Favour Ishember, Abuja
The Federal Capital Territory Internal Revenue Service (FCT IRS) has announced plans to introduce a harmonised revenue collection system in the nation’s capital, aimed at creating a more efficient and streamlined process for tax collection.
Speaking at a recent engagement, by the Executive Chairman of the FCT Internal Revenue Service (FCT-IRS), Michel Ango, revealed that the harmonisation process, which is expected to be completed by 2026, will not involve taking over anyone’s responsibilities but rather create a unified system that ensures efficiency in revenue collection.
The agency’s vision is to create a system that supports a livable city, with good roads, hospitals, schools, bridges, and other infrastructure that citizens can use.
According to the FCT IRS boss, the harmonisation process is necessary to address the challenges of multiplicity of taxes and overlapping responsibilities between the FCT Administration and the Area Councils.
“We are simply working towards a unified system for revenue collection in the future,” the FCT IRS said. “Our real vision is to provide funding for the FCT so that we can have good roads, hospitals, schools, bridges, and other infrastructure that citizens can use.”
Ango also revealed that revenue generation is a key focus area, with the FCT Administration recording about five times more revenue in the first few months of this year compared to the same period last year.
However, the FCT IRS emphasised that revenue is never enough and that the administration is doing its best to improve revenue collection.
The agency promised to provide a proper briefing with facts and figures on revenue collection at the appropriate time.
On the domestication of tax reform laws in the FCT, Ango said it cannot give a timeline as it is not a member of the legislature.
However, the agency assured that it will work with the legislature to ensure that necessary laws are passed to enhance the ability of the FCT Administration to provide a livable city.
The FCT IRS also assured that the issue of multiplicity of taxes will be resolved shortly, with the Honourable Minister driving an initiative to ensure that all stakeholders in the revenue ecosystem of the FCT work together.
While presenting President Bola Tinubu’s fiscal agenda at a forum, which he described as “timely and strategic”, the Executive Chairman of the Nigerian Revenue Service (NRS), Dr. Adedeji, emphasized the need for policy coherence and inter-agency collaboration in taxation, warning that fragmented systems undermine compliance and raise business costs.
Adedeji advocated for a digital revolution in taxation, stating that modern tax systems are data-driven and that manual inefficiencies must be addressed.
He proposed integrated databases, e-payment platforms, and real-time analytics to curb leakages and enhance revenue mobilization.
The NRS Chairman hailed the new harmonization laws as a step towards eliminating multiple taxation, particularly for Small and Medium Enterprises (SMEs), and urged subnational authorities to adopt these reforms.
He emphasized that revenue mobilization must be rules-based and transparent.
Adedeji commended the FCT Minister and FCT-IRS for fostering dialogue and agreed that harmonization requires legislative clarity, technology, and stakeholder buy-in.
The forum concluded that the outcomes would set a benchmark for Nigeria’s fiscal future, with a focus on efficiency, equity, and revenue generation to create a livable and thriving Federal Capital Territory.
