FIRS Blames Tax Waivers, Illicit Financial Flows for Underperformance

James Emejo

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Muhammad Nami yesterday identified nondiscretionary tax waiver grants, illicit financial flows abroad and high overhead costs as major reasons for the failure of the agency to meet its tax revenue targets in recent times.

Speaking during the Senate’s interactive session with revenue generating agencies aimed at improving the internally generated revenue (IGR) of the federal government through non-oil revenue sources, Nami said the country loses a lot of revenue through tax waivers granted to major companies.

Nami said:“Nigeria loses a lot of revenue through tax waivers granted to big companies, which otherwise would have been taxed to buoy up government revenue. Also, illicit financial flow is a major cause of revenue loss to Nigeria.

Coupled with this is the operational cost of the FIRS which is also high compared to the statutory provisions for the running of the organization.

“I am new in the FIRS but upon my assumption of office, I have discovered that these, among other factors, contributed to making the FIRS unable to meet its target in recent times.”

The FIRS boss consequently canvassed better official discretion in granting tax waivers, assuring that he is working hard in collaboration with relevant government agencies to stem illicit financial flow, especially via profit shifting by multinationals operating in the country.

In a statement issued by Director, Communications and Liaison Department, FIRS, Mr. Abdullahi Ismaila Ahmad, Nami further urged the National Assembly to assist the agency in this regard in order to increase government revenue towards the modernisation of public infrastructure in the country.