President Bola Tinubu’s Policy Advisory Council has proposed the merger of the Federal Inland Revenue Service, Nigerian Customs Service, and the Nigerian Maritime Administration and Safety Agency (NIMASA) into the Nigerian Revenue Service.
The merger, according to the council, will aid the collection of all direct and indirect taxes and levies on behalf of the federal government. The council therefore advised the passage of an emergency economic reform bill to grant the president special powers to drive the economic reform agenda.
The advisory council, put together by Mr Tinubu to support the delivery of sustainable and inclusive economic growth, consists of Tokunbo Abiru (chair), Yemi Cardoso, Sumaila Zubairu and Doris Anite, with KPMG listed as consultant.
The council recommended improved tax collection by restructuring and automating key revenue-generating agencies within the next three to four years and improve tax collection in the country.
One of the key suggestions is to identify, map, and consolidate the revenue collection function across crucial revenue generating agencies with the implementation of end-to-end automation for all taxes and levies, coupled with the utilisation of advanced big data analytics for improved tax collection.
To ensure transparency and accountability, the council called for the institutionalisation of independent revenue assurance and audit systems.
Multiple taxation has been a persistent challenge in the Nigerian economy, hampering compliance and burdening taxpayers, with multiplier effects on businesses and households. To address this issue, the council recommended the importance of tax harmonisation and mobilisation of political will to combat tax evasion.
In addition to improving existing tax collection mechanisms, the council also emphasised the need to expand the tax net by incentivising the informal sector to transition into the formal economy, design and implement balanced incentive-linked performance measures to drive the desired behaviour in revenue generating agencies.
It called for the implementation of a new social contract framework to encourage voluntary tax compliance, with emphasis on the need to aggressively grow Personal Income Tax (PIT) revenues at both the federal and sub-national levels.
Other recommendations on the economic reform agenda include the declaration of a state of emergency in revenue generation and national security, reform of the Central Bank of Nigeria, implementation of the civil service reform documented in the Oronsaye report.
Targets
In its economic reform roadmap, the council highlighted targets to be achieved in short (100 days), medium (12-18 months), and long (3-4 years) terms for the Tinubu administration.
The removal of fuel subsidy, transitioning to a unified forex rate window, and resolving the cash shortage situation were categorised as short-term targets.
ALSO READ: Court convicts ex-Customs chief Dikko’s lawyer of N1.1 billion fraud
For the medium term, the targets include addressing oil theft and pipeline vandalism and substantially growing oil and gas production; establishing a coordinating body for fiscal and monetary policy; optimising operating expenditure to reduce cost and leakages; and reforming the CBN’s operating model.
For the long term plans, the council recommended that the government should unlock the potential of the solid minerals sector; rationalise select government assets; deepen tax collection by restructuring and automating key revenue-generating agencies; reform the regulatory environment to enable business and investment; transform Nigeria to become Africa’s most efficient trading nation; grow non-oil export and manufacturing contribution to GDP; and become the “leading investment destination of choice among the MINT economies”.
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President Bola Tinubu’s Policy Advisory Council has proposed the merger of the Federal Inland Revenue Service, Nigerian Customs Service, and the Nigerian Maritime Administration and Safety Agency (NIMASA) into the Nigerian Revenue Service.
The merger, according to the council, will aid the collection of all direct and indirect taxes and levies on behalf of the federal government. The council therefore advised the passage of an emergency economic reform bill to grant the president special powers to drive the economic reform agenda.
The advisory council, put together by Mr Tinubu to support the delivery of sustainable and inclusive economic growth, consists of Tokunbo Abiru (chair), Yemi Cardoso, Sumaila Zubairu and Doris Anite, with KPMG listed as consultant.
The council recommended improved tax collection by restructuring and automating key revenue-generating agencies within the next three to four years and improve tax collection in the country.
One of the key suggestions is to identify, map, and consolidate the revenue collection function across crucial revenue generating agencies with the implementation of end-to-end automation for all taxes and levies, coupled with the utilisation of advanced big data analytics for improved tax collection.
To ensure transparency and accountability, the council called for the institutionalisation of independent revenue assurance and audit systems.
Multiple taxation has been a persistent challenge in the Nigerian economy, hampering compliance and burdening taxpayers, with multiplier effects on businesses and households. To address this issue, the council recommended the importance of tax harmonisation and mobilisation of political will to combat tax evasion.
In addition to improving existing tax collection mechanisms, the council also emphasised the need to expand the tax net by incentivising the informal sector to transition into the formal economy, design and implement balanced incentive-linked performance measures to drive the desired behaviour in revenue generating agencies.
It called for the implementation of a new social contract framework to encourage voluntary tax compliance, with emphasis on the need to aggressively grow Personal Income Tax (PIT) revenues at both the federal and sub-national levels.
Other recommendations on the economic reform agenda include the declaration of a state of emergency in revenue generation and national security, reform of the Central Bank of Nigeria, implementation of the civil service reform documented in the Oronsaye report.
Targets
In its economic reform roadmap, the council highlighted targets to be achieved in short (100 days), medium (12-18 months), and long (3-4 years) terms for the Tinubu administration.
The removal of fuel subsidy, transitioning to a unified forex rate window, and resolving the cash shortage situation were categorised as short-term targets.
ALSO READ: Court convicts ex-Customs chief Dikko’s lawyer of N1.1 billion fraud
For the medium term, the targets include addressing oil theft and pipeline vandalism and substantially growing oil and gas production; establishing a coordinating body for fiscal and monetary policy; optimising operating expenditure to reduce cost and leakages; and reforming the CBN’s operating model.
For the long term plans, the council recommended that the government should unlock the potential of the solid minerals sector; rationalise select government assets; deepen tax collection by restructuring and automating key revenue-generating agencies; reform the regulatory environment to enable business and investment; transform Nigeria to become Africa’s most efficient trading nation; grow non-oil export and manufacturing contribution to GDP; and become the “leading investment destination of choice among the MINT economies”.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999