Nigeria: Presidential Tax Reform Committee Selects FCT as Model for Tax Harmonisation

The Presidential Fiscal Policy and Tax Reform Committee has announced that the Federal Capital Territory (FCT) will serve as a model for implementing tax harmonisation across Nigeria.

This was disclosed by the committee’s chairman, Mr. Taiwo Oyedele, during a meeting in Abuja on Friday, focusing on revenue administration harmonisation. The event was organised by the FCT Internal Revenue Service (FCT-IRS) for the Area Council Chairmen of the FCT.

Mr. Oyedele clarified that tax harmonisation and simplification will not lead to a reduction in revenue, as some might assume, but will actually increase revenue generation.

“Harmonising and simplifying taxes, alongside ensuring equity and fairness in revenue administration, are critical areas of reform for our committee,” he stated.

He praised the efforts of the FCT-IRS in advancing tax harmonisation within the territory, advising both the FCT and other states to move away from unorthodox tax collection practices, particularly those conducted on highways, streets, and roads. He labelled these methods as unacceptable and urged for their elimination.

Mr. Oyedele emphasised the importance of leveraging technology to enhance transparency, reduce tax evasion, and eliminate revenue leakages. He also called for cooperation among all stakeholders to ensure the success of the tax harmonisation initiative, stressing the need for collective action to tackle the issue of multiple taxation in Nigeria.

He further noted that the FCT has the potential to become the leading region in terms of ease of doing business, but achieving this requires unified efforts.

The meeting saw participation from various FCT Area Council Chairmen, who discussed revenue harmonisation under the leadership of the FCT-IRS.

In his remarks, Mr. Michael Ango, the Acting Executive Chairman of the FCT-IRS, commended the Area Council Chairmen for their dedication and support in pushing forward the harmonisation agenda. He highlighted the commitment of the FCT Minister, Mr. Nyesom Wike, to significantly boost internally generated revenue to fund critical infrastructure and social services for residents of the territory.

Mr. Ango also stressed the importance of continuous engagement with stakeholders to ensure alignment in the tax harmonisation process. He assured that the FCT-IRS would implement a robust technology platform to enhance efficiency and transparency in revenue collection and management.

Mr. Ubokutom Nyah, the Mandate Secretary for Economic Planning, Revenue Generation, and Public-Private Partnerships at the FCT Administration, reiterated Minister Wike’s dedication to the harmonisation efforts. He also praised the FCT-IRS leadership for revitalising the initiative and urged the Area Council Chairmen to fully support the project for its success.

Alhaji Abdullahi Sabo, Chairman of Kuje Area Council, speaking on behalf of the councils, welcomed the selection of the FCT as a model for the country’s tax harmonisation efforts. He pledged the full support of the Area Council Chairmen for the successful implementation of the project, noting the trust in the FCT-IRS’s capacity to collect revenues on their behalf.

Sabo also highlighted the need for transparency and fairness in distributing the revenues collected, expressing optimism in the current leadership’s commitment to transforming the FCT. “We are fortunate to have a hardworking minister who, in just one year, has brought positive changes across the territory,” he added.