FIRS warns MDAs to stop spending revenues at source

The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr Muhammad Nami, has launched a national tour of the six geo-political zones to sensitise the nation, especially taxpayers, on the 2019 Finance Act.

The Executive Chairman, Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami, has cautioned Ministries, Departments and Agencies MDAs to desist from spending at source revenues collected on behalf of the Federal Government.

Speaking when the Niger State Governor, Alhaji Abubakar Sani-Bello, called on him at the FIRS head quarters in Abuja, Nami said doing so was detrimental to national development.

According to him, the global best practices is for all MDAs to remit all collected government revenues to the Federation Accounts from where they are disbursed back to the MDAs through budgetary allocations as provided for in the national, state and local government development plans.

The FIRS boss said: “Revenue generating Ministries, Departments and Agencies (MDAs) should stop spending money generated for the Federal Government at source. The practice whereby MDAs spend the revenue generated and only send what is left or their surplus to Federation Accounts hinders national development plan.

“The best practice is for the generated revenues to be remitted in total to the Federation Accounts first. This should include their statutory share of the collected revenue. The total amount due to them will still come back to them through budgetary provisions.

“This is what we do at the FIRS. We remit everything we collect directly to the Federation Accounts first and our statutory 4% share of non-oil tax comes back to us through budgetary allocations.

“State and local government agencies which generate revenues should also adopt this arrangement for proper accountability, fiscal discipline and rapid development.”

Governor Sani-Bello, who was accompanied by a large entourage of Niger State officials, elected members representing the state at the National Assembly and other eminent personalities from the state, including the Emir of Agaie, Alhaji Yusuf Nuhu, expressed confidence in Mr. Nami to deliver the N8.5 trillion tax revenue target set for the FIRS by the Federal Government in this fiscal year.

The governor asked Mr. Nami who ils from Nigeria State to help the State to improve on its internally generated revenue (IGR) profile through a synergy between the state and the FIRS, a request which the FIRS chief acceded to by promising to help boost the capacity of officials in the Niger State revenue generating agencies in order to hit a commendable level of IGR.

Nami expressed his deep appreciation to Governor Sani-Bello and his entourage for the honour done to him with the visit as a fellow Nigerlite, assuring them that he would do his best on this national assignment at the FIRS and not disappoint them.

Get more stories like this on Twitter and Telegram

Recommended Stories