Tag: failures

  • Baba Iyabo and “failures”

    Chief (Gen.) Dr. Olusegun Obasanjo, the one and only Baba Iyabo, former commander-in-chief now turned finger-pointer-in-chief, has been pointing fingers at “failures” of late — but doesn’t he always?

    Addressing some youths at Abeokuta, he slammed President Muhammadu Buhari and his government as “failures”, insisting failure has no other name.

    Yeah right!  As a veteran and head of two failed presidential terms, Baba Iyabo should know — particularly of those hidden grades of failure, not so obvious to the naked eye.  As the Yoruba would say, only the seasoned, baron thief could trace the footsteps of another on a shiny rock!

    Well, if you huffed and puffed for eight presidential years, and you couldn’t make a dent on the Lagos-Ibadan expressway, nor the Sagamu-Benin expressway, indeed you were a ringing failure; and there isn’t any other name to call it.

    Why, even the effete Jonathan logged a better performance on that score!  At least he rebuilt part of the Sagamu-Benin expressway, a task beyond the ken of Obasanjo when he was in power.

    But even if these two vital arteries were too far off, what of Obasanjo Farms’ Ota community in Ogun State?  The state of Ota roads, when Obasanjo left power, was symbolic of his tenure: shambolic and a glorious failure!

    Of course, the self-crowned “father of modern Nigeria” had “ported” to choppers, leaving those cratered and flooded and stinking roads to the hoi polloi, their best ever deals, in Obasanjo’s virulent strain of democratic feudalism.

    Road examples are lopsided?  Okay, let’s talk power.  The Obasanjo Presidency spent between US$ 12bn and US$ 15 bn (depending on whose source you’re quoting).  His glorious projection was that if — if, because the illicit third term attempt was on the cards — he left office by 2007, Nigeria would do 10,000 mw, after his glorious “reforms”.

    But after all the thunder and fury, his government seldom achieved more than 4, 000 mw at any material time, with power often dipping to as low as 1, 200 mw.  So isn’t Baba Iyabo then qualified to measure “failures”, since his own government was nothing but that?

    Ha, lest we forget!  When the presidential emperor was still pushing his weight in Abuja, zealously impressed by his own enormous powers, a certain Bola Tinubu, as governor of Lagos State, had cottoned in on decentralizing power supply; and thought of innovations to supply Lagos power outside the national greed.  It was this same Obasanjo, as president, that scuttled the effort.  Talk of a dog in a manger!

    Yet, his own so-called reforms led to nothing but power deforms, which Babatunde Raji  Fashola, SAN, incidentally another former Lagos governor but now Power, Works and Housing minister, is trying so correct.

    This same Fashola, under this same Buhari he petulantly dismisses as “failure”, is virtually killing himself to do routine stuff — in power and roads — Obasanjo and co should have done, during his wasted presidential years.  Talk, indeed, is cheap!

    When next Obasanjo decides to go on his notorious emotive binge, of talking down others to cover his own vacuity, let him at least realize he is not addressing dummies.  Failure, my foot!

  • Herdsmen: Prospects amid governance failures

    The ongoing carnage and destruction of valuable properties in various parts of Nigeria occasioned by unending attacks unleashed by suspected herdsmen on innocent citizens calls for a more robust approach to governance in the country. Although the conflict between crop farmers and herdsmen in Nigeria which started largely due to dwindling natural resources is not new, it was however allowed to persist and fester by the indolence, indifference, and negligence on the part of successive governments, and made even worse by the present administration. It was reported that between 2013 and the end of January, about 2000 lives were lost in farmers/herdsmen clashes in Benue State alone. According to reports by Amnesty International, 549 people were killed across 14 states of Nigeria in 2017, while in the month of January alone, about 168 were killed. In all these, thousands sustained various degrees of injury, some have been maimed for life, tens of thousands have been displaced, properties worth billions of naira have been lost, and livelihoods and economies disrupted. The enormity of these losses can better be imagined than quantified or described. Even more worrisome is the fact that not only have the killings continued unabated, but we now have a largely polarised citizenry and a full blown security problem of crises proportions in our hands which is capable of threatening our very existence as a nation.

