It’s been 22 years since Nigeria started democratic dispensation, but none of the nation’s legislative assemblies has a tax committee, Muhammad Mamman Nami, the Executive Chairman, Federal Inland Revenue Service (FIRS) has said.
Nami, who stated this in Abuja, Wednesday, during the opening session of the 7th IGR Peer Learning Event, with the theme: Setting the Social Minimum through a Tax for Service Programme, described the omission as surprising.
“Your excellences need to adopt right tax policies that will ensure adequate funding for the much needed social-economic infrastructures. Equally, it is important for governments, at all levels, to come together to fight tax evasion, touting, etc. which are negatively impacting tax revenue.
“Your excellences and Honourable Ministers, 22years since Nigeria started this democratic dispensation, none of our legislative assemblies has a tax committee; it is surprising. We must see taxation in its proper context such that all arms of government (legislative, executive, and judiciary) should accord it due attention”.
The FIRS boss warned that going forward, taxation remains the only sustainable source of revenue as crude oil, Nigeria’s main source of revenue is no longer sustainable.
Nami noted that the market for fossil fuel continues to deplete due to complications arising from the impact of the COVID-19 pandemic, the shift from fossil fuel to other cleaner sources of energy, rising cost of exploration, banditry, and oil theft, among others.
Also speaking Dr. Kayode Fayemi, Chairman Nigeria Governors’Forum (NGF) has said the Internally Generated Revenues (IGR) of state governments in Nigeria recorded annual growth of 12% from NGN687 billion in 2015 to NGN1.21 trillion by 2020.
The Ekiti State Governor noted that the growth achieved within the period under review as a result of the domestication of various reforms advocated by the annual IGR Peer Learning Event organized by the NGF Secretariat.
According to him, recommendations from the annual event provide State Governors, with invaluable guidance on reform prioritisation year-on-year, stressing that the reforms comprise of legal revisions, policy directives, institutional restructuring, and technological innovations which have improved tax administrative processes and procedures in various states.
“Recommendations from this annual event continue to provide us, State Governors, with invaluable guidance on reform prioritisation year-on-year. Over the last six years domesticating various reforms advocated by this platform, States have recorded a compound annual growth of 12% from NGN687 billion in 2015 to NGN1.21 trillion by 2020.
“These reforms comprise of legal revisions, policy directives, institutional restructuring, and technological innovations to improve tax administrative processes and procedures. Still, the marginal growth in the IGR of States recorded year-on-year from 2016 peaked in 2019 and recorded a decline of NGN43.15 billion (3.4%) for 2020” he said.
Represented by the Director-General of NGF, Ashishana Bayo Okauru, the Chairman said that less than 5% of Nigeria’s population is covered by any form of prepayment mechanism for healthcare.
According to him, high out-of-pocket payments for healthcare have been proven to be highly regressive and a major barrier to seeking treatment for many in the country.
He charged participants comprising states’ Commissioners of Finance and their Health counterparts to provide NGF implementable plan to deliver better healthcare to the people.
“As you subject the year-long research work done by the NGF Secretariat to a constructive discourse, bringing to bear your individual experiences and contextual State peculiarities, it is our expectation as a Forum that you avail us a fit for purpose implementation plan to run with, improve States’ IGR and deliver better healthcare to the people”.
Earlier, speaking in his capacity as the NGF Director-General, Okauru, explained that the event is organized annually by the NGF Secretariat to bring to focus policy issues around domestic financing in the country from a sub-national perspective.
He noted that this year’s event is unique in the sense that it brings two NGF Secretariat workstreams together — combining both its work in IGR and primary healthcare.
Okauru said it is the first time, the heads of states’ tax authorities and insurance agencies are brought in one room to discuss how to improve health insurance for the majority of the citizenry.
“By the end of the day, I hope that we will be able to make these investments in resources and time further. We plan to use the evidence from both the policy research and this event to mobilise support for states that are willing to take up the programme” he said.
By Chidi Ugwu,
Independent Newspaper