By 
The Federal government of Nigeria aims to enhance ease of doing business, transparency, and efficiency in revenue collection by reducing the number of taxes from 52 to 10 and renaming the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS). This strategic move is set to harmonize all tax collection activities under the Federal government.
Mr. Zacch Adedeji, President Tinubu’s special adviser on revenue, revealed these plans during the virtual TOPAZ 88 lecture series titled “Revenue Challenges and Opportunities in Nigeria Today.”
The issue of multiple taxations has been a significant challenge leading to reduced trust and compliance among taxpayers. The government seeks to ease the burden on citizens, aiming to tax “prosperity” and “fruits” rather than “seeds.”
Mr. Adedeji highlighted the upcoming formation of a tax committee, which will work on streamlining the taxes from the current 52 to 10. The complexity arising from numerous taxes has made compliance challenging, and this consolidation aims to address the issue.
Furthermore, the government plans to separate regulatory duties from revenue collection. Agencies responsible for tax collections will focus solely on revenue collection, while regulatory agencies will concentrate on their designated mandates. This will help in curtailing leakages and promoting efficient tax collection.
For example, Mr. Adedeji pointed out that the Nigerian Maritime Administration and Safety Agency (NIMASA) collect 3% freight duty, which is beyond their core duty of securing waterways. This revenue collection task should belong to the Nigerian Ports Authority to ensure clarity and prevent revenue loss.
Another significant step in enhancing efficiency and avoiding duplication is consolidating revenue collection into one government agency, the Nigeria Revenue Service. This will ensure that all taxes due to the government are collected through a single platform, streamlining the process and reducing confusion.
President Tinubu’s administration is dedicated to addressing concerns about multiple taxation and anti-investment inhibitions. To achieve this goal, a Presidential committee on fiscal policy and tax reforms has been established, with Mr. Taiwo Oyedele, PwC’s Africa tax leader, appointed as its chair.
Currently, businesses in Nigeria grapple with over 50 different taxes and levies, legal and illegal, which burdens the economy. The proposed tax streamlining and revenue collection reforms are expected to boost compliance and contribute to the country’s economic growth and development.
Comments