At the Nigerian Financial Intelligence Unit’s (NFIU) first Revenue Assurance summit with the Internal Revenue Services of all the States of the Federation and the Federal Capital Territory (FCT), Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, disclosed that henceforth, any government agency that withholds data from another will face the consequences.
In his address titled “The Importance of Revenue Assurance in Economic Stability,” Oyedele, underscored the essential role of revenue assurance in fostering economic stability.
He asserted that revenue should serve as a means to enhance the lives and livelihoods of citizens, rather than merely a financial target.
Oyedele emphasised the need for a coherent policy environment that encourages investment and collaboration among federal and state agencies.
He expressed concern over reports that the Joint Tax Board (JTB) was required to pay for data access from governmental sources, questioning how a government could claim to lack revenue while simultaneously selling data.
To address this issue, Oyedele announced plans to draft legislation mandating the free provision of government-held data, with strict deadlines for compliance. “If you don’t release data within 48 hours, there will be consequences,” he warned, indicating a shift towards criminalising data withholding.
He highlighted the importance of linking domestic data with international standards to protect information integrity while ensuring that revenue collection processes are efficient and transparent.
He said: “Since we are talking about revenue assurance, and like I said, this is a very important assignment and discussion, we need to bear in mind that even the revenue itself is a means to an end, not an end in itself, it must make a meaningful impact on the lives, livelihoods, and wellbeing of the people for it to make sense. They could be painful and sacrifices, but they would be short-term, medium- to long-term and should benefit us.
“Our economy must be designed to be conducive and investment friendly, our policy environment must be purposeful and coherent, let’s not be pulling in different directions, states versus federal or even within federal agencies.
“JTB (Joint Tax Bank) told me as part of the work we are doing, the number of agencies they were looking for data, you know they were commending the NFIU and we are grateful for the NFIU and the leadership… and they were asking them to come and pay for data.
“JTB was being asked to pay for data I couldn’t believe it. In the same Nigeria, the government has data and the government is selling data, and we say the government does not have revenue. How are we supposed to have revenue if we are selling data?
“So we drafted a law, it is not your data, is our data, you will give it. In fact, we will give you a deadline of 48 hours; if you don’t release data, there will be consequences. We are criminalising it. Give the data. “We are developing the protocol to ensure that there’s integrity, data protection, and that nice stuff is not a problem but to give the data. So we are bringing that data for Nigeria. And we are going to link it to the international data… to protect information.”
The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee emphasised the necessity of creating an environment conducive to economic growth. “How can we ensure there’s economic growth and competitiveness so that we allow ourselves and businesses to thrive?” he questioned, highlighting the need for a tax system that does not stifle investment or production.
Oyedele also addressed the challenges posed by misinformation surrounding his committee’s initiatives. “We have been using a lot of data for our work, but there has been misrepresentation,” he noted. He recounted a conversation with an editor who admitted to being paid to write negatively about their efforts, saying, “His conscience wouldn’t let him.”
He further criticised unfounded claims about fiscal policies, stating, “Somebody just wakes up and makes up something,” referencing a recent statement report where the committee was alleged to have announced a reduction in the federal government’s allocation in FAAC—Federal Account Allocation Committee—10 per cent.
Oyedele urged stakeholders to focus on problem-solving rather than creating obstacles for those aiming to improve the economy. “I wish we could focus on solving our problems rather than making it harder for those who want to work,” he remarked.
Oyedele also said the committee has proposed a synchronised tax system that includes eight key taxes across federal, state, and local levels. “If we collect these eight taxes effectively, we will definitely see a four- to five-fold increase in revenues within two to three years,” he asserted confidently.
Additionally, Oyedele highlighted the burdens placed on Nigerian businesses, particularly regarding taxes levied in foreign currencies. “We found that Nigerian businesses are being asked to pay some taxes in dollars—NIMASA, NPA, etc.—which amounts to an estimated $3.5 billion a year,” he explained. This practice not only strains local businesses but also contributes to the depreciation of the naira. “We are crying that our naira is losing value; why wouldn’t it lose value when we impose unnecessary dollar demands?” he questioned.
As part of his vision for fiscal reform, Oyedele proposed a national framework for subsidies aimed at alleviating financial pressures on businesses. He stated, “We have drafted one and hope all political leaders will adopt it.”
He reiterated that revenue generation must ultimately benefit the populace. “Revenue itself is a means to an end; it must make a meaningful impact on lives,” he said. He cautioned against policies that undermine public welfare: “Any policy that distorts economic activities is not good.”
In closing, he called for unity among stakeholders in implementing these reforms: “Our policy environment must be purposeful and coherent; let’s not pull in different directions.” His remarks set a hopeful tone for collaboration aimed at enhancing Nigeria’s economic landscape through effective revenue assurance strategies.
Earlier in a remark by the Chief Executive Officer of NFIU, Hafsat Bakari, while NfIU work on tax crimes initially focused on supporting the Federal Inland Revenue Service, the agency took a further step to explore partnerships with sub-national counterparts.
“This expansion was predicated on the recognition that the vast majority of tax evasion happens at the state level. Our analysis led us to the conclusion that the data on financial transactions held within the unit would be of tremendous benefit to State Internal Revenue Services as well.
“While FIUs were created by international conventions to address criminal activity, the same international conventions and standards require that we put in place measures to protect the integrity of the information that we provide.
“To this end, our approach to working with states is built on the establishment of a Memorandum of Understanding that sets out the principles, objectives, and limitations of the intelligence provided.
“We have also developed, using our in-house technical resources, a secure platform for requesting and receiving intelligence from the NFIU, the Crime Records Information Management System (CRIMS).
“Through CRIMS, we have entirely eliminated paper records, which are prone to compromise, and we have robust audit mechanisms to ensure we are aware of who is asking for and who is receiving our intelligence,” she said.
Source: thesun