FCT-IRS Partners NFIU on Tax Compliance

Olawale Ajimotokan

The Federal Capital Territory Internal Revenue Service (FCT-IRS) is collaborating with the Nigerian Financial Intelligence Unit (NFIU) to enhance efficiency, expand tax net and nudge tax compliance in the territory 

The Acting Executive Chairman, FCT-IRS, Mr. Haruna Abdullahi, said at a retreat for the staff of the service and NFIU that the partnership could not have come at a better time.

“FCT has the potential. We must do everything possible to harness these opportunities for the territory in terms of revenue collection. Abuja being the capital city, is a place where most important people live, therefore, we must take that advantage. 

“FCT-IRS alone can generate from N200 to N300 and probably N400 billion in the near future and I hope this type of engagement that we are going to have with NFIU, will increase our tax payers and also carry out assessments with adequate information,” he stated.

He decried the low tax GDP ratio in the country pointing out that Nigeria is among the lowest tax GDP ratio in Africa at six per cent whereas, the average in Africa is 18 per cent based on OECD revenue statistics report on Africa in 2021.

He said the service has started various reforms and initiatives to hold people accountable to file their tax returns and to pay what is appropriate in terms of what they need to pay as tax.

In his remarks, Associate Director, NFIU, Mr. Babagana Bashir, who was represented by Mr. Felix Obiamalu, expressed delight over the mutually beneficial collaboration due to some similar features which both organisations have in common.

He pledged to support the FCT-IRS in any way possible to enhance its operations with a view to significantly increase revenue collection in the territory.

“The essence of this retreat principally is to examine the best way to operationalize the content of the MoU with the FCT-IRS. It is just like a marriage between a man and a woman, so when two people come together and agree to move forward there must be coming together of minds first before every other thing follows,” he stated.

 Both organisations presented detailed papers which set out their mandates, powers and limitations as well as possible ways of strengthening the partnership with the primary goal of enhancing their operations for the betterment of FCT and the country.