    At the heart of the matter is a combination of mediocre management of governance issues on one hand, and the unwillingness on the part of a group in the society to embrace progressive and innovative change on the other. Statements credited to officials of Miyetti Allah Cattle Breeders Association of Nigeria, (whose membership is predominantly Fulani) following the new year killings in Benue State clearly betrayed the driving force behind the genocidal aggression of the herders in various parts of the country as business and cultural interest. The national president of the group, Alhaji Bello Abdulahi Badejo, was reported in several leading national dailies to have blamed the killings in Benue State on the state’s anti-open grazing law which, according to him “…is clearly against the cultural interest and business nature of a Fulani man…who is more concerned about the survival of his cattle.” He was further quoted to have said that: “A Fulani man will always want to be on the move, to look for greener pastures and water for his animals anywhere and everywhere, as guaranteed by the constitution. But when you look at the law in Benue, it is clearly dissonant to our interest and survival as Fulani people…”

    No doubt, this is the crux of the matter; a feeling of insecurity.

    Much as I sympathise with the group on their fears of threat to the survival of their people, it may be useful to caution here that resorting to killing, maiming, and destruction of farms and properties belonging to others and expecting them to be cowed to submission is hardly a reasonable and acceptable way to survive in the 21st century. People ought not to allow their insecurities to get the better of them. More worrisome is the fact that in the face of the continued killings, officials of Miyetti Allah have neither shown sympathy for the dead and their families, nor remorse for the heinous crimes committed by people who are obviously pursuing the interests of their organisation. Rather, they are reported to be dishing out threats and conditions and insisting that those conditions must be met if peace is to return to the land. These include the repeal of the Benue anti-open grazing law, and the provision of or restoration of grazing routes. The threat was extended to neighbouring Taraba State where similar legislation was passed.

    Given the challenges thrown up by population growth, ever increasing demand for land for various developmental purposes, environmental and land degradation, as well as climate change, nomadic method of livestock farming is neither sustainable nor practicable in present day Nigeria. It is therefore time for our Fulani brothers to be persuaded to embrace change and adopt new and modern methods of livestock farming. Culture is not static but rather dynamic, and evolves as changing times and civilisations demand.

    Understandably, change can be quite challenging for most human beings, but we must note that it is inevitable. Writers have identified two types of change. The first is the expected change which is usually the type we planned for and have had time to think about and prepare for. And the second is the unexpected change which is the type usually forced upon us by events, circumstances or natural phenomena. The unexpected natural change is a part of life because no condition is permanent and nothing in this material world lasts forever.

    In its handling of the current herdsmen imbroglio, the present administration at the centre has often been contradictory, wobbling and muddling, and has failed to demonstrate creativity, resourcefulness, and leadership in its approach. In early 2016, Audu Ogbeh, the Minister of Agriculture announced the intention of the federal government to import grass from Brazil as part of its efforts to improve the business of cattle production in the country, even while there was still a raging controversy over the “grazing reserve” bill at the National Assembly.  While that episode lasted, the minister flirted with the idea of keeping animals in paddocks and feedlots. His objective was to replace nomadic cattle rearing with modern intensive system of keeping livestock, having acknowledged the fact that cattle bred by nomadic method do not grow and perform optimally. In this respect, Ogbeh was spot on (though not with grass importation). With appropriate legislations and policy actions, this would have kept herdsmen and their cattle away from other people’s crop farms and private properties, which is the major trigger in the violent conflicts.

    In my opinion the challenge before us may appear daunting but it is not all gloom. Rather, it presents us a window of enormous opportunities to launch into greater heights in an agricultural subsector that has been largely ignored for too long. There are huge business opportunities inherent in the grazing livestock value chain which we have so far failed to tap into because we have not been able to embrace modernisation in cattle rearing. These range from commercial growing of pastures, production of various feeds (fodder), to numerous other opportunities that exist not only in the production, processing and marketing of beef and beef products, but also in the larger, more viable and lucrative area of dairy products such as milk, yoghurt, butter, cheese, etc. We can only optimally avail ourselves of the opportunities if we outlaw roaming of grazing animals and breed them in confined environments.

    Against this background, what is required is an entrepreneurial model which encourages crop farmers to go into the commercial cultivation of forage crops which are known to be highly nutritious and adapted to different climatic conditions, including hot and arid conditions. In other words, growing grass and legumes for sale to livestock farmers can be made to become a profitable business. This strategy will not only provide high quality food for our grazing animals, but also help to beat back the advancing desert as well as rebuild and restore waste lands, thus making them fruitful fields again. Several varieties of nutritious grasses and legumes which are tolerant to drought are now being successfully grown in parts of Africa and have gained popularity in recent times. They include alfalfa, brachiaria, foxtail, and several others. Alfalfa for example, often referred to as “the queen of forage” is a perennial legume that is high in minerals, vitamins, and protein, and can be harvested every 35 days. It is one of the most nutritious crops that can be utilized in any forage.

    Going forward, government and security agencies must first demonstrate willingness and capacity to arrest the gradual drift into anarchy, apprehend the rampaging killers and bring them to justice. At the same time, deliberate and concerted efforts should be made to calm frayed nerves and allay the fears of all concerned parties especially crop farming communities and cattle farmers. Government policies and actions must be seen to be just and fair to all, and must be of the greatest benefit to the greatest number of citizens, so as to build friendship and goodwill amongst groups.

    Then the federal government must synergise with various state governments to formulate and implement relevant legislations and policies that will effectively insulate crop farms from grazing animals by confining the latter in suitable locations where they can be properly fed and receive adequate care and veterinary services. Also, the governments should deploy livestock extension services to the cattle farmers and train herders on modern livestock farming methods. Furthermore government must be prepared to invest massively in irrigation projects or alternatively, create the enabling environment for the private sector to do so profitably, particularly in the northern parts of the country. Lastly it may be pertinent here to emphasise the need for the federal and state governments to collaboratively fashion out a more robust approach to land use management in the country.

     

    • Igunbor, writes from Watford, United Kingdom.
  • More than passes and failures

    More than passes and failures

    •The NECO results, just released, show encouraging and depressing trends

    The release of the National Examinations Council (NECO) November/December examination results, 38 days after its last paper was written, is a welcome development, which Prof. Charles Uwakwe, the NECO registrar, has adduced to “improved logistics” to aid fast service delivery.

    The examinations body has earned commendation for this feat. But it must also know that speed, as desirable as it is, must be managed in such a way as not to compromise quality. Still, that the results have been released early enough for candidates needing them to seek admission into tertiary institutions is brilliant stroke of social responsiveness. That should strike a positive chord with millions of Nigerian youths.

    That 56.79 per cent of the candidates secured five credits and above, including English Language and Mathematics, is not spectacular, for it is just 57 from every 100 candidates that wrote the examination. But it is much better than those years when barely a third made that cut.

    Even much more interesting, almost eight out of every 10 (77.58 per cent) had five credits with or without English and Mathematics; slightly above the same figure (78.82 per cent) had credit and above in Mathematics, while seven out of every 10 (70 per cent) had credit and above in English.

    All these, bunched together, show a heart-warming trend: competence at that level, in English and Mathematics, appears to be improving — even Mathematics (vital in science education) more than English (the national official mode of expression and communication).

    If this trend holds over the years, and if it is not a function of examination malpractices and allied rigged processes, the general plummet in the standard of education might just be lifting. That would be great news indeed.

    But if there are brilliant spots, there are dodgy spots too. One, the regional divide in examination passes and failures. According to the News Agency of Nigeria (NAN), Ogun State topped the list of performers with 91.42 per cent of its candidates (nine out of every 10) clinching five credits and above. If the Ogun candidates’ feat includes English and Mathematics — which was not clear from the provided statistics — they would have chalked an excellent result indeed.

    Closely following Ogun, in the NECO hall of excellence, are Akwa Ibom (87.97 per cent with five credits and above) and Oyo (86.97 per cent).  While Ibadan, the Oyo State capital was the bastion of the old West’s radical education reforms, perhaps Akwa Ibom is beginning to enjoy the educational investments of the Godswill Akpabio years. Both states have a lot to cheer.

