• Collects N720b more than 2016 collection
The Federal Inland Revenue Service (FIRS) collected N4.03trillion in 2017, the Chairman, Tunde Fowler, has said.
The FIRS chief, who spoke at the palace of the Oba of Lagos, Rilwan Akiolu, at the weekend, said the figure represented 82.38 per cent of government’s set target of N4.89 trillion for last year.
FIRS’ Head, Communications and Servicom Department, Wahab Gbadamosi, who made this known in a statement, yesterday, said FIRS’ collection was N720 billion (22 per cent) more than the 2016 total collection of N3.305 trillion., adding that the 2017 collection performance exceeded the previous by 78.75 per cent.
Fowler said: “With the support of the National Assembly and that of other stakeholders, FIRS was able to collect over N4trillion in 2017. This is an increase of over 20 per cent relative to our collection in 2016. We are hopeful that going forward, FIRS will be able to fund this country through taxation.”
He said when he was the Lagos Internal Revenue Service Executive Chairman, the Oba of Lagos played an important role in tax collection, saying apart from supporting LIRS morally, Oba Akiolu mandated the White cap chiefs to accompany LIRS officials to key markets and most parts of Lagos to sensitise the people on tax collection.
Fowler said: “We all recall that beginning from the second half of 2014, there has been a sustained decline in the global prices of oil. Oil revenue generated by FIRS in 2014, stood at N2.45trillion, while it attained N1.29trillion in 2015. In 2016, N1.16trillion was realised, and another another N1.52trillion came 2017, he stated.
He pointed out that the trend has adverse effects on the ability of oil dependent countries to meet their development objectives. He said for Nigeria, the decline in receipts from oil revenue and the concomitant decline in accruals to states from the Federation Account, have placed many states in financial difficulty to the point where basic obligations, such as the payment of employee wages, has become a perennial challenge. This is not the first time Nigeria will experience economic slow-down as a result of fluctuations in global oil prices.
Fowler said FIRS “hopes to ensure that it acts “differently this time around by looking beyond oil as the mainstay of our economy. By putting our hands together in contributing to our set goal, I am confident that we will surpass our past results and we’ll be well on our way to the future we hope to achieve.”
He said though collection increased by 20 per cent relative to 2016, the cost of collection went down to 2.49 per cent in 2017 relative to the 2.60 per cent cost of collection in 2016 and 2.62 in 2015, attributing the reducing collection cost to growing efficiency in Information, Communication and Technology (ICT) tools.
On his part, the Oba Akiolu, said 60 or 70 per cent of FIRS collection comes from Lagos, saying he would be sending a letter to Senate President, Bukola Saraki to draw his attention to the 1851 Treaty, which the colonial government signed with Oba Akintoye, that three per cent of all taxes collected in Lagos will go to the Oba, as well as two per cent of all exports will go to Oba Akintoye.
“While I am not asking that this be paid to me now, it could be paid to the Lagos State Government,” he said, stating that he lives by example as he pays as much as N350 million in tax every year.
Akiolu said what Nigeria needs is good governance that will deliver development to the people, stating that Lagos does not discriminate against anybody, “just as the state will not accept any injustice from any quarters.”
He enjoined Senators and members of the House of Reps to give President Mohammadu Buhari a chance and to support the anti-graft war by confirming the Economic and Financial Crimes Commission Chairman, Ibrahim Magu.
