Heads may roll at FIRS as new boss sets N17trn target for 2020

THE executive chairman of the Federal Inland Revenue Service (FIRS) Muhammed Nami, has hinted of a possible staff rationalisation exercise in view of persistent failure to meet revenue target since 2012.

He has, therefore, told workers of the revenue agency to generate at least N17 trillion in 2020.

A comparison of staff trajectory since 2012 and revenue collection target showed that average collection per staff declined from N718.2 million to N530 million in 2019.

A memo to each of the staff members dated December 23, 2019 personally signed by Nami indicated that while 8,265 workers collected N5.07 trillion, surpassing target by N1.3 trillion in 2011, 9,448 staff collected N5 trillion in 2019.

He reminded the workers that as a result of their “uncommon” commitment to duty, in 2012 especially, you were able to raise five trillion, seven billion Naira, even without active participation of consultants and with moderate inflation and exchange rates.

“I want to be positive that this impressive performance is achievable again.

“However, the table below shows the review of performance and workforce of the service from 2011 to 2019.

“It should be pondered upon during the holiday so that you would resume refreshed and better prepared to serve,” he said.

According to him, “despite the rise in service workforce, the engagement of consultants, the rise in inflation and the exchange rates, the tax revenue collection continues to dwindle as shown in this table.”

Nami implored the staff “to take advantage of the current staff-friendly environment now in place to reverse the obvious downward trend to ensure that the current target is not only achieved but also doubled before the end of 2020.

“No doubt the task is daunting but with dogged spirit, integrity, probity and accountability as well as the resolve not to negotiate with taxpayers and pocket the revenue due to the Federal Government, the current challenges can be surmounted and our ambitious target achieved or surpassed.”

He commended the workers for demonstrating doggedness and uncommon commitment to duties even in the face of unpleasant work environment.

“I commend you all for displaying this spirit of steadfastness, resilience, perseverance, and deftness in the discharge of your assigned responsibilities,” Nami said.

On August 8, President Muhammadu Buhari, through his Chief of Staff, Mr Abba Kyari, queried the immediate past FIRS chairman, Babatunde Fowler, over worsening tax collection since 2015.

Kyari said the presidency “observed significant variances between the budgeted collections and actual collections for the period 2015 to 2018.”

In 2015, FIRS set N4.7 trillion target but was only able to make N3.7 trillion in the actual collection. In 2016, 2017 and 2018, the target collections were N4.2 trillion, N4.8 trillion and N6.7 trillion but the actual collections were N3.3 trillion, N4.0 trillion and N5.3 trillion, respectively.

“Accordingly, you are kindly invited to submit a comprehensive variance analysis explaining the reasons for the variances between the budgeted collections and actual collections for each main tax item for each of the years 2015 to 2018.

“Further we have observed that actual collections for the period between 2015 and 2017 were significantly worse than what was collected between 2012 and 2014. Accordingly, you are kindly invited to explain the reasons for the poor collections,” Kyari wrote.