    But it is sad, from a national strategic point of view, that the laggards from the results, are tilted towards the northern states. That should be bad national news and should serve as impetus for the northern governors to ring up their education policies to halt this depressing trend.

    Where to start is play less politics with education. The situation in Kaduna comes to mind.  Unwholesome teachers facing possible sack — at least according to the state government’s allegation — are up in arms, backed by organised Labour, to save their jobs.

    Labour might be right to fight to protect the job of its members. But they are certainly wrong to insist unfit teachers stay at their posts, if the North must stem its parlous educational records. For the sake of the present and future generations, it’s time to take drastic actions to save the situation — and the Labour politicisation of the Kaduna case is certainly not the way to salvage it.

    But while general stats in success and failure follow a regional pattern, not so the cheating pattern, which seems a pan-Nigeria one.

    Again, quoting NAN, Plateau topped the table of cheats, with 943 cases (21.31 per cent); followed by Oyo, with 884 cases (19.97 per cent); and Adamawa, with 464 cases (10.48 per cent).

    This level of cheats is a blight on Oyo’s otherwise brilliant showing in the NECO examination, for the question would always arise: how much of its success was real and how much of it was cooked. But it must be noted that statistics, being trends, have a way of imposing finalities that are not there in real life.

    Nevertheless, this seeming pan-Nigeria pattern of examination cheating should worry everyone, for the bane of contemporary Nigeria is clearly brilliance without character. That would explain why even the best trained and most sophisticated would enter public office but exit as a common rogue, who cannot defend the source of his or her livelihood.

    So, even much more than consolidating on the successes recorded at the NECO examination, the authorities should crack down on examination malpractices. It is better to fail with honour than cheat to success. A national ethics code must be built on that very basis. It is the fundament of a honest and productive national ethos.

  • ‘Knowledge acquisition panacea to entrepreneurial failures’

    Knowledge acquisition, not finance, is the panacea to problems bedevilling entrepreneurs.

    This was the view of  stakeholders at the first edition of the Youth Entrepreneurship Summit (YES), organised by Palm3 Strategy, in Lagos.

    The  theme was “Nigeria beyond oil: Advancing SMMEs development through entrepreneurship social media”.

    The consensus of participants  was that acquisition of the right knowledge will go a long way in ensuring the success of young entrepreneurs.

    The Acting Chief Executive Officer, Bank of Industry (BoI), Mr Waheed Olagunju, said though most entrepreneurs complained of lack of finance in starting up, investigations revealed that most start-ups do not have the requisite knowledge to manage their businesses.

    He said BoI would tackle youth unemployment through various grants –  Youth Entrepreneurship Support (YES) grant to young graduates and Graduate Entrepreneurship Funds (GEF) for youth corps members – to assist youths with good business ideas to start their business.

    Nigerian Export Promotion Council (NEPC) Chief Executive Officer Mr Olusegun Awolowo said the agency has various initiatives to assist young entrepreneurs to key into government policies on exportation. He, however, regretted that lack of information about the activities of NEPC explained why many Nigerian products were not being exported.

    Olam Nigeria Vice President, Ade Adefeko, said for Nigeria to diversify beyond oil, the nexus between agriculture and technology, with the  active participation of the youth, should be pursued as that would promote agriculture.

    Similarly, the Managing Director, Palm3 Strategy, Mr Ndiana Mattew, said YES was borne out of lack of mentorship for budding entrepreneurs without connections or a formal business school, a level playing field on market entry, obstacles to finance and lack of knowledge/skill or its accessibility by the average the youth.

  • APC chair: we won’t accept PDP failures

    APC chair: we won’t accept PDP failures

    The Enugu State chapter of the All Progressives Congress (APC) has said it will not accept politicians the Peoples Democratic Party (PDP) rejected.

    The party noted that such politicians only want to embrace the opposition party as a last resort.

    It said: “Those who want to join us from the PDP should do that now, by registering officially. This is because there will be no room for those who would want to come at injury time, after being rejected by the PDP.”

