TIN will reform tax administration in Nigeria- Sanwo-Olu

Benjamin Omoike, Lagos

Lagos state Governor, Babajide Sanwo-Olu has stated that the new joint tax board, new national tax identification number and registration system are a welcome addition to other reforms focused on taking identity management and tax administration in Nigeria to the next level.

Gov. Sanwo-Olu made this disclosure on Thursday during the official flag-off of the joint tax board at the Civic Centre, Victoria Island.

According to him, identity management has and is still a major challenge in virtually all spheres of activities in the country and tax administration is no exception, stressing that it is therefore not surprising that many states including Lagos have tried to address the issue through one scheme or the other.

The reality, however, he said, is that no matter how sophisticated or cutting-edge these sub-national schemes are they are sub-optimal and most likely, lack cross-border acceptability and recognition.

“The new JTB national TIN registration system is a welcome addition to a slate of reforms focused on taking identