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How FIRS Plans To Realise Its Revenue Target -Fowler

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The Federal Inland Revenue Service (FIRS) says it plans to realize its revenue target for the year through recoveries from defaulting millionaire taxpayers, values added (VAT) and compliance enforcement activities.

The Chairman of FIRS, Tunde Fowler, said in January that the agency’s revenue collection target for 2019 was about N8 trillion.

Mr Fowler told the House of Representatives joint committees on Finance, Appropriations, Aids, Loans and Debt Management Legislative Budget and Research and National Planning and Economic Development that he hopes about N750bn would be realized from about 55,000 defaulting taxpayers during the year.

Mr Fowler, who spoke on the 2019/2021 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), said using banking information to bring non-compliant taxpayers with N1 billion and above turnover to comply about N23.25 billion has been recovered so far.

He also restated that 85% of VAT collected goes to State Governments. He said the exercise has been extended to cover those with turnover of N100 million and above.

“To date, about 500 of the tax defaulters have come forward and have paid about N24 billion. We believe we should be able to go through the 55,000 before the middle of this year.
“In terms of estimates we should be able to be able to generate from this exercise alone about N750 billion.”

Besides, Mr Fowler said the FIRS also expects that the increase in Value Added Tax (VAT) collection between 2015 and 2018 will continue during the year.

He said FIRS is already broadening its VAT collection scope with the adoption of States Accountants Generals (SAG) collection platform, VAT Auto-Collect, integration of the GIFMIS platform with Ministries, Departments and Agencies, (MDAs) and through e-Service payment options.

Out of about N5.3 trillion, a large percentage of the revenue is shared between states and local governments.’ In VAT, there has been a growth of over 44 per cent between 2015 and 2018 at the current rate of 5 percent.

“When you look at Africa as a continent, Nigeria still has the lowest VAT rate. When we look at the items that do not attract VAT, they include basic food items, medicals, and education.
Insisting VAT is not for the poor, Mr Fowler said if one is able to go to a restaurant to eat and drink the same thing one can buy in the open market, then one can pay VAT.

“So, VAT basically is a consumption tax, and those who choose not to go to the open market to buy their food and cook at home are subject to VAT. So, VAT is not a hardship on the low income earners.

“For those who have the ability and the desire to take the choice of going to areas where they have to pay VAT, then they should be allowed to pay VAT,” he added. He said revenue collection by FIRS increased by about 32 per cent from N4.02 trillion in 2017 to N5.3 trillion in 2018.
The FIRS Chairman told the committee that through enforcement activities in respect of defaulting taxpayers from various tax offices, tax audit and investigation assessments, the agency recovered about N28. 51 billion and $77. 83 million.

Also, the FIRS is partnering with the Economic and Financial Crimes Commission (EFCC) and Joint Tax Force (JTF) since 2018 to enhance the fight against tax related economic fraud. As at December 2018, he said about N6. 94 billion and $278,430 had been recovered by the JTF as part of initiatives to boost revenue generation.
To deepen tax revenue collection and expand the nation’s tax net as well as increase the revenue base, Mr Fowler said the FIRS also initiated income tax on property owners in Abuja and Lagos.

He said the initiative, which was initially targeted at property owners in Abuja and Lagos, has so far yielded N4.3 billion, and is being extended to other locations like Oyo and Kaduna states.
“It is important to note that this is not a property tax, but rather the use of the provisions of the law to bring into the tax net companies that own properties but failed to file necessary tax returns and pay appropriate taxes due,” Mr Fowler said.

On tax audit exercise of the Service, the FIRS boss said this will cover both the National Tax Audit (NTA) and the Pioneer Audit (PA). The NTA exercise contributed the sum of N212.79 billion to tax collection in 2018.

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Wole Olanipekun, Taiwo Oyedele Urge South-West Governors to Maximise Tinubu Presidency for Regional Growth

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Senior  Advocate of Nigeria (SAN), Wole Olanipekun, and Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, have called on South-West governors and political leaders to fully leverage President Bola Tinubu’s administration to drive accelerated development across the region.
The duo made the call on Monday in Akure, Ondo State capital, while speaking at a public lecture organised as part of activities marking the 50th anniversary of Ondo State’s creation.
They stressed that the South-West must prioritise massive investments in infrastructure, industrialisation, and economic reforms during Tinubu’s tenure to secure long-term regional prosperity.
Olanipekun cautioned that the political advantage of having a South-West president is temporary, noting that President Tinubu’s tenure will come to an end after his second term in 2031.
According to him, the region must act decisively within this window to strengthen its economic base and ensure sustainable development beyond the current administration.

