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How we grew states’ IGR from N1.31trn to N1.67trn in 2 years –Govs

The Nigerian governors said they were able to grow the internally generated revenue (IGR) of states from N1. 31 trillion in 2019 to N1. 67 trillion in 2021 due to reform systems in tax administration.

 

Chairman of the Nigeria Governors’Forum(NGF) Dr Kayode Fayemi, at the 8th IGR Peer Learning Event and launch of the NGF public finance database, added that the share of IGR of total recurrent revenue also rose from 31 per cent in 2019 to 35 per cent in 2021.

 

Fayemi who doubles as Ekiti State Governor described it as good progress, and wants such to be sustained to advance the momentum of reforms, “consideringthedeclineinFAAC (Federal Allocation Account Committee) receipts.”

 

He stated that consensus reforms were focused on ending multiple taxation, adding that the reforms were aimed at professionalising and modernising the revenue services, embrace a taxpayer-centric culturethat eases taxpayer compliance and strengthens the existing social contract.

The governor, however, said state governments must occasionally respond to the fast-changing tax environment if they must stay ahead of evasion and avoidance tactics.

According to him, attention has to be paid to “the emerging dynamics surrounding private income in Nigeria today, including the devaluation effect of the rising inflation rate, structural transition in employment, businessdealingsandinvestments, driven by the evolution of technology.

 

“We recognise the need to support our internal revenue services and continue to empower them with the necessary political support and financial resources required for them to execute their mandate effectively. “Weremaincommittedto keeping this pact.

However, mutual accountability must exist- towhommuchisgiven much is expected.”

He noted that the governors should see ways to expandthetaxnetandimprove thetaxpayerdatabase, adding that this would require ending the proliferation of taxpayeridentificationnumbers and databases. “It is pertinent we harmonise; leveraging a unique identification number as is global best practice.

 

For us to achieve this, informationsharing between jurisdictions must be seamless, not only between the tiers of government but also inter and intra-state,” he added. Governor Fayemi called on the Joint Tax Board (JTB) tofind solutiontothisanomaly, adding that there must be improved transparency, not just around tax revenues but the entire treasury.

 

He stated that the database, which was launched at the occasion, would allow users to easily filter and analyse states’ fiscal data and information.

“We understand the need to build greater accountability, especially showing citizens the linkage between their taxes and service delivery.

 

“We are working with our revenue services and other MDAs to expand our tax-forservice initiatives in rewarding compliance while ensuring citizens know where we expend their taxes annually,” he noted, expressing the hope that their successors would continue the reforms

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