FCT, NRS move to end multiple taxation, push digital revenue system in Abuja

The Federal Capital Territory Internal Revenue Service and the Nigeria Revenue Service have moved to end multiple taxation and deploy a digital revenue system in Abuja, pledging stronger coordination to harmonise collections and improve compliance across the capital.

Speaking at the stakeholders engagement forum themed “Harmonizing Revenue Systems and Implementing New Tax Laws” in Abuja, the Acting Chairman of the FCT-IRS, Michael Ango, explained that the objective of the reform is to streamline revenue collection to create a more efficient and unified system without taking over the statutory roles of other authorities.

Ango explained that the goal is not to strip Area Councils of their responsibilities but to ensure that revenue due to each tier is properly credited in line with the Constitution while eliminating duplication and informal levies.

He noted that as the nation’s capital, the FCT must operate in a way that projects Nigeria positively and provides a conducive environment for residents and businesses, stressing that a fragmented tax system undermines that objective.

Advertisement

According to him, the broader vision is to build a livable city ahead of the FCT’s 50th anniversary in 2026, with improved revenue funding critical infrastructure such as roads, hospitals, schools and bridges.

“Harmonisation of tax system simply means streamlining or creating a more efficient system for collecting taxes or revenue in the future.

“When we talk about harmonisation, we are not trying to take over anyone’s responsibilities. We are saying that we want to create a system that ensures efficiency in revenue collection.

“At the end of the day, revenue will still grow as provided by the Constitution, and everyone’s revenue will still be credited appropriately. We are simply working towards a unified system for revenue collection in the future.” he said

Advertisement

He commended the Minister of the FCT, Nyesom Wike, for what he described as decisive infrastructural investments recorded in the territory since 2023.

“For us as a revenue authority, our real vision is to provide funding for the FCT so that we can have good roads, hospitals, schools, bridges, and other infrastructure that citizens can use.” He said

Ango disclosed that revenue performance in the early months of the year had risen significantly, revealing that collections were about five times higher than what was realised in the same period last year, although he said detailed figures would be presented at a later briefing.

On the domestication of new tax reform laws, he said timelines rest with the legislature, adding that the executive would continue to engage lawmakers to ensure that necessary legal frameworks are put in place to strengthen revenue administration in the FCT.

Advertisement

Also speaking, the Executive Chairman of the Nigeria Revenue Service, Dr Zach Adedeji, represented by Segun Adeshokun, described the engagement as timely and strategic, aligning it with the ongoing fiscal reforms of President Bola Ahmed Tinubu aimed at repositioning Nigeria’s domestic revenue architecture for sustainability, efficiency and equity.

“The ultimate success, however, rests not merely on the legislative enactments, but on effective implementation, particularly at the sub national level, where policy translates into real interaction with citizens and businesses.”

Adedeji stressed that legislative reforms alone would not guarantee success, noting that effective implementation at the sub national level is crucial since that is where citizens and businesses directly interact with revenue authorities.

He warned that fragmented revenue systems, illegal roadblocks, unauthorised collections and indiscriminate sale of stickers and emblems erode public confidence, increase the cost of doing business and fall short of the standards expected of a modern capital city in Nigeria.

The NRS boss advocated a coordinated framework involving the FCT Administration, the FCT-IRS and Area Councils, built on clear delineation of functions, shared data systems, uniform compliance protocols and structured information exchange to eliminate overlaps.

Both revenue chiefs underscored the need for technology driven administration, including integrated taxpayer databases, electronic payment platforms and real time reporting systems, arguing that digital tools would curb leakages, strengthen audits, enhance transparency and ultimately deliver a predictable and sustainable revenue base for the Federal Capital Territory.