Recover N5.19trn taxes from MDAs, oil companies – Reps to FIRS

…Probe use of N200 billion on suspended 2023 census

By Abiodun OBA

The Federal Inland Revenue Service (FIRS) has been directed to recover all taxes totalling over N5.19trn owed the Federal Government by Ministries, Departments and Agencies, oil companies as well as individuals.

The House of Representatives gave the directive on Thursday.

The resolution followed the adoption of a motion moved by member representing Oredo Federal Constituency of Edo State, Esosa Iyawe on the floor of the house.

Leading the debate on the motion titled, “Alleged non-remittance and under-remittance of tax by Ministries, Departments and Agencies of government, oil companies and other organisations,” the Labour Party chieftain recalled that in 2021, “The FIRS revealed that the sum of N17. 69bn was owed in taxes by some companies, whose addresses were untraced till date, but no action was taken to locate or recover the funds.”

According to him, “Audit reports from 2015 to 2019 revealed government agencies owing hundreds of billions in FIRS taxes comprising underpayments and under recoveries and over 5,000 companies and MDAs of the Federal Government owing N5.2trn in withholding taxes.”

Esosa further argued that under-remittance and non-remittance of tax deprive the Federal Government of much needed funds to drive its policies for national development, stressing that if the situation is not urgently addressed, “The effect could be crippling on the country’s already dwindling economy.”

This is just as he maintained that small-scale businesses in Nigeria are frustrated by multiple taxation by the FIRS while “States and Local Government Authorities, multinational companies and other corporate organisations are getting the kid-glove treatment.”

Following the adoption of the motion, the House urged FIRS to embark on tax recovery drive while also mandating the Committees on Public Accounts and Finance to investigate the non-compliance on tax remittance by MDAs of government, Oil Companies and other organisations, “With a view to ensuring that all debts in taxes owed the Federal Government are duly recovered, and report back within four weeks for further legislative action.”

Meanwhile, the House has mandated its Committee on Population to investigate the use and management of 200 billion naira that was spent for the suspended 2023 population and housing census.

This followed the adoption of a motion moved by Hon Clement Akanni during plenary in Abuja.

Hon Akanni while moving the motion, stated that the need to provide the nation with accurate and reliable demographic data for policy formulation and planning for sustainable development could not be overemphasised.

He explained that the last census, which was conducted in 2006 by the National Population Commission, gave a population figure of 140 million and that the immediate past administration of former President Muhammadu Buhari planned to conduct another census in 2022, but the programme was later postponed to 2023.

Hon Akanni said, “Earlier in March 2023, the former Minister of State for Budget and National Planning, Clem Agba, said a total of N869 billion would be required for the exercise; this figure, according to the Minister, includes post-census activities.

“The National Population Commission (NPC) says it has spent about N200 billion to prepare for the 2023 population and housing census. A census is a process of systematically collecting, compiling, and analysing demographic, social, and economic data about a population within a specific region.

“Also note that censuses are conducted by governments to gather accurate and comprehensive information such as age, sex, marital status, education, occupation, housing, and other relevant demographic and socioeconomic characteristics of a country.

He further explained that the collected data is used for a wide range of purposes, including policy-making, resource allocation, urban planning, public health, education, and more.

“Disturbed that the exercise was, however, suspended indefinitely by former President Muhammadu Buhari a few days before leaving office.

To this end, the House referred the motion to its committee on population census and report back within four (4) weeks for further legislative action.