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The FIRS’s Tax Collection Revolution – By Salisu Na’inna Dambatta

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It is akin to a revolution: welcome to the big paradigm shift in Nigeria’s tax collection.

The shift is from consistently low, inadequate and below targeted tax collection to a record-setting collection of N10.1 trillion in 2022. And the trend of raking in more revenue to finance people-oriented projects continues.

Since his appointment as the Executive Chairman of the Federal Inland Revenue Service (FIRS) on 9th December, 2019, the country has witnessed and benefitted from his expertise in tax matters. This is unsurprising given his professional and career pedigree. As immediate past Chairman of the African Tax Administrators Forum (ATAF), Mr. Nami led the birth of a consciousness in the continent that technology was the future of taxation. He has carried that philosophy and campaign to the Commonwealth Association of Tax Administrators (CATA), where he has been President since 2021.

The Bayero University Kano graduate, Nami is a trained and skillful Tax, Accounting and Management Professional with high qualifications and professional practicing licences from relevant professional bodies. He has been in the business of Auditing, Tax Management and Advisory Management Services to diverse clients in the Banking, Manufacturing, Services, Public Sector and Non-Profit Organisations for around three decades.

He has transformed the revenue collection for Nigeria by deploying his vast experience, deep knowledge and patriotism to bear on his role as Chairman of the FIRS and Joint Tax Board.

The improved tax collection in the country since his assumption of office as Chairman of the Federal Inland Revenue Service (FIRS) to date is evidenced in Tax Statistics/Report the institution has released from 2020 to date.

Whereas the FIRS raked in N10.1 trillion in 2022, the highest ever so far; the same Service could only generate N3,741.7574 trillion out of a modest target total revenue of N4,572.2090 trillion in 2015. The total collection for 2015 at N3.714 trillion was the equivalent of slightly over one third of the 2022 collection.

Three years later in 2018, the revenue target for the FIRS was N6,747.0344 trillion. However, that target proved ambitious as the Service was abled to generate only N5,320.8914 trillion that year. The total revenue for 2018 was just above half of the N10.1 trillion generated by Muhammadu Mami and his team in 2022.

While briefing the National Economic Council (NEC) recently, the top tax man attributed the high tax collection success in the first half year to three factors namely: improved voluntary tax compliance by taxpayers; the continued improvement of automation of tax administration processes, including the updated VAT filing processes; and strong engagement with stakeholders in both the formal and informal sectors of the economy.

He assured the NEC that, “the performance in the second half of the year would be better considering the continuing improvement to our tax administration processes.”

It is heartwarming that the January to June 2023 tax collected in the sum of N5.5 trillion is more than the entire collection of N5.320 trillion in 2018.

Also the N5.5 trillion was more than the target of N5.3 trillion set for the first six months of this year. And the FIRS joyfully celebrated it as the largest tax collected for any six months since tax collection started in Nigeria.

Muhammad Nami disclosed that the non-oil sector contributed more revenue than the oil sector, “Tax revenue collected from the oil sector from January to June 2023 stood at N1.73 trillion, as against a target of N2.3 trillion; while non-oil tax collection stood at N3.76 trillion, as against a target of N2.98 trillion.”

It is important to remember that he was appointed Chairman FIRS in December 2019. In that year, the revenue target was N8,802.3860 trillion. But the total collection for that year was below six trillion: it was N5,261.9163 trillion. There was a shortfall of over N3.5 trillion.

In 2020 his first full year in office, FIRS collected N4.95 trillion a shade below the target of N5,076.8518, at 98 per cent performance. It was achieved amidst a recession, the COVID-19 worldwide economic shutdown, low oil revenue and the economic disruptions caused by the EndSARS protests.

The NBS affirmed that the FIRS collected N6.405 trillion in 2021. The target for that year was N6.401 trillion. It was a 101 per cent success story. But it was triumphantly dwarfed by the N10.1 trillion best-ever collection so far achieved in 2022.

Salisu Na’inna Dambatta wrote from Dambatta town.

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37 Miners Killed By Toxic Gas In Plateau; FG Yet To React

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The Federal government has remained silent after reports emerged that carbon monoxide, a poisonous gas, left 37 miners dead and 25 hospitalized at a mining site located in the Zurak Wase Local Government of Plateau State.

This was disclosed in a report by a security journalist, Zagazola Makama, on Wednesday.

Sources told Makama that the incident occurred at the Solid Mining Company early on Feb. 18.

The victims are between 20 and 35 years old and were conducting routine mining operations when they inhaled toxic gas that had accumulated in the poorly ventilated tunnels, the report said.

Makama said, “The site is under strict control, and emergency protocols are being followed to manage the situation,” a source told Makama.

Meanwhile, there is no indication that the Nigerian government nor the Plateau State, and security operatives have reacted to the incident or done anything on the matter.

There are no official statements from both quarters confirming or debunking the incident as of filing this report on Wednesday.

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Dangote Projects Naira Appreciation To N1,100/$ In 2026

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Aliko Dangote, Chairman of the Dangote Group, forecasts that the naira will appreciate to N1,100 per dollar within 2026.

He shared this outlook on Tuesday during the federal government’s unveiling of the National Industrial Policy 2025.

The naira has strengthened in recent weeks, appreciating to N1,335.95 per dollar at the official market and N1,380/$ at the black market on Tuesday.

Commenting on the development, the billionaire businessman said the country has the potential to generate large-scale consumption, industrial growth, and disposable incomes.

“I mean today if you look at it, your excellency, I believe with the policies that you have implemented in government, people now have started seeing the result and manufacturers are very very happy,” Dangote said.

“Today, the dollar is N1,340. Mr. Vice-President, I can assure you with what I know, blocking all this importation and co, naira this year will be as low as N1,100 if we are lucky.

