Minister of State for Budget and National Planning, Prince Clem Ikanade Agba, has stressed the need to grow the nation’s revenue base to accommodate the ever increasing population.
Prince Agba, who made the call in Lagos on Monday at the signing of the Memorandum of Understanding (MoU) between the Federal Inland Revenue Service (FIRS) and the Lagos State Internal Revenue Service (LIRS), said with the current low revenue to GDP of 6% generation there was already a strain on available resources and infrastructure, and more resources and infrastructure were needed to accommodate the young and booming nation’s population.
“There is therefore an increasing need to grow the revenue of Nigeria for government at all levels to meet its obligation to the citizenry.
“Every economy, including that of Nigeria, needs an efficient tax system to thrive. Nigeria runs a Federal system of government, so Nigeria needs its tax system to be efficient at all levels, as one level alone cannot reform the entire tax system in the country,” the minister noted.
He emphasised that the collaboration between the revenue authorities was highly commendable and a welcome development for tax administration in Nigeria.
He urged more states to follow in the steps of Lagos State and increase its collaboration with FIRS, adding it was a laudable initiative.
“Lagos state is Nigeria’s business hub and presently boasts the largest tax revenue collection among the States. However, I believe that this collaboration will bring more benefits to the State in the area of revenue generation, as it seeks to prevent revenue loss through tax evasion and avoidance and improve voluntary compliance.
“May I take this opportunity to assure you of the Federal Ministry of Finance’s unequivocal support of this collaboration. We will gladly offer our assistance where needed.
“We indeed look forward to a brighter future for the Nigerian tax system and the continued growth of our economy.”
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