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FIRS Generates N4.9trn from Taxes in 2021
By Tony Obiechina, Abuja
The Federal Inland Revenue Service said it generated the sum of N4.9trn between January and November, 2021 from taxes for the Federation.
Out of the N4.
9trn collected since the beginning of the year, 77 per cent representing N3. 77trn was from non-oil sources, while oil revenue is 23 per cent or N1. 23trnThe Service also unveiled its contact centre for taxpayers to access services of the agency by speaking with a call centre agent in various Nigerian languages to resolve identified challenges.
The Executive Chairman of FIRS, Mr.
Muhammad Nami, stated this on Monday in Abuja at a National Symposium on “Taxation and Challenges of External Shocks: Lessons and Policy Options for Nigeria.”The event was organised by the FIRS in conjunction with the Usmanu Danfodiyo University, Sokoto.
Nami said FIRS will henceforth go through the Ministry of Finance, Budget and National Planning to ensure that all government revenue is included in the accounting for taxes generated.
The FIRS system, he stated, will now simultaneously indicate the amounts invested by taxpayers in road infrastructure which is consistent with executive order 007.
The FIRS boss said, “For the country to achieve meaningful and sustainable growth in tax revenue, and minimize our dependence on oil revenue, there is the need for continuous reform of our operations and processes, of our human capital development, the adoption of technology, and the tax laws.
“These key areas have remained paramount to the current Board and Management of the Service. And the achievements we have recorded in improving and sustaining the revenue growth since 2020 to date irrespective of the challenges posed by the Covid-19 can be attributed to these reform initiatives”.
He said the system would also show the tax waivers granted pioneer companies, import and excise duties waived through the operations of the Nigeria Customs and all other revenues generated by Ministries Departments and Agencies (MDAs) on behalf of the Federal, State and Local governments in Nigeria.
According to him, the measures, when implemented, will align Nigeria with global best practices in reporting public finance and guarantee a more transparent and more accurate picture of the country’s Tax-to-Gross Domestic Product ratio.
The FIRS Boss said the move would also help ensure that all government revenue is included in the fiscal accounts and annual statistics of the FIRS.
David Adejoh, who represented the Secretary to the Government of the Federation, Boss Mustapha, said that the time has come for Nigeria to strongly harness all non-oil revenue sources, especially now that the rampaging COVID-19 crisis has crashed the demand for petroleum products.
“We need to seek other sources of revenue besides oil to avoid a looming fiscal crisis that can decapitate the economy.
“Tax Pro Max has really helped in revenue generation, but our tax to GDP ratio is still low at six per cent; lower than some African countries and efforts should be made to improve it”, he added.
In her keynote address on Taxation and the Challenges of External Shocks: Lessons and Policy Options for Nigeria, a former Executive Chairman, FIRS, Mrs Ifueko Omogui Okauru urged the FIRS to allow companies to carry out a self-audit and remit the taxes they feel is appropriate, while the agency works out ways to ascertain whether the money was inadequate or not.
According to her, this was better than not collecting any revenue whenever there is a tax dispute with evaders.
Meanwhile, the National Bureau of Statistics (NBS) says the total value-added tax
(VAT) collected on behalf of the federation decreased by N11.75
billion within three months to N500.49 billion in the third quarter of 2021.
This was contained in its latest report released yesterday.
VAT is a consumption tax that is administered by the Federal Inland Revenue Service (FIRS).
In the last quarter, VAT collection amounted to N512.25 billion.
Year-on-year, there was an improvement in the collection as the FIRS collected N496.39 billion, N512.25 billion and N500.49 billion in the
first, second and third quarters of 2021.
This is higher compared to the corresponding figures of 2020 at N324.58 billion, N327.20 billion and N424.71 billion, respectively.
It shows growth rates of 52.93 percent in Q1 2021, 56.56 percent in Q2 2021 and 17.84 percent in Q3 of 2021.
Further analysis shows that in Q3 2021, the manufacturing activity; information and communication activity; and mining & quarrying activity accounted for the top three largest shares of total revenue
collected sector-wise, representing 30.87 percent (N91.2 billion), 20.05 percent (N59.3 billion), and 9.62 percent (N28.4 billion),
respectively.
On the flip side, activities of extraterritorial organisations and bodies generated the least VAT in the quarter under review with N20.15
million. This was followed by activities of households as employers, undifferentiated goods and services (N90.83 million) and water supply, sewerage, waste management and remediation activities (236.75
million).
Nigeria had raised its VAT rate from 5 percent to 7.5 percent in 2020—but the International Monetary Fund (IMF) had also advised that the
rate should be increased to at least 10 percent by 2022.
On the other hand, first and second quarter 2021 Company Income Tax (CIT) collections were N392.65 billion and N472.07 billion,
respectively, higher than the corresponding quarter of last year.
By the third quarter of 2021, this has increased to N472.52 billion, yet higher than Q3 of the previou
Business News
DBN Signs $61m Credit Deal With AfDB, Unveils Support Initiative Report
By Tony Obiechina, Abuja
The Development Bank of Nigeria Plc (DBN) has launched DAWN: DBN Action for Women in Nigeria, unveiled its Impact Report and presented MSME Data Assets at the seventh edition of Annual Lecture held in Abuja.
DBN, in a statement on Thursday, said while delivering a welcome address, its Managing Director and Chief Executive Officer, Dr Tony Okpanachi, said the central challenge was no longer reforms themselves but ensuring benefits reach businesses at end of the chain.
He asked how to make sure benefits reach traders in Onitsha, fabricator in Aba, farmer in Kebbi and young founder in Yaba, noting that MSMEs accounted for about half of Nigeria’s GDP and more than eight in every ten jobs, adding that when reform works for MSMEs it works for most Nigerians.