    APC Chairman Dr. Ben Nwoye addressed reporters at the end of a meeting between the state Exco members, youths and zonal women leaders.

    The chairman said APC would not be a dumping ground for rejected PDP members.

    He urged PDP members proposing to use APC as their last resort in 2015 to look elsewhere or pitch tent with the opposition party now that there were available brooms at the party’s secretariat.

    Nwoye warned that it would no longer be business as usual for those who lose primary elections and defect to the opposition to realise their political ambitions.

    The chairman said APC was doing well in the 17 local government areas and the three senatorial districts ahead of the 2015 general elections.

    The local government branches of the party, he said, had recorded a large turnout in the registration of new members who believe in APC’s ideology and agenda.

    Nwoye assured the people of Nsukka, where ACP has zoned its 2015 governorship ticket to, that its candidate would emerge through a transparent process, “because our party has zero tolerance for imposition”.

    Also, the Southeast women leaders of the APC have passed a vote of confidence in the national leadership of the party and its zonal leader, Mrs. Helen Ojukwu.

    In a communique by the women’s leaders in the five states – Enugu, Ebonyi, Anambra, Abia and Imo – the women hinted that their meetings would henceforth be in Enugu, being the central state of the Igbo.

  • 21 years of VAT:Successes, failures

    21 years of VAT:Successes, failures

    It’s 21 years since Value Added Tax (VAT) administration became fully operational in the country under the charge of the Federal Inland Revenue Service (FIRS). Nduka Chiejina, Assistant Editor, takes a critical look at the problems and prospects thus far.

    THE Value Added Tax (VAT) became fully operational in Nigeria over two decades ago, 21 years to be precise. 21 years after, it has taken on a life of its own, as it is a popular culture being observed by all and sundry, including corporate organisations and individuals.

    But what really is a VAT?

    Experts who should know offer plausible explanation.

    VAT, according to Wale Adio, a tax expert, “Is a tax on spending. The tax is borne by the final consumer of goods and services because it is included in the price paid. The tax is at a flat rate of five per cent collected on behalf of the federal government by businesses and organisations which have registered with the Federal Inland Revenue Services (FIRS) for VAT purposes.”

    Expatiating, Adio said: “A business or organisation which has registered for VAT is classified as a “registered person.” Such persons will pay five per cent VAT on goods and services purchases but can claim credit for this tax (called input tax) when sold, five per cent VAT (called output tax) is included in the price of all goods and services supplied by registered persons. The registered person has to make regular VAT returns and either pays to, or receives from the FIRS, the difference of the input tax and the output tax.”

    VAT returns (and payments) are normally made monthly to the FIRS Integrated Tax Office on or before 21st day of the month next following that in which the supply was made. To claim a credit for input tax, a registered person must hold a “Tax Invoice.” Records and accounts have to be kept; FIRS Integrated Tax Offices provides free information and advisory services to help you with VAT.

    Road to VAT

    From available information, sourced from FIRS website, The Nation gathered that the idea of introducing VAT in Nigeria came from the Study Group set up by the federal government in 1991 to review the entire Tax system. VAT was proposed and a Committee was set up to carry out feasibility studies on its implementation. In January, 1993, the federal government agreed to introduce VAT by the middle of the year. It was later shifted to 1st September, 1993 by which time the relevant legislation would have been made and proper ground work done. VAT came as a replacement to the existing Sales Tax which had been in operation under federal government legislated Decree No.7 of 1986 but was operated on the basis of residence.

    Besides, the rationale behind replacing Sales Tax with Value Added Tax was informed by a number of factors and considerations, notably: The base of the Sales Tax in Nigeria as operated under Decree No. 7 of 1986 was narrow. It covered only nine categories of goods plus sales and services in registered hotels, motels and similar establishments. The narrow base of the tax negated the fundamental principle of consumption tax which by nature is expected to cut across all consumable goods and services.

