Nigeria is in a revenue crisis due to its massive public debt – Adedeji

Dr. Zacch Adedeji, the newly appointed head of the Federal Inland Revenue Service (FIRS), declared yesterday that the country is experiencing a revenue crisis and that immediate action is needed to shift public perception.

Adedeji made this statement as he assumed control of the organisation from his predecessor, Muhammad Nami. He emphasised that the situation is unsustainable and pointed out that 96% of Federal Government revenue was used to service debt last year.

The FIRS reportedly collected N8.5 trillion in revenue into the federation account as of mid-September, according to Nami, the former chairman of the revenue agency.

Remember that one of the main reasons the government eliminated the subsidy on petrol was a lack of funding for national operations.

“We are in a revenue problem,” declared Adedeji. “Government revenue is low while there is a significant public debt.
96% of the government’s income last year was used to pay down debt.

“Immediate actions must be taken to correct the situation where debt has grown larger than the GDP, debt servicing has outpaced revenue, and debt servicing has outpaced GDP.”

When asked about his plans to maximise revenue collection, he stated: “In this area, therefore, we will key into the changes being undertaken by President Bola Tinubu who has since created a Presidential Fiscal Policy and Tax changes Committee.

“Among other things, the committee’s duty is to develop an efficient plan for fiscal policy execution and tax reforms for economic success.

As the principal government body in charge of the administration, assessment, collection, accounting, and enforcement of taxes and levies, the FIRS will support efforts to create a clean fiscal landscape for the nation and, in the process, address some of the challenges preventing efficient service delivery.

We must innovate, base our operations on reliable technology, and develop a centre for original thought and creativity.

The new tax-master promised to close loopholes in the system in order to collect full tax income for the government.

“Leaks must be sealed, without a doubt. Our internal systems and checkpoints need to be strengthened. He said, “We must place a high value on the efficient coordination of assigned activities and delegated duties.

Adedeji claimed that he will encourage taxpayers to voluntarily comply with their obligations because, in his words, his staff will include stakeholders and educate them on the value of voluntary compliance.

“Don’t shove it down stakeholders’ throats,”

“Under me, we will not shove things down the throats of our stakeholders,” he declared. In order to jointly create a tax administration that we can all be proud of and that has everyone’s faith and confidence, I will always be prepared to interact with them, work with them, and through them.

“Generally speaking, we intend to develop a menu of tactics that will encourage voluntary payment of taxes and levies.”Yes, this is feasible because Nigerians recognise that the government needs to increase its revenue in order to be able to fulfil its duties to them.

By doing this, we will create a tax system that is clever, contemporary, and unquestionably honest, and we will win the respect and trust of all stakeholders.