Home Business Stop spending IGR on your personal needs, FIRS boss charges MDAs

Stop spending IGR on your personal needs, FIRS boss charges MDAs

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The Executive Chairman, Federal Inland Revenue Service (FIRS), Muhammad Nami, has urged revenue-generating Ministries, Departments and Agencies (MDAs) to stop spending revenues collected on behalf of the Federal Government on their personal needs, stressing that doing so stagnates national development.

According to Nami, the global best practices are for all MDAs to remit all collected government revenues to the Federation Accounts from where they are disbursed back to the MDAs through budgetary allocations as provided for in the national, state and local government development plans.

The FIRS boss stated this during the week in Abuja during a courtesy call on him by the Executive Governor of Niger State, Alhaji Abubakar Sani-Bello, a statement by the Director, communications of the FIRS, Abdullahi Ismaila, stated.

“The practice whereby MDAs spend the revenue generated and only send what is left or their surplus to Federation Accounts hinder national development plan, as the best practice is for the generated revenues to be remitted in total to the Federation Accounts first.

“This should include their statutory share of the collected revenue. The total amount due to them will still come back to them through budgetary provisions.

“This is what we do at the FIRS. We remit everything we collect directly to the Federation Accounts first and our statutory 4% share of non-oil tax comes back to us through budgetary allocations.

 “State and local government agencies which generate revenues should also adopt this arrangement for proper accountability, fiscal discipline and rapid development.” He further highlighted.

 Governor Sani-Bello who led lawmakers, traditional rulers and other state government delegation on the visit, expressed confidence in Nami to deliver the N8.5 trillion tax revenue target set for the FIRS by the Federal Government in this fiscal year.

The governor asked Nami to help Niger State to improve on its internally generated revenue (IGR) profile through a synergy between the state and the FIRS, a request which the FIRS boss acceded to by promising to help boost the capacity of officials in the Niger State revenue generating agencies in order to hit a tangible level of IGR.

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