EL-RUFA'I RAISED IGR FROM N11BN IN 2014 TO N58.09BN IN 2022

EL-RUFA'I RAISED IGR FROM N11BN IN 2014 TO N58.09BN IN 2022
                                        By:
                         Nurudeen Dauda
                         15th May, 2023
nurudeendauda24@yahoo.com
nurudeendauda24@gmail.com 
nurudeendauda.blogspot.com

To start with, it is sad to note that about 98% of our state governments including the so-called oil producing states rely on monthly revenue from Federal Account Allocation Committee (FAAC) for their basic survivals. It worries me to note that out of all the 36 states of the federation only Lagos can shoulder its monthly "personnel" and "overhead"costs without recourse to FAAC. Many states have more than 75% reliance on their entire annual budget on FAAC. It is an economic "suicide" for us to continue to rely on a "volatile" commodity for our survival.

 In a recent report only four states of: (1) Lagos,(2) Rivers, (3) Ogun, and (4) Kaduna have above 40% IGR to their FAAC of 2020. Eight states have less than 10% IGR to their FAAC of 2020 which are: (1) Bayelsa; (2) Jigawa; (3) Katsina;(4) Adamawa; (5) Yobe;(6) Niger; (7) Taraba; and (8) Benue. (Economic Confidential, Report, 2021). One sadly notes that only Kaduna state from the North made the list of above 40% IGR to FAAC in 2020.

Available record shows that Internally Generated Revenue (IGR) of Kaduna state in 2014 was only about N11.5billion which represented an average of 900milliom monthly IGR. Under governor El-rufa'i, it is worth mentioned that Kaduna state rose from 11.5bn Annual Tax collection in 2014 to58.09bn in 2022 which is more than 500% rise. 

Dr. Zaid Abubakar the executive chairman , KADRIS revealed that:" Between 2011 and 2015, the state’s IGR had hovered between N9.7b and 12.78b... Since the governor’s reform of the state’s internal revenue system,the increased revenue collection had been witnessed every year...In 2015, Kaduna generated N11.7 b, but soon after he came on board, Governor Nasir el-Rufai had, in 2016 appointed Ifueko Omoigui-Okauru, a former executive chairman of the Federal Inland Revenue Service (FIRS) to restructure the KADIRS for efficiency. By 2016, the state had generated N23b, which grew to N26.5b in 2017 , N29b in 2018 and N44.9b in 2019." (Daily Trust,13 Jun 2020).

Similarly, Kaduna state had N50.77b in 2020, in 2021 N52.85b, and in 2022 N58.09.billion.With the recent report Kaduna state jumped to 4th on IGR ahead of all the oil producing states except Rivers. Kaduna state is now one of three (3) states that generate more revenue than FAAC. Kaduna state under governor El-rufa'i surpassed the mighty Kano in tax revenue despite all its potentials. Kudos to governor El-rufa'i!

His Excellency governor Malam Nasir Ahmad El- rufa'i, CON, becomes a governor in 2015. He introduced "technology" and "innovations" in tax administration in Kaduna state without increasing taxes . He initiated Tax Codification and Consolidation Law 2016 whose main thrust is to eliminate multiple taxation, provide a clearer understanding of taxes and reduce the cost of compliance.Other important features of the Tax Code include the following: Empowering KADIRS as the sole revenue collection agency in the State. Prohibiting cash collection which helped to block revenue leakages. Providing multiple payment channels to ease compliance encumbrances. Reducing the number of levies, fees and other charges, especially at the local government level. Established a tax information and complaint office in all MDAs. Simplifying tax assessment for the informal sector etc.

In addition, he introduced : Treasury Single Account (TSA), Kaduna State Fiscal Responsibility Commission, (KSFRC), e-payment in all government dealings, taxpayers' audit, tax revenue payment automation to block leakages, Kaduna Geographic Information Service (KADGIS), Kaduna State Internal Revenue Service(KADRIS), Kaduna State Traffic Laws Enforcement Authority (KASTEA), Kaduna State Investment Promotion Agency (KADIPA), and revived Kaduna State Urban Planning and Development Authority (KASUPDA) etc.

Some analysts argued that Nigerians generally don’t pay tax which is why we don't express much anger against corrupt public officers. In Nigeria those who pay taxes are largely government and corporate bodies workers which are often deducted from the source. There are a lot of people in the "informal"sector who "earn" much more than many workers in both government and corporate bodies, but our respective states governments do not largely pay attention to them due to free oil revenue. Out of the over 200 million Nigerians only about 20million Nigerians pay tax. Prof. Osibanjo, the Vice President, in the 2018 edition of the Chartered Institute of Taxation of Nigeria (CITN) conference, said: "The nation had increased its tax net from 14 million in May 2017 to 19 million this year. (Premium Times, May 9, 2018).

In my thought, there is absolutely nothing wrong in paying taxes for as long as the government will use it for development. Tax payment is a civil duty for the citizens in returns for public service delivery. Public goods are provided using taxpayers' money. All we need to ask for and even insist on continuously is judicious use of our taxes. In my view, it would only be very wrong if our taxes are diverted to private pockets. The government at all levels must ensure prudent use of taxpayers' money in order to enjoy their continuous support.

Nigerians should not and or must not continue to live under the "illusion" that a state can only get huge taxes only when it has industries up and running. As states or regions we are endowed differently just as there are different kinds of taxations from where huge revenue might be generated. Let' us explore our individual potentials in our respective states. Apart from Company Taxes and VAT there are other kinds of taxations; such as: Personal Income Tax, Sales Tax, Excise Tax, Education Tax, Development Tax, Toll Tax, Capital Gains Tax, Ground Rent, Land Use Charge , and Property Tax, etc.

Let us ensure tax payment compliance and prioritised the expansion of tax "net" to increase the number of taxpayers and potential taxpayers. However, as taxpayers let us insist continually on transparent use of our money.

Thank you His Excellency governor Nasir Ahmad El-Rufa'i,CON. Accept my best wishes! 

May God bless Kaduna!

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