At the inaugural Revenue Assurance Summit held in Abuja, Mrs. Hafsat Bakari, the Chief Executive Officer of the Nigerian Financial Intelligence Unit (NFIU), emphasized the prevalence of tax evasion at the state level, highlighting it as a significant challenge for revenue generation in Nigeria. The summit gathered various representatives from the Internal Revenue Services across states and the Federal Capital Territory to initiate collaborative discussions aimed at overcoming these hurdles. Bakari mentioned that while the NFIU initially concentrated its efforts on assisting the Federal Inland Revenue Service (FIRS), it has since widened its focus to include state-level agencies. This strategic pivot is rooted in findings that indicate a disproportionate amount of tax evasion occurs at the state level, suggesting that localized tax jurisdictions may require more robust oversight and innovative approaches to tackle the issue effectively.
The NFIU is undertaking significant measures to combat tax-related offenses, capitalizing on its extensive data on financial transactions. Bakari detailed how the intelligence derived from this data could greatly enhance the operational efficiency of State Internal Revenue Services. The collaborative approach facilitates a more integrated framework for the collection and analysis of tax-related data, which in turn can help create a more accountable and transparent fiscal environment. Bakari’s remarks underscored the importance of leveraging intelligence in financial reporting to detect and deter tax evasion, reaffirming the role of the NFIU as a pivotal player in Nigeria’s fight against fiscal crime.
In line with these efforts, Bakari introduced the Crime Records Information Management System (CRIMS), a digital platform enabling the secure exchange of intelligence between the NFIU and state revenue services. With the implementation of CRIMS, traditional paper records, which pose risks of data loss or compromise, have been entirely eliminated, thereby enhancing security and accountability. The system incorporates robust audit mechanisms allowing authorities to track data requests, ensuring transparency in the handling of sensitive information. By digitizing and safeguarding financial intelligence, the NFIU aims to improve cooperation among tax bodies, streamline processes, and ultimately facilitate more effective tax collection efforts across states.
The summit also featured remarks from Taiwo Oyedele, the Chairman of the Presidential Fiscal Policy and Tax Reform Committee, who addressed the critical issue of inter-agency collaboration. He pointed out that some government agencies engage in practices that hinder data sharing, which is essential for comprehensive tax administration. Oyedele highlighted a worrying incident reported by the Executive Secretary of the Joint Tax Board, which involved a request for payment for access to vital data. He criticized such behavior and emphasized the necessity for seamless data interchange among governmental units to bolster revenue generation. His comments reinforced the overarching goal of establishing a cooperative framework that promotes shared responsibility in tax administration.
In response to these challenges, Oyedele announced plans for regulatory measures that would impose sanctions on government agencies that refuse to cooperate or share data. He warned that a law is in development to criminalize the act of data hoarding, reflecting a firm stance against obstructions to transparency and collaboration. By proposing a protocol with clear timelines for data release—set at 48 hours—he indicated a shift toward stricter accountability for agencies that hesitate to engage constructively. This initiative signifies a serious commitment by the government to ensure that all revenue-generating bodies work in unison to enhance Nigeria’s overall fiscal health.
Ultimately, the initiatives discussed at the Revenue Assurance Summit illuminate the critical nexus between effective governance, data sharing, and enhanced revenue generation in Nigeria. The collective efforts of bodies like the NFIU, the Federal Inland Revenue Service, and individual state revenue agencies highlight a commitment to fostering an environment of cooperation and accountability. As the nation grapples with the challenges of tax evasion and revenue shortfalls, this multi-faceted approach, characterized by improved intelligence sharing and a focus on compliance, is fundamental to realizing the government’s fiscal objectives and building a more robust economy.