He explained that reform becomes prosperity only when entrepreneurs can act on it whether through long tenor loans to buy equipment, banks willing to take risk or skills and records needed to grow.
He said working through Participating Financial Institutions DBN provides longer term funding, partial credit guarantees through subsidiary Impact Credit Guarantee Limited and capacity building including Entrepreneurship Training Programme.
He disclosed that as at December 2025 DBN had disbursed a cumulative N1.4 trillion to MSMEs through 84 Participating Financial Institutions creating about 1.6 million jobs nationwide.
Under the new five year strategy, the Bank aims to reach more than two million MSMEs with deliberate targets for women led businesses, youth led businesses and underserved states.
On DAWN, Okpanachi said finance alone had not enabled enough women-led businesses to scale.
He said initiative brings together financing, guarantees and credit support, technical assistance, outcome linked grants and market linkages delivered through banks, microfinance institutions, fintechs, aggregators, cooperatives and direct channels.
Its priority sectors are agriculture and exports, healthcare, arts and creatives, technology and green business.
He said DAWN is about moving gender focused lending beyond intention and turning access into opportunity.
On the sidelines of the lecture DBN and African Development Bank held a signing ceremony of AfDB DBN 61 million United States dollars Gender Line of Credit development that reinforces Bank commitment to women led enterprises.
Okpanachi urged Participating Financial Institutions to extend lending into sectors and states where access to finance has been limited, policymakers and regulators to measure reform by what changes for business at end of chain and MSMEs to formalise, keep good records and use support now available.
The Vice President as Special Guest of Honour was represented by Dr Fred Iklaga Senior Technical Adviser in the Office of Special Adviser to the President on Economy.
Keynote speakers were Chief Executive Officer of MTN Nigeria, Dr Karl Toriola, and Chairman of Nigeria Sovereign Investment Authority, Dr Segun Ogunsanya.
Fireside chat featured Chief Executive Officer of Sterling Bank Abubakar Suleiman, manufacturing and trade entrepreneur Mrs Omoyemi Chukwurah and by video Kola Masha of Babban Gona.
The Secretary to the Government of Federation, represented by Augusta Warren Bekaredebo, said 2026 tax reforms would bring relief to many small businesses expressing optimism that a lot of businesses will be smiling by next year because they will be exempted from tax.
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NLC Threatens Nationwide Action as Talks With FG Collapse
By Tambaya Julius, Abuja
The Nigeria Labour Congress (NLC) has threatened possible nationwide industrial action following the failure of talks with the Federal Government over workers’ welfare, petrol prices and other outstanding labour demands.
The warning came after a meeting between the government and organised labour at the Ministry of Labour in Abuja on Thursday, October 22, ended without an agreement.
The congress has given the Federal Government until Tuesday, October 27, to make meaningful progress on the issues, warning that its relevant organs would decide the next line of action if the next meeting fails to produce concrete commitments.
The NLC has also directed its affiliates, state councils and civil society allies to begin mobilising members for possible nationwide action.
In a statement issued after the meeting, the NLC Acting General Secretary, Benson Upah, expressed disappointment over what he described as the government delegation’s lack of preparedness for the negotiations.
According to the congress, organised labour presented its demands in good faith but left the meeting without any concrete commitments from the government.
The demands include a reduction in petrol prices to 2024 levels, renegotiation of the national minimum wage, implementation of agreed tax relief measures and resolution of the terms of settlement involving the Joint Health Sector Unions (JOHESU).
The congress also called for the resolution of issues raised by the Joint Public Service Negotiating Council (JPSNC) over peculiar allowances, wage awards and hazard allowances.
The NLC said the government delegation lacked the necessary authority to engage meaningfully on the issues presented by labour representatives.
“The meeting between the Federal Government and organised labour, convened at the Ministry of Labour in Abuja on 22nd October 2026, has ended without resolution,” the statement said.
It added that the Minister of Labour requested that the meeting be adjourned until October 27 to allow the government to prepare adequately for further discussions.
The preparations, according to the statement, would include bringing relevant ministers and heads of departments and agencies to the negotiating table.
The congress said it remained open to dialogue but would not accept continued delays in addressing workers’ concerns.
“We will report back to our organs, and if no meaningful progress is made on Tuesday, the relevant organs of the NLC will decide the next line of action,” it said.
The labour body urged workers and members of the public to remain calm while the negotiations continue, even as it directed its affiliates and allies to prepare for possible industrial action.
“However, we urge all affiliates of NLC and TUC; all state councils and our civil society allies to be alert and start mobilising for a possible action across the nation while we hope that the tenets of our demands are met by the government,” the statement added.
The October 27 meeting is expected to provide another opportunity for both sides to address the outstanding issues and prevent a possible escalation of the dispute.
However, the NLC’s decision to begin mobilisation suggests that tensions could rise if the next round of talks fails to produce meaningful progress.
COVER
Election Campaigns: FRSC Bars Officers from Politicians’ Escort
The Federal Road Safety Corps (FRSC) has barred its personnel from escorting politicians during campaigns for the 2027 general elections.
Zonal Commanding Officer, RS6, ACM Abimbola Owolabi, gave the directive during her maiden visit to the Cross River Command in Calabar on Wednesday.
Owolabi said patrol vehicles and sirens must not be used for political activities or private engagements, including weddings and funeral processions.
She directed officers deployed to campaign venues to focus exclusively on traffic management to prevent congestion and road crashes.
The zonal head warned personnel against leading political convoys or providing escorts for politicians, stressing that official vehicles must not be used for unauthorised purposes.


