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TAXATION: Our Quota To Nation Building



Tax is a compulsory contribution to state revenue levied by the government on workers’ income and business profits, or added to the cost of some goods, services, and transactions. But for the sake of clarity, this piece will be focusing on tax as citizen’s obligation or contribution towards national development.

Nigeria like every other nation around the world needs revenue for the smooth running of governance and also to perform other civic operations. Although revenue can be gotten from various sources, one source that stands out the most in our contemporary time is revenue generated through taxation.

Every country has a particular agency or establishment saddled with the responsibility of tax administration aimed at delivering quality service to taxpayers in partnership with other stakeholders making taxation the pivot of national development. In Nigeria, the Federal Inland Revenue Service (FIRS) is the agency that oversees the timely collection of the various types of taxes which includes: the Company’s Income tax, Tertiary Education tax, Value Added tax, etc.

The FIRS after it’s rebirth in 2019 under the experienced leadership of its Executive Chairman, Muhammad Mamman Nami has become one agency of government working hard to fulfil it’s mandate and a major contributor to government coffers with its latest revenue generation of N10.1 trillion in the year 2022. The highest revenue ever collected in Nigeria’s history by a single agency of government, and of course the highest the Service has ever collected.

While the Federal Government of Nigeria is tagged with the responsibilities of providing security, welfare of citizens, promotion of political activities, provision and promotion of economic activities, provision of social amenities etc, citizens too have an obligation to fund these services through the payment of tax.Taxes paid by citizens is their obligation under the social contract where they contribute to the government to provide them with various services needed to better their lives.

Unfortunately some people do not see the need to pay taxes yet they want government to miraculously meet their needs by fulfilling its responsibilities. How can that be, where will the funds come from?

A nation with more tax payers who pay their tax as and at when due will naturally be ahead and more developed than those with less tax payers because it is through these taxes that government is able to undertake meaningful developmental projects such as constructions of roads and bridges, provision of medical facilities, building of schools and adequately equipping them; taxes are also used to fund many types of government programs that help the poor and less privileged in the society.

In Nigeria for example, the government at the center has embarked on series of milestone projects aided by revenue generated from taxes. Notable amongst these are the constructions of Loko – Oweto Bridge, Second Niger Bridge, Gombe-Kaltungo road, Abuja-Lokoja express way, Lagos-Ibadan dual carriage, Bonny-Bodo road and bridges, Sokoto-Tambuwal-Jega-Kontagora road, amongst others. It has also provided affordable medical care and cheap medical training for our doctors; built several Primary Health Care Centres across the country, built thousands of lecture halls, theatres and hostels in our tertiary education institutions and equipped them with the necessary infrastructure needed for effective learning.

Our tertiary institutions of learning is a major benefactor of tax collected through education tax. The Tertiary Education tax is 2.5% of the assessable profit of companies operating in Nigeria.

The education tax is a tax contribution made from profits of companies in Nigeria collected by the FIRS on behalf of the Tertiary Education Trust Fund (TEFUND) which in turn disburses it to the relevant public tertiary institution. Over the years, this has translated to the building and equipping of physical infrastructure, staff development and aided research. In light of this, TETFUND has disbursed over 2 trillion Naira to several tertiary institutions in Nigeria.

However, for more people to be encouraged in payment of taxes, government at all levels needs to be seen judiciously using the funds at its disposal to bring about development in any and all forms, thereby providing value for tax monies collected. It is one thing to pay taxes and it is another thing for the taxes to be used for the purpose for which it was collected.

This cannot be better said than in the manner Muhammad Nami puts it. While appealing to the three tiers of government, he advises them to continue to use the funds generated by the FIRS in critical sector of the economy so that they are able to give back value to tax payers as far as their money is concerned. He adds that global civilization is as a result of judicious use of taxes by government officials across the world.

Every one desires a good life, we crave for a better Nigeria where everything works. In truth, every citizen deserves it but without funds, the government no matter how willing it may be will be handicapped in living up to its responsibilities and making a significant change in the system.

Therefore, citizens must recognise that they are responsible for the building of their country’s civilisation through the taxes they pay.

Whether as a public office holder, a business owner or a simple patriotic citizen of Nigeria, we owe it as a duty to pay our taxes. Together we can build our nation and take it to greater heights through this little quota called tax.


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“Nigeria College of Taxation and Fiscal Studies” Bill Passes Second Reading



A bill for an Act to establish the Nigeria College of Taxation and Fiscal Studies passed its Second Reading last week at the Senate.

The presentation of the Bill was made by Senator Abdullahi Aliyu Sabi CON on the floor of the Senate Tuesday last week, where he noted that the institution, if established would provide professional and academic training as well as certification for tax administrators, tax practitioners and tax professionals across the country.

In his presentation, Senator Sabi, who represents Niger North Senatorial District of Niger State stated that the College had become necessary given the important role that taxation is playing in the nation’s economy, and that this institution would help formulate and draft tax policy for the country while addressing human capital gaps in the country’s tax industry.

“It is becoming increasingly clear that diversifying the sources of government revenue to focus on sustainable sources is inevitable. This diversification puts taxation at the centre of the revenue mobilization discussion; the attainment of this laudable objective would require tax experts who have been properly and adequately schooled to formulate tax policy, draft and interpret tax legislation, carry on private tax practice, and administer taxation in the modern era.

“In view of the constant shift in the social, technological and business environment, with direct impact on the tax system, it is is important to have skills, competence, and adaptable personnel to man the tax system. There must be a conscious development of the field of taxation and fiscal policies in Nigeria to awake the society on the importance of taxation as a sine qua non to our development.

