FCT Minister laments poor IGR tasks stakeholders to overtake Lagos State

Favour Ishember, Abuja

Minister of the Federal Capital Territry, Malam Muhammad Musa Bello has said that the FCT Administration performed  far below it’s set expectations in terms of revenue generation as he tasked all stakeholders in internally generated revenue (IGR) to work in  harmony  towards improving revenue generation in the nation’s capital and overtake Lagos State in subsequent generations.

The Minister  said this on Monday  while delivering a keynote address at a stakeholders retreat, “Towards a Harmonized Revenue Management Framework in the FCT” at Radisson Blu Hotel, Ikeja, Lagos State.

Bello assured that the retreat will enable participants to consolidate and reposition on the right pedestal to even takeover Lagos in the area of Internally Generated Revenue, as he emphasized the need for the FCT  to step up revenue generation

In the  words of the Honorable Minister:”Our IGR in terms of per capita last year actually placed us next to Lagos, ahead of Rivers State with N24,600 per person, Judging from FCT’s population, estimates of 2006 census, inclusive of the 5 percent growth rate between 2016 and 2020. Rivers State places third with IGR per capita of N15,281.

“However, in terms of total amount of IGR for 2020, FCT generated little over N102 billion and was ranked third behind Rivers State, who realised N117.19 billion.”

 Represented by the FCTA Permanent Secretary, Mr. Olusade Adesola, the Minister  further pointed that with its huge potentials and unique status as the seat of the Federal Government, the FCT should naturally do better.

“With the huge resources we have  in the FCT, if properly topped and effectively managed, no one will see our back in revenue generation, and we will not have to be running “cap-in-hand” to the Federal Government for allocation when we can actually raise these funds and take the Federal Allocation as additional income.

“Our IGR alone should be more than adequate for self-sufficiency in the delivery of effective services and infrastructure, in line with global standards, for all residents, all Nigerians and visitors.

“Expectation from the public from us is huge and we are obligated to deliver on government promises. No one is willing to accept any excuses, neither is the FCT Administration willing to entertain excuses.”

Commenting on the controversy surrounding right of collection, Malam Bello decried that that lack of trust and confrontational practice impedes revenue collection process.

“We are all aware of the challenges associated with claims over rights of revenue collection in the FCT and attendant issues of multiple taxation, and this greatly impacts adversely on our ease of doing business because it erodes confidence and builds discouragement instead of the other way round.

“Several meetings have been conducted in this regard, and several decisions have been reached but we are not there yet. If we were home and dry on this knotty issue, we won’t be here, am I right? I am sure our Area Council Chairmen or their representatives and other stakeholders are also very concerned about this, and I can see them nodding their heads.”

He therfore urged all the stakeholders to make their trip to Lagos worthwhile by mutually working, warning that of they fail, posterity would not be fair to them.

“Let posterity be kind to us, and remember us for bringing lasting solutions to this lingering problem. We must work out a mutually acceptable mechanisms that is foolproof, such that can block all loopholes in the collection of our huge revenue resources. As I mentioned earlier, let us also look into ways we can expand our revenue base in fallow areas, not necessarily increase the rates so as not to burden our people.

“Most importantly, we should also direct efforts at centralising our collections and avoid the use of thugs, with a view to tackling the problem of multiple collections.”

Earlier In his opening remarks, the Permanent Secretary, who was represented by Director, Abuja Geographic Information Systems stated that the “imposition and collection of taxes revenues was a Constitutional obligation that binds the citizens and their leaders and provides the needed resources for progressive national development.

“Regrettably, the administration of this  delicate Constitutional responsibility and obligations at sub-regional levels and in particular, some FCT Area Councils still leave a huge gap for debate and controversies.”

Adesola berated an “avoidable incident where customers were locked inside a restaurant in the FCC by overzealous Area Council’s Revenue officials that gravely embarrassed the Government.”

He stated that the event was an avenue for all the stakeholders to “evolve a revenue management framework that is effective, workable and equitable to all.”

On his part, Lagos State Governor, Babajide Sanwo-Olu noted that tax collection was the most important function of government because without it, government will not be able to be responsible in providing services like security, infracture and foreign relations, among others.

Represented by Lagos State Commissioner of Finance, Dr. Rabiu Olowo, the Governor revealed that his State’s robust Land Use Charge has harmonized all land-based revenue sources with Local Governments, which has also helped built its data base and necessitates collaboration which he warned FCTA could not run away from.

Chairman, Gwagwalada Area Council, Hon. Adamu Mustapha Denze who spoke on behalf other the Council Chairmen demanded they should be made automatic board members of the FCT-IRS, a demand Olusade Adesola said it was noted and would be looked into.

Chairman, FCT-IRS, Abdullahi Odey Attah in his welcome address revealed that the FCT Administration was perfecting efforts on its Property Tax Bill which further shore up FCT IGR.

Attah also stated that despite the pandemic last year, his organization was able to improve revenue generation, even as he called for cooperation of the Area Councils, other stakeholders and urged the public to always pay tax.

Paper presentations at the 3-day retreat include: “Towards a Harmonized Revenue Management Framework in the FCT” by Ifueko Omoigui Okauru of Compliance Professionals Plc; “Sub-Regional Revenue Management; The Way Forward”, by Taiwo Oyedele of Africa Tax and Legal Services; and “The Harmonized Revenue Collection in Lagos State; The Success Story” by Ayodele Subair who is the Executive Chairman, Lagos Internal Revenue Service.

Others were,  “Tackling the Issues of Multiple Taxation” by Ayoola Iyabo Oyeyemi, Permanent Secretary, Ministry of Finance Lagos; “Legal Framework for a Harmonized Revenue Management in the FCT” by  Yusuf Wodi, Solicitor General , FCT; and “Professionalizing Revenue Management” to be handled by CITN President, Dame Gladys Olajumoke Simplice.