N15bn Revenue Loss: Niger State Tackles FCT Over Tax Remittals
BY EDMOND ODOK, ABUJA – The Governor of Niger, Mr Abubakar Bello has accused the Federal Capital Territory Administration (FCTA) of illegal tax retention and remittals that currently deprive the State of over N15 billion in yearly revenue
Bello said at present, the state earns a paltry N400 million monthly as its Internally Generated Revenue (IGR) and appealed for intervention by the Minister of Finance, Mrs Kemi Adeosun to address the huge remittances that wrongly accrue to the FCT instead of Niger State.
Speaking during his visit to the Finance Minister in Abuja on Monday, Governor Bello, who was accompanied by some of his commissioners, requested that tax deductions from salaries of civil servants staying in Niger should henceforth be paid to the state for fairness and equity.
He said an urgent review of the existing tax collection and remittances has become imperative to ensure that Niger gets its due share of monthly income through improved IGR.
According to him, “in line with our target to increase IGR and provide better services, we have been reviewing the tax collection of Niger.
“Our findings indicate that thousands of those working in the FCT actually reside in Niger State, in areas such as Suleja and parts of Bwari, which borders FCT.”
The Governor however noted that “taxes deducted from the salaries were being remitted to FCT on a consistent basis”, adding that; “This had been the case over many years and related to both civil servants and workers engaged by the private sector.”
He said available records indicated that about 95,000 persons are involved with the monthly revenue loss by the State put in the region of over N1.3 billion and about N15 billion annually.
Governor Bello maintained that the amount is quite significant and would uplift the people’s living standards if effectively deployed into infrastructure development, as well as improved service delivery in healthcare, education, employment generation, job creation, water and social services in the State
He therefore pleaded with the Finance Minister to, on behalf of Niger State government, engage relevant Federal Government agencies, like Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Independent Corrupt Independent Corrupt Practices and Other Related Offences Commission (ICPC), Nigeria Deposit Insurance Corporation (NDIC) and the Nigeria Police, among others to initiate a process where revenue remittals would accrue directly to Niger government.
In her remarks, Finance Minister Adeosun admitted that wrongful tax remittances remain a serious challenge which the federal government is working on to resolve in the country.
Noting that the problem has regrettably persisted and was not peculiar to Niger alone, she cited Lagos and Ogun states where Lagos enjoyed taxes and revenue collections that should have gone to Ogun State.
She admitted that losing over N1 billion on a monthly basis is huge for any state but pledged to assist the Niger Government address the issues raised, especially in receiving its tax due from civil servants enrolled on Integrated Payroll and Personnel Information System (IPPIS).
