Presidential Committee Proposes Overhaul of Revenue Collection Process for Nigerian Government Agencies.
In a groundbreaking proposal, the Presidential Committee on Tax Policy and Fiscal Reforms has recommended a significant restructuring of revenue collection processes within the Nigerian government.
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If implemented, the proposal would see the Nigeria Customs Service, Nigeria Ports Authority, Nigerian Postal Service, and 60 other Ministries, Departments, and Agencies (MDAs) ceasing to collect revenue on behalf of the Federal Government.
The proposed plan aims to centralize revenue collection under the authority of the Federal Inland Revenue Service (FIRS). This move is anticipated to result in the collection of trillions of revenue that was previously gathered or collected by the various agencies being consolidated and streamlined through the FIRS.
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The Chairman of the committee, Taiwo Oyedele, who previously held positions at PriceWaterhouseCoopers as a Fiscal Policy Partner and Africa Tax Leader, emphasized that many of these agencies were originally not established to directly collect revenue. Oyedele explained, “It can be your revenue and someone else can collect it for you. There will be more transparency because you can see what is being collected and is accounted for properly.”
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The committee’s rationale behind this recommendation is to enhance efficiency in revenue collection, reduce duplication of efforts, and enable the MDAs to focus on their primary functions of facilitating economic growth. The proposal has garnered support from various quarters, including business leaders and economic experts, who view it as a means of boosting transparency and accountability.
However, some stakeholders have expressed concerns about the practicality and potential pushback from affected agencies. Olusola Obadimu, Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, acknowledged the merit of the idea but cautioned that its execution might require careful consideration.
Gabriel Idahosa, Deputy-President of the Lagos Chamber of Commerce and Industry, pointed out the potential for resistance from agencies that have been collecting revenue traditionally. He stressed the need for a thorough analysis before implementing such a significant change.
While the proposal is generating discussions and debates, its supporters believe that centralizing revenue collection could lead to a more streamlined and effective process, promoting economic growth and reducing the complexities associated with multiple agencies collecting revenue. As the Nigerian government weighs the potential benefits against the challenges, the proposal’s fate remains to be seen.
The following Nigerian government agencies are among those that would be affected by the proposed overhaul of revenue collection:
1. Nigeria Customs Service
2. Nigeria Ports Authority
3. Nigerian Postal Service
4. Federal Airports Authority of Nigeria
5. Nigeria Deposit Insurance Corporation
6. Nigerian Meteorological Agency
7. National Agency for Food and Drug Administration and Control
8. Federal Road Safety Corps
9. Standards Organisation of Nigeria
10. Nigerian Airspace Management Agency
11. Bank of Agriculture
12. Nigerian Bulk Electricity Trading
13. Tertiary Education Trust Fund
14. Federal Radio Corporation of Nigeria
15. Nigerian Railway Corporation
16. Federal Reporting Council of Nigeria
17. Nigerian Maritime Administration and Safety Agency
18. Corporate Affairs Commission
19. Nigeria Civil Aviation Authority
20. National Broadcasting Commission
21. Joint Admission Matriculation Board
22. National Automotive Design and Development Council
23. Federal Mortgage Bank of Nigeria
24. Nigerian Upstream Petroleum Regulatory Commission (formerly Department of Petroleum Resources)
25. Nigerian Communications Commission
These agencies, among others, have historically played a role in revenue collection for the Federal Government. The proposed overhaul aims to shift revenue collection responsibilities from these agencies to the Federal Inland Revenue Service (FIRS) in order to improve efficiency, transparency, and accountability in the revenue collection process.
Editor’s Note: Other agencies to be affected will be added to the list as soon as they are available.
