From the leadership era of Omoigui Ifueko, the immediate past chairman of Federal Inland Revenue Service (FIRS) to the current interim leadership of the Acting Executive Chairman Alhaji Kabir Mashi, the FIRS has transformed from a suckling brand into a major money spinning brand for the government through institutional reforms.  Today, you will be right to call the service a cash cow for the nation’s economy, and you won’t be far from the truth.

Granted autonomy in 2007 through the enactment of the Federal Inland Revenue Service Establishment Act (2007,) the agency is responsible for tax administration in the country. Prior to this autonomy, the Agency has undergone several reforms but was not able to achieve its present feat.

Going by recent figures, the agency through its contributions to the national economy has become the second highest revenue generator for government after the Nigerian National Petroleum Company (NNPC); this was previously unimagined.

In 2009, the FIRS turned in to the national coffers revenue of N2.19 trillion and in 2010, a total of N2.83 trillion was achieved while in 2011, it generated N4.6 trillion. The agency also exceeded N3.7 trillion target set for it by the government in the year 2012.

Through sheer determination and professional tactics, FIRS have kept the revenue profile of the   non-oil sector on a steady increase; simply an unprecedented achievement.  In 2008, companies’ income tax grew from 130.8billion Naira to N420.6 billion. In addition, Value Added Tax grew from N162.3 billion to N401.7billion, while Education tax revenue increased from N17.1 billion to N59.5 billion.

Despite hitches encountered due to tax waivers for some investors, the performance of the agency bodes well for both the leadership and subordinates of the agency and this was recently acknowledged by the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo Iweala, during a visit to the FIRS headquarters in Abuja.  The minister who interacted with FIRS staff and Management on the need for a renewed revenue drive and the FIRS role in Nigeria’s bid to source more non-oil revenue said the FIRS as a professional institution has made her proud by the conduct of its staff and the institution’s attainments.

“I want to say that I’m quite proud of the FIRS. And the reason is that when I came in the first time as Minister of Finance in 2003, everywhere I went, people were complaining of so many issues about the Service. So we set out at that time to do something about it. Today, when I walk around, people have only praises for the service. Of course I get some complaints here and there.

These achievements recorded by the FIRS   would not have been possible without a visionary leadership and a motivated workforce. Though the agency is currently in search of a new helmsman following the retirement of its former boss Mrs. Ifueko Omoigui-Okauru, the current leadership of Kabiru Mashi has done remarkably well. Hence, efforts should be made to choose a successor who understands the industry well in order to improve on what the agency has achieved. Some have actually wondered aloud, “why not simply confirm Kabiru Mashi?” Unfortunately, the authorities seem to usually prefer ‘outsiders’ for the coveted leadership positions in key agency’s just as it has played out at the Central bank of Nigeria.

How Rebasing GDP Will Help Tax Collection, Nigerian Economy-Finance Minister.

Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala has stated that the rebasing of the Nigerian Gross Domestic Product (GDP) to over 500 billion dollars will help the nation’s economy and tax system in several ways.

According to the Minister, the rebasing has demonstrated that the Nigerian economy is much more diversified than earlier assumed.

The Minister who spoke at the Stakeholders Engagement Forum organised by the Federal Inland Revenue Service (FIRS) to engage key business leaders, said : “What the rebasing has done is to demonstrate that Nigeria has much more diversified economy than we thought. Services is now 51 percent, up from 26 percent. Agric is now 33 percent from 22 percent. The movie sector that was 0.7 percent 10 years ago is now 1.2 percent. What I’m saying is that the Nigerian economy is evolving in terms of Service.”

She added that “Service is now one quarter of the GDP. The point we are making is that the rebasing has demonstrated the potentials in tax in a diversified economy base, though Nigeria is not doing as good as Kenya and South Africa in tax to GDP ratio”.

Okonjo-Iweala said the opportunity which the rebasing of the nation’s GDP offers is good as it challenges FIRS and the country to do better.

FIRS urges Taxpayers to pay Returns Before 30th June, Tells Banks to Remit Collections on Time

FIRS has urged taxpayers whose accounting year ended 31st of December, 2013 to pay their returns before the end of June this year.  The agency also used the medium to admonish banks to always remit their collections promptly into the designated accounts.The Acting Executive Chairman of FIRS, Alhaji Kabir Mashi made this call at the taxpayers sensitisation workshop where companies with 31st of December, 2013 as their accounting year-end, were told that they have up to 30th June, 2014, to file their returns.

The event which held at the Airport Hotel, Ikeja Lagos was organised by the Medium Tax Department of the FIRS. Mashi who was represented by the Director, Medium Tax Department, Mr. Peter Olayemi said FIRS frequently collaborates with its stakeholders because of the importance of each stakeholder in tax administration.

Mashi also thanked other tax professionals and tasked them on having the good of the nation at heart while they consult or plan taxes for their clients.

“You are at the middle of the affairs that is between FIRS and the taxpayers. Your timely advice in reminding your clients (taxpayers) of their obligations and letting them know the implications of non-compliance is key to the development of our tax system. We sincerely believe that as partners in progress, we can collectively work together to galvanise the economy by optimising the non-oil tax revenue through mutual understanding and collaboration”, Mashi said.