed by those in the public sector will also be extended to those in the informal sector. Registered MATAN members will have access to free medical care.

“Registered traders will also enjoy insurance cover in case of any loss as a result of disasters, have access to loans, and enjoy micro-pension scheme. We are working with the National Pension Commission (PENCOM) to get our members registered for the contributory pension scheme.

“With the VAT Direct Initiative, the government will get more revenue to execute capital projects in markets across the country.

“We are also partnering with Bank of Industry (BOI) to ensure that every small business owners have access to loans.”

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Taxation

JIRS chair accuses revenue collection agencies of sabotaging tax collection in JIgawa

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By Ahmed Rufa’i, Dutse

The Jigawa state Internal Revenue Service (JIRS) has accused some revenue generatiing agencies of sabotage in local revenue collection in the state.

The executive chairman of services, Malam Nasir Sabo Idris gave the indication at the launch of Jigawa Enlightenment and Engagement Team (JEET) with the aim of improving revenue generation in the state.

The executive chairman lamented over the lackadaisical attitude of most of the revenue generating agencies in the state towards their mandate of revenue and tax collection.
He also alleged that the little they collected some times are not remitted to the government account.

Malam Nasir Sabo Idris who also observed that the agencies were also not represented at the launching of Jigawa Enlightenment and Engagement Team (JEET), despite timely invitation extended to them

He attributed the continued decline of internally generated revenue in the state to inadequate tax payers enlightenment and engagement in addition to poor commitment by tax and revenue collectors.

According to him with the new strategies applied in modernizing and digitizing tax collection system, the board is targeting to increase the revenue generation by twenty percent in the first quarter of 2024.

The Chairman expressed the optimism that they will increase the state ‘s Internally Generated Revenue (IGR) by sixty percent at the end of next year adding that it will be doubled in the next two years.

According him, the JEET team is aimed at creating more awareness, understanding and cordial relationship between the tax payers and tax collectors in the state with the hope it will block all leakages and tax fraudulent collection.

Malam Idris maintained that the JEET would digitize taxpayers registration as well as enlighten the tax payers about electronic payment to avoid any fraudulent practice.

“Though I’m newly appointed as chairman of the board but we estimated that in 2024 the board would be able to generate N42 billion, and if the leakages are blocked we will double the tax collection by the end of this administration” ,he said.

The chairman identified some duties of the JEET to include tax payers education and enlightenment, registration of tax payers, engagement with stakeholders and Data collection, effective handling of media information among others.

He called on workers union, MDAs and all other stakeholders to cooperate with the team to achieve the desired objectives of moving Jigawa state forward.

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Taxation

NSITF reiterates resolve to implement new salary structure for welfare of its employees

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**Dismisses allegations by staff unions

The Management of the Nigeria Social Insurance Trust Fund (NSITF), has re-stated its commitment to the implementation of a new salary structure that will be free of erroneous computations, and critically reflective of the financial reality in the fund for the welfare of its staff.
A statement by the General Manager Corporate Affairs of the NSITF, Mrs. Ijeoma Oji-Okoronkwo indicated that the fund would ensure that the two staff unions in the agency fully participate in the implementation.

Also while speaking against the backdrop of allegation of award of frivolous projects, she insisted that the management has always followed due process.

According to her, the fund had executed all contracts through proper evaluation and awarded in line with due process, with advisements and necessary approvals from the Bureau of Public Procurement (BPP)

She said it was unfortunate that the fund’s staff union was influenced and misguided into a needless disruption of the planned activities by the management in the agency, on Thursday 16th March,2023.
According to her, by so doing they made true their earlier threats to breach industrial peace in the fund in alliance with the national leadership of Association of Senior Staff of Banks Insurance and Financial Institutions (ASSBIFI)
“We are committed to transparency in discharging our responsibilities. We have no option,” Okoronkwo said.
Addressing the claims raised by the union, the Fund stated that “The allegation of frivolous and white elephant projects being awarded and implemented are unfounded, as every contract goes through a laid down process, including NEEDS assessment before bidding .
“Every contract in the fund is first evaluated to determine its impacts and usefulness before bidding. Indeed, the current E-NSITF is in line with the Federal Government mandate on e-business and thus, received all the necessary endorsement up to the Federal Executive Council(FEC) before its implementation.
“As a matter of fact, the E-NSITF has been on the drawing board since 2015 but it took the rejuvenated management and the parent Ministry to take it, head on in 2020 in line Federal Executive Council’s directive. Hence, it received all necessary endorsements from the Parastatal Tenders Board to the Ministerial Tenders Board and finally to the Federal Executive Council.
“The E-NSITF will effortlessly ease business management processes as it is ultimately targeted at increasing efficiency in daily operational input and output.
“The contributors can now easily get compliance certificates and have enhanced access entitlements, with an improved feedback for both the fund and its customers. Importantly, transparency will take the centre stage as the fulcrum of every operation.
“Contributors will enjoy the comfort of paying online from their offices, thereby cutting off fake NSITF compliance certificate that was the order before now and equally eliminate nefarious staff members who go to employers and contributors to make deal by lowering their workers’ strength.
“What’s more? The FEC contract price came with a BPE review that saved a lot of money for the government and the fund.
Curiously, the same chief that executed this procurement, is crying wolf because his favoured contractor lost out in the bid.
“Besides, the new salary structure earlier approved was found to be riddled with errors and replete with vague details, hence, necessitating clarification that will require time for proper computation which is being handled by the Natioal Salaries Income and Wages Commission (NSIWC) that has promised to correct the anomalies and re-issue a 2023 wage structure that will still take effect from January 2023.
“NSIWC and the management of the NSITF are re-scheduled to conclude its meeting next week before this riotous picketing, stopping management members from entering their offices. “Unfortunately, ASSBIFI is aware that dialogue is on, yet, made a broadcast to its members to withdraw services against the ILO Principles at Work and the Trade Disputes Act, Cap T8, Laws of Federation of Nigeria, forbidding such action when dialogue is on.
“It is to our chagrin that the same union which is part of the review of the said salary structure, already withdrawn by the National Salaries Income and Wages Commission(NSIWC) is the one calling out members for action on the same issue.”
The statement equally indicated that the management did not demote any staff as alleged by the union.
“It rather took step to correct the anomaly in the salary structure which was observed by the NSIWC.
“Hence, two wage band had been collapsed into one with adequate administrative procedure made to ensure none in any of the bands loses seniority in tandem with the nine (9)tier salary structure that obtains in the Public Service.
“It added that this was part of the conditions set by the NSIWC for an upward salary review and promotions in the fund.”
On the alleged non-promotion of staff as well as recruitment of new staff into the management cadre, the fund noted that “a total of one hundred and forty-five staff members were promoted to the management cadre while over 600 non-management staff were also promoted in the last two promotion exercises based on performance.
“In spite, where special skills set for a particular vacancy cannot be found within the fund, the NSITF had to source for such competence from outside the existing staff members to boost productivity in accordance with the law and public service rules.”
The statement equally dismissed claims that management staff members have been enjoying unapproved salaries and allowances since 2013 .
“The board of the fund via a circular entitled “Board Approved Increases in Salaries and Allowances” dated 27th August , 2013, approved increases in salaries and allowances of all staff.
“This applied until 2021 when the New Minimum Wage Consequential Adjustment structure was effected for the NSITF, resulting in increases with effect from 2019, when the new minimum wage took off.”
The statement finally assured all staff members of the commitment of the fund to a continued social dialogue with the union members in line with the Trade Disputes Act and all relevant conventions of the ILO to adequately ventilate and amicably settle all disputes.

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