“Nigeria must go beyond the mere inclusion of taxation in the curriculum of educational institutions; instead the country must establish a modern system that facilitates the study of taxation via a well laid out academic curriculum, guided and focused by practical realities of Nigerian taxation and the revenue ecosystem,” he noted.

Senator Sabi further emphasised that the College would help in tackling the issue of lack of sufficient capacity of tax officers, which he noted has led to “the delegation of powers of revenue authorities to third parties, creating complications, multiplicity and uncertainty in the tax system,” and that it would correct “aggressive and orthodox methods for tax collection” while also carrying out a “regular review of obsolete tax laws that do not reflect modern realities.”

He noted that all these would help the country address its fiscal and revenue challenges and achieve the objectives of the National Tax Policy.

In his presentation, the distinguished Senator representing Niger North also cited that countries such as Kenya, Japan, India, Australia, Austria, Singapore, and Malaysia have established similar institutions for developing capacity in taxation, excise duty and customs and fiscal matters, and that this has impacted positively on their economy through significantly high tax-to-GDP ratios.

This College is expected to provide training for tax officials, including officers of the Federal Inland Revenue Service (FIRS), Nigeria Customs, sub-national revenue authorities, and even the general public. It is to consist of a main campus and 12 regional centres.

The Bill proposes that the College would be funded chiefly by the extant yearly subvention of the FIRS for training thus requiring no direct impact on government spending.

Senator Adamu Aliero representing Kebbi Central District, Kebbi State, commenting on the Bill noted that the only sustainable source of revenue for the Federation was taxation, and that the proposed College would train tax officials who would be instrumental to widening the country’s tax net.

He also added that there is currently no institution in Nigeria that offers specialised training in taxation.

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NLC, CBN meet in Abuja over Cash scarcity



In less than 24 hours after the leadership of the Nigeria Labour Congress, NLC, directed all its branches and affiliate unions to mobilize members for a shut down of all the branches of the Central Bank of Nigerian, CBN, across the country, over cash scarcity, the apex bank on Thursday evening met with the NLC at the Labour House Abuja.

Recall that the Comrade Joe Ajaero-led NLC, had on Wednesday while addressing journalists said that activities in all branches of the CBN nationwide and the Abuja headquarters will be shut down on Wednesday next due to the cash crunch in the country.

Comrade Ajaero had advised workers to stockpile food items as the industrial dispute with the CBN will be total.

He said Nigerians have been subjected to untold hardship occasioned by the scarcity of naira notes to attend to medical needs and other areas of need.

Vanguard gathered that the NLC threat to paralyze activities at the CBN necessitated the impromptu meeting which started at about 5 pm on Thursday.

The two man delegation made up of the CBN Deputy Gpvrrnor in charge of operations and the Deputy Governor in charge of Economic Pokicy, told the NLC President that about two billion naira was pushed out on Thursdsy in a bid to address the hardship.

A source privy to the meeting told Vanguard that the CBN promised to ensure that the scarcity of naira notes will come to an end as quickly as possible.

“They said the money they pushed out today is equivalent to the whole money pushed out within the week. They also promised to work day and night starting from this night to ensure that there is enough money in the banks,” the source said.

He further said that the CBN denied the allegation that it was printing money out of the country and that the Governor, Godwin Emefiele has directed that the old naira notes should be made available to customers.

Besides, the source denied the allegation that the old naira notes have been burnt, assuring that there will be remarkable improvement in few days to come.

It was gathered that the NLC President, Comrade Ajaero told the CBN delegation that he was not interested in how much that was pushed out, but only interested in seeing that workers and other Nigerians collect their money in banks without stress..

“The President told them that it does not bother us how much they pushed out, our concern is to see that this hardship comes to a stop.

“He also told them that they should work day and night to solve the problem and will depend on the feedback from the average Nigerians who go to the banks to make withdrawals whether there is improvement before Wednesday next week NLC planned to picket the apex bank ,” the source said.

When contacted, the NLC President, Comrade Ajaero, confirmed the meeting and said that the interest of the leadership is to see that Nigerians are able to withdraw their money devoid of the hardship they are passing through.

“We will only know that they are serious when we see improvement,” he added.

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EFCC Arraigns FCMB Manager Over N55Million Overdraft Fraud



The Economic and Financial Crimes Commission, EFCC,  has arraigned one Kichime Gomwalk, a bank manager and two others for alleged fraud.

Gomwalk of First City Monument Bank (FCMB), Michael Damkas Buayam of Tan Global Energy Limited, and Abbas Andrew Dayilim of Castlegate International Limited were arraigned on Tuesday before Justice P. S. Gang of the Plateau State High Court Jos.

The accused persons were arraigned on five counts bordering on stealing, cheating and obtaining by false pretence money to the tune of N55,000.000.00 (fifty-five million naira).

Gomwalk, while serving as the manager of the bank’s branch at Murtala Mohammed Way in Jos, the Plateau State capital, was alleged to have forged COCIN Gratuity Certificate of Pledge/Letter of Set-Off dated December 30, 2019, purportedly co-signed by Mrs. Monica Bitrus Tang and Rev (Dr.) Amos Musa Mohzo, Directors.


It was allegedly used to secure an overdraft facility from FCMB Plc to the tune of N55 million with COCIN Gratuity account number 100GOMWALK379 domiciled with FCMB Plc.

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