By Mohammed Bello Doka
In a bid to revolutionize taxation and revenue management in Nigeria, the Federal Government is initiating a sweeping reform agenda centered around the establishment of a single window system. This system, slated to be managed by the Federal Inland Revenue Service (FIRS) and housed within the Central Bank of Nigeria (CBN), aims to address longstanding challenges in revenue collection and fiscal transparency.
Zach Adedeji, an Executive Chairman at FIRS, shed light on the pressing need for reform, underscoring the difficulty in verifying the major costs of sales for companies. He emphasized that inflated costs lead to reduced profits and tax evasion, posing a significant hurdle to effective revenue generation. Adedeji articulated that the proposed single window system would serve as a comprehensive platform for monitoring imports and exports, providing real-time data on trade activities to facilitate accurate revenue assessment and collection.
Central to the reform agenda is the call for the CBN to assume a more central role as the fiscal agent of the Federal Government. Adedeji urged for all revenues to be channeled directly into the CBN, streamlining the collection process and minimizing bureaucratic inefficiencies. Furthermore, he advocated for expenditures to be disbursed directly from the CBN to beneficiaries, eliminating the need for intermediaries and enhancing accountability in public spending.
The proposed overhaul signifies a paradigm shift in Nigeria's approach to taxation and revenue management. By centralizing oversight under FIRS and CBN, the government aims to enhance transparency, curb revenue leakages, and bolster economic development initiatives. The adoption of a single window system promises to usher in a new era of efficiency and accountability in Nigeria's fiscal landscape, laying the groundwork for sustainable growth and prosperity.
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