“The only thing is for maybe the government to stop the naira from getting stronger so that they will keep collecting more naira.

“But it’s a catch-22 situation where, now, if the naira gets stronger it means that everything will go down. Everything will go down because we are an import-based country which we shouldn’t be.

“What you should be is to manufacture all the things that we need.”

On February 12, Femi Otedola, the chairman of First HoldCo, expressed optimism that the naira will strengthen meaningfully and will trade below N1,000/$1 before year-end as domestic refining is fully underway.

 

 

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Defend Our Sovereignty: Falana, Ibrahim, Bugaje Reject US Military Presence

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A group of Nigerian leaders, including Femi Falana and Jibrin Ibrahim, has condemned the recent deployment of U.S. troops as a violation of national sovereignty and a dangerous precedent for foreign meddling.

The backlash follows the arrival of U.S. military aircraft last week, part of a mission involving roughly 200 American soldiers tasked with advisory and training roles.

While U.S. officials describe the steady influx of personnel as a temporary counter-terrorism support measure, critics argue the presence of foreign forces undermines the country’s independence.

But Nigeria’s Defence Headquarters (DHQ) insisted that the US personnel are technical specialists serving strictly in an advisory and training capacity not combat troops and that all activities will be conducted under the authority, direction, and control of the Nigerian government in close coordination with the Armed Forces of Nigeria.

In a joint statement titled “No to Foreign Forces in Our Land: Defend Our Sovereignty”, the group said the presence of US soldiers in Nigeria raises serious constitutional and sovereignty concerns.

The statement was jointly signed by Femi Falana (SAN), Prof Jibrin Ibrahim, Dr Abubakar Siddique Mohammed, Dr Dauda Garuba, Prof Massaud Omar, Prof Mohammed Kuna, Engr YZ Ya’u, and Dr Usman Bugaje.

They recalled Nigeria’s historical resistance to foreign military domination and warned against what they described as a creeping neo-colonial arrangement.

“Nigeria’s history is replete with principled resistance to foreign military domination. At critical moments, our leaders civilian and military alike have asserted our sovereignty and rejected external interference. That legacy must not be abandoned,” the statement said.

They recalled the Anglo-Nigerian Defence Pact of 1960, which was abolished in 1962 following widespread public opposition. “Political independence without military sovereignty is incomplete,” the statement noted, stressing that Nigerians had always resisted external interference in military affairs.

The group also cited Nigeria’s role in rejecting American pressure during the 1976 Organisation of African Unity (OAU) summit on Angola.

At the time, General Murtala Mohammed famously declared that “Africa has come of age and would no longer operate under the orbit of any extra-continental power. His words were not mere rhetoric but a declaration of continental dignity and sovereign equality.”

The signatories highlighted what they described as a troubling pattern of attempts to impose military agreements on Nigeria. “In 2001, a proposed Military Cooperation Agreement between the United States and Nigeria was withdrawn after strong opposition from Nigeria’s Ministry of Defence,” they recalled.

Similarly, in 2003, Nigeria signed a Bilateral Immunity Agreement (BIA) with the United States, shielding American citizens from surrender to the International Criminal Court. “By 2005, the Nigerian Senate nullified the agreement, citing constitutional violations and inconsistency with the Rome Statute,” the group said.

“These episodes demonstrate a consistent national principle: foreign military arrangements must comply with Nigeria’s Constitution and must never compromise our sovereignty,” they added.

They cited Section 12(1) of the 1999 Constitution, which provides that no treaty between Nigeria and another country shall have the force of law unless enacted by the National Assembly.

The statement rejected any suggestion that Nigeria’s Armed Forces are incapable of defending the country. “Nigeria’s Armed Forces have a distinguished record in international peacekeeping under the United Nations and the African Union,” it said, citing Nigeria’s leading role in ECOMOG operations in Liberia and Sierra Leone.

“Rather than outsourcing our security, Nigeria should fully equip and modernise the Nigeria Police Force and the Armed Forces, strengthen intelligence coordination, improve welfare and morale of troops, invest in domestic defence production, and address socio-economic drivers of insecurity.”

They warned that sovereignty is not a ceremonial concept but the foundation of statehood. “Once foreign troops are stationed on national soil without transparent constitutional processes, sovereignty is diluted—incrementally, perhaps quietly—but meaningfully.

“Nigeria must not drift into arrangements that future generations will struggle to reverse. History teaches us that sovereignty surrendered in the name of expediency is rarely easily reclaimed,” the statement said.

They also urged the federal government to remain consistent with Nigeria’s tradition of rejecting neo-colonial defence pacts and unconstitutional agreements.

‘US security help has not improved any country’

Prof Jibrin Ibrahim, in an interview with Daily Trust, expressed worry that Nigerians appear less vigilant about potential defence arrangements compared to the 1960s, when the Anglo-Nigerian defence pact with the United Kingdom faced widespread public resistance.

“I’m concerned that, as we point out right from the 1960s, when the defence pacts were proposed by the government, there was resistance by the Nigerian people. They complained, they criticised them, they objected, and that led to the government backing down,” he said.

He lamented what he described as growing public indifference, noting that many Nigerians now argue that any foreign assistance, particularly from the United States, should be welcomed if it promises to address insecurity.

“Today, many people are saying that if the Americans are offering to help, why not accept it? But there is a lot of ignorance about the implications,” he added.

Prof Jibrin questioned the track record of U.S. military involvement abroad, arguing that American security interventions in other countries have not necessarily resulted in lasting peace or stability.

“In which country has America offered to help in security, led to improved security? There is none in the world. All their external involvements have been to deepen insecurity, rather than to improve the security situation,” he said.

 

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