    VAT base is broader and includes most professional services and banking transactions which are high profit-generating sectors. Only locally manufactured goods were targeted by the Sales Tax Decree of 1986, although this might not have been the intention of the law. VAT is neutral in this regard. Under VAT, a considerable part of the tax to be realised is from imported goods. This means that under the new VAT, locally manufactured goods will not be placed at a disadvantage relative to imports. Since VAT is based on the general consumption behaviour of the people, the expected high yield from it will boost the fortunes of the state governments with minimum resistance from the payers of the tax.

    VAT as a global phenomenon

    Value Added Tax is a consumption tax that has been embraced by many countries world- wide. Because it is a consumption tax, it is relatively easy to administer and difficult to evade. The yield from VAT is a fairly accurate measurement of the growth of an economy since purchasing power (which determines yield) increases with economic growth.

    VAT is considered to be a self- assessment tax that is paid when returns are being rendered. In-built in the new tax is the refund or credit mechanism which eliminates the cascading effect that is a feature of the retail sales tax. The input-output tax mechanism in VAT also makes it self-policing. In essence, it is the Output Tax less Input Tax that constitutes the VAT payable. It is the equivalent of the VAT paid by the final consumer of the product that will be collected by the government. Although VAT is a multiple stage tax, it has a single effect and does not add more than the specified rate to the consumer price no matter the number of stages at which the tax is paid.

    VAT administration

    in Nigeria

    The VAT system in Nigeria is administered by the Federal Inland Revenue Service (FIRS). The FIRS Integrated Tax Offices (ITO) is located throughout the federation. Although VAT is administered centrally by the federal government by using the existing tax machinery of the FIRS in close co-operation with the Nigeria Customs Service (NCS) and the State Internal Revenue Services (SIRS), the net proceeds from the tax accrue solely to the state governments after making an allowance of 20% to cover the cost of administration. In effect, the state governments will benefit to the tune of 80% of the entire VAT collection.

    The implementation of VAT officially commenced on the 1st September, 1993. However, registered persons were given the whole of September to adjust their accounts, particularly the incorporation of VAT information in their general ledgers, in order to comply with the requirements of the tax. This meant that all registered persons were to start issuing VAT invoices to their customers as from 1st October, 1993.

    VATable goods and services

    At the moment, there are seventeen categories of goods and twenty four categories of services that are VATable. The goods and services exempted are as follows: medical and pharmaceutical products; basic food items; books and educational materials; newspapers and magazines; baby products; commercial vehicles and their spare parts, and agricultural equipments and products and veterinary medicine.

    Besides, services exempted include but not limited to the following: medical services; services rendered by Community Banks, Peoples Banks and Mortgage Institutions; and plays and performances conducted by educational institutions as part of learning.

    A VATable person is one who trades in VATable goods and services for a consideration. Every VATable person has an obligation to register for VAT payment. The registration is to cover all the business activities of the VATable person. The person can be a sole proprietor (e.g. a trader), a professional (e.g. a lawyer) a partnership, a Limited Liability Company; a Club or Association or a Charity. A resident of Nigeria, who performs services outside Nigeria, needs to register with the Integrated Tax Office (ITO).

    VAT offences and penalties

    There are various offences with very stiff penalties under the VAT system. Some of the offences are: failure to register; failure to furnish required information; making false claims; obstructing VAT inspectors; and failure to submit returns.

    These offences carry penalties ranging from fines of up to N10,000 to various terms of imprisonment. In some cases, the fines or penalties depend on the amount of evasion involved. The law is even stricter in dealing with officers of the Board. Any officer of the Board who aids or abets the commission of any of the offences under the VAT law will be liable to a fine of N50,000.00 and/or imprisonment of five years.

    A salient feature of the VAT system is its ability and promptness in making refunds as and when due. Refund here does not necessarily mean direct cash payment. The Decree permits a taxable person to claim refund of the excess tax, in the event of input tax exceeding output tax. Refund is also available for VAT paid on zero-rated goods and services. The FIRS is empowered to set the guidelines and requirements for VAT refund from time to time.

    Tax defaulters in

    government circles

    To analysts, the FIRS is doing a yeoman’s job of getting everybody into the tax net. But, regrettably, some quasi-governmental agencies have been known to act in the breach when it comes to fulfilling their civic obligation, that is paying taxes as at when due.

    To address this lacuna, in 2003, the FIRS gave notice to all federal and state government ministries, departments, agencies, local government councils of the federation, corporate organisations and all other collecting agents on the mandatory direct e-payment of VAT to FIRS accounts.

    The service noted that “over the years, huge arrears of taxes accumulated by federal, states, local government councils and all other collecting agents all over the country have impacted negatively on the nation’s revenue profile. It is also a known fact that the nation needs a sustained flow of revenue for her development projects.”

    All state government ministries, departments, agencies and local government councils were then required to ensure that all contractors under the jurisdiction of FIRS provide their Tax Identification Number (TIN) before engaging in any transaction with such entities and in the same vein, all staff of state MDAs and local government councils under the jurisdiction of FIRS must obtain TIN to facilitate the remittances of the relevant taxes.

    Last year, the Federal Inland Revenue Service (FIRS) commenced the implementation of automated Value Added Tax (VAT) and Withholding Tax deductions at source for the aviation industry beginning from September 2013.

    Making this known recently was the Acting Executive Chairman of FIRS, Alhaji Kabir Mashi. He spoke at a one-day sensitisation workshop for FIRS Field Officers, Collection Agents and Banks.

    Mashi also listed the automation of all FIRS receipt processes, increase in the number of payment channels as well as the implementation of the Integrated Tax Administration System (ITAS) as among steps taken by FIRS to ensure increase tax revenue collection for the government.

    He also disclosed that FIRS is collaborating with the commercial banks to make the Taxpayer Identification Number (TIN) mandatory for opening of an account and all transaction with the individuals and corporate bodies.

    Mashi said: “We have extended invitations to our collecting agents for their magnanimity in collecting and remitting taxes on behalf of the Service. Businesses now know that there is no hiding place for them anymore. Yes they can run, but they can no longer hide.”

    According to him, efficient revenue management entails generating the maximum level of revenue without leakages, prompt delivery of quality services to the taxpaying public and high level of transparency and accountability.

    He said while part of the ITAS project focuses on taxpayers registration using TIN, the filing and registration and returns processes, payment processing was being addressed by the collection automation project.

    The FIRS boss explained that the FIRS has “adequate mechanisms for proper analysis and monitoring of these initiatives to enable us address attendant challenges as they occur. The success or otherwise of some of the above initiatives depended on the level of cooperation of agencies like the Nigeria Customs Service, Central Bank of Nigeria, Nigeria Civil Aviation Authority, Office of the Accountant General of the Federation.”

    Mashi noted that the Service at inception focused on efficiency in collection, assessment and accounting, adding that: “While the primary mandate remained unchanged, a lot has since changed from process reengineering to process automation through our modernisation programme.”

    He assured of the Service commitment to keeping its mission statement to operate a transparent and efficient tax system that optimises tax revenue collection and voluntary compliance.

    Between September and December 2013, when the automation process started, about N600 billion has been realised from the aviation industry alone, a development which the FIRS wants to harness.

    It was also revealed that another automated tax capturing platform has been introduced by the FIRS for Ministries, Departments and Agencies (MDAs) for the purpose of recouping proceeds from Withholding Tax and VAT originally meant for the FIRS but which many MDAs have had denied the service.

    A source who spoke with The Nation in confidence said the Federal Executive Council (FEC) had approved the use of the automated platform to capture Withholding tax and VAT proceeds from MDAs giving the large amount of money involved and the complexity of the exercise. To this end, a Canadian company has been engaged to assist the FIRS in this effort.

    So far it was revealed that about 15 to 20 MDAs have so far been registered on the platform and more will be registered in the New Year. A the height of the financial crisis that hit the Federation Account Allocation Committee (FAAC) it was revealed that one of the reasons the FAAC was resorting to drawing down the Excess Crude Account (ECA) was because revenue generating agencies like the FIRS and the Nigeria Customs Service (NCS) were not making enough money as expected to fund the federation account without recourse to the ECA.

    This development is was learnt is what compelled the federal government to mandate both revenue generating agencies to ramp up their revenue generating drives and feed the federation account with more cash.