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BREAKING: Malami Tells Court He Earned ₦12bn+ Legitimately, Seeks Release of Seized Properties

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Former Attorney-General of the Federation, Abubakar Malami (SAN), has disclosed details of his earnings while asking a Federal High Court in Abuja to set aside an interim order authorising the seizure of 57 properties allegedly linked to him.
Malami made the disclosure through his counsel, Joseph Daudu (SAN), in a motion on notice filed before the court. The application seeks to vacate an interim forfeiture order affecting three of the 57 properties currently under investigation by the Economic and Financial Crimes Commission (EFCC).
According to the court filing, Malami stated that he had fully and transparently declared his sources of income in his asset declaration submitted to the Code of Conduct Bureau (CCB).
The document outlined multiple income streams, including:
₦374.63 million earned from salaries, estacodes, severance allowances, and related entitlements.
₦574.07 million generated from the disposal of personal assets.
₦10.01 billion recorded as turnover from private business ventures.
₦2.52 billion issued as loans to various businesses.
₦958 million received as traditional gifts from personal friends.
₦509.88 million realised from the launch and public presentation of his book titled “Contemporary Issues on Nigerian Law and Practice: Thorny Terrains in Traversing the Nigerian Justice Sector – My Travails and Triumphs.”
Malami’s legal team argued that the declared earnings sufficiently explain the source of funds used to acquire the properties in question, urging the court to lift the interim seizure order.
The matter remains pending before the Federal High Court as the EFCC continues its forfeiture proceedings.

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MAN Urges Federal Government to Stop NAFDAC’s Sachet Alcohol Ban, Warns of ₦1.9 Trillion Loss

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The Manufacturers Association of Nigeria has appealed to the Federal Government to restrain the National Agency for Food and Drug Administration and Control from proceeding with its ban on alcoholic beverages packaged in sachets and small PET bottles, warning of catastrophic economic consequences.

In a statement issued by Director-General Segun Ajayi-Kadir, MAN described NAFDAC’s renewed enforcement action as detrimental to indigenous industrial operators and fundamentally inconsistent with earlier government directives.

The manufacturers’ body emphasized that NAFDAC’s recent move directly contradicts the House of Representatives resolution dated March 14, 2024, which specifically restrained the agency from implementing the punitive ban following comprehensive stakeholder consultations through a public hearing.

“Rather than abiding by the generally agreed resolution, NAFDAC bided its time and chose to rely on a resolution of the Senate that was devoid of the usual stakeholders’ engagement,” Ajayi-Kadir stated, noting that operators now face confusion over conflicting directives from different arms of government.

MAN warned that enforcing the ban would devastate Nigeria’s manufacturing sector, threatening over ₦1.9 trillion in existing investments and triggering the retrenchment of more than 500,000 direct employees alongside approximately five million workers in the indirect value chain.

The association cautioned that the restriction would paradoxically undermine public health by creating market opportunities for illicit, substandard and unregulated products beyond the control of regulatory authorities.

“This is counterproductive as it will open up the market for illicit, sub-standard, and unregulated products. It will lead to an influx of imported alternatives, mostly smuggled. It will deny the government of revenues collectable from the companies,” Ajayi-Kadir declared.

The manufacturers’ group emphasized that alcohol served in sachets by local producers is manufactured under hygienic conditions and certified by regulatory agencies including NAFDAC itself, making the ban particularly contradictory.

MAN also challenged the untested assertion that sachet alcohol drives underage consumption, citing credible and empirical research that contradicts this claim. The industry has independently invested over ₦1 billion in nationwide media campaigns promoting responsible alcohol consumption and discouraging underage abuse.

The association stressed that banning certified products would deny adult consumers with limited budgets access to regulated alcoholic beverages while simultaneously depriving the government of substantial tax revenues.

Food, Beverages and Tobacco Senior Staff Association and National Union of Food, Beverages and Tobacco Employees have joined MAN in opposing the ban, demanding that NAFDAC provide empirical evidence that sachet alcoholic beverages are being consumed by children.

Labor unions have called for the suspension of NAFDAC Director-General Professor Mojisola Adeyeye, accusing her of siding with multinational companies to undermine local manufacturers.

However, NAFDAC has maintained its position, with Adeyeye insisting that enforcement is backed by law following the Senate’s unanimous resolution setting a December 2025 deadline that has now passed.

The NAFDAC chief argued that the proliferation of high-alcohol-content beverages in sachets has made such products easily accessible, affordable and concealable, contributing to widespread misuse and addiction among minors and commercial drivers.

“This public health menace has been linked to increased incidences of domestic violence, road accidents, school dropouts, and social vices across communities,” Adeyeye stated, describing the ban as protective rather than punitive.

In contrast, civil society organization Socio-Economic Rights and Accountability Project has approached the Federal High Court in Lagos seeking injunctive orders to prevent the Federal Government from interfering with NAFDAC’s statutory powers to enforce the ban.

SERAP argues that continued circulation of sachet alcohol violates the National Health Act 2014, the NAFDAC Act and international commitments under the World Health Organization’s Global Strategy to Reduce Harmful Use of Alcohol.

The legal and economic battle over sachet alcohol highlights deeper tensions between public health regulation, economic survival and stakeholder consultation in Nigeria’s policymaking process, with no clear resolution in sight as multiple court cases and regulatory actions unfold simultaneously.

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