Lagos – The Federal and other State
Governments have been urged to emulate Lagos' tax-collection system to boost
A leading local bank, First Bank of Nigeria (FBN),
commenced the Lagos’ revenue collection agency after it was disclosed the
state’s revenues soared from N600 million per month in 1999 to N23 billion in
“The Lagos State Internal Revenue Service provides a
blueprint of how to get the job done,” FBN Capital stated on Thursday.
FBN said the agency deployed a combination of strict
enforcement, steps to make it easier to pay taxes and public relations.
“It deliberately targeted the big earners first for the
example set to low-income Lagosians, and closed down a well-known electronics
market when it found the occupying companies were not paying their dues. (They
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The commendable rating of the Lagos State Internal
Revenue Service coincided with revelations the total monthly payout by the
Federation Account Allocation Committee (FAAC) to the three tiers of government
in February (from January revenues) declined marginally to N370 billion from N388 billion the previous month.
The net distribution from the federation account and the
value-added tax pool combined is projected at N5,72 billion this year in the
expenditure framework for 2016-18.
The payout in both January and February fell short of the
projected pro rata monthly average of N477 billion.
FBN noted there were initiatives underway to boost
revenue collection from the non-oil economy.
These include the Treasury Single Account, a review of
waivers and exemptions, computerization, efficiency gains and recoveries
(broadly defined by ourselves to include fines).
“These initiatives will bear fruit over time. We
are therefore unlikely to see much impact until H2 (second half) 2016,” FBN
- CAJ News