FG Spotlights MDAs, Contractors Over N100bn Revenue Loss

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  • It’s operation show your TIN to block leakages          

BY COBHAM NSA, ABUJA – Determined to check growing leakages in public revenue streams, the Federal Government said vendors of Ministries, Departments and Agencies (MDAs) must henceforth display their Tax Identification Numbers (TINs) on invoices in order to access official payments from government coffers.

The new order is against the backdrop of about N100 billion discovered as tax revenue shortfall by contractors between 2012 and 2017.

Minister of Finance, Mrs. Kemi Adeosun unveiled the government’s directive on Tuesday in Abuja with the Accountant General of the Federation, Alhaji Ahmed Idris empowered to ensure immediate and effective implementation.

Adeosun explained that government has resolved to effectively block revenue leakages through MDAs’ vendors amounting to over N100 billion in tax revenue deficit by contractors in the last six years.

In a memo titled “Compliance with Tax Payments by Federal Government Vendors”, the Minister said persistent leakages in revenue remittances by vendors have been uncovered by the Government’s Project Lighthouse, a system-wide revenue intelligence data-warehouse.

She noted that the leakages were due to lack of TIN, particularly on Value Added Tax (VAT), Withholding Tax (WHT) and other related inflows expected from contracts’ execution into the government coffers

According to the Minister; “In order to address these lapses in the implementation of the 2017 Budget as well as boost the revenue accruable to the Government, all MDAs should be directed to insist that invoices submitted by vendors for payments must clearly state the TIN.

“This is to confirm tax compliance by relevant government vendors before payments are effected”.

A statement by the Special Adviser, Media and Communications to the Finance Minister, Olayinka Akintunde reported Mrs Adeosun as stating that the directive to the government vendors is in compliance with the provisions of both the Federal Inland Revenue Service (FIRS) and Procurement Acts of 2007 respectively.

The statement further stated that routine spot checks would be conducted on MDAs as part of efforts to ensure compliance with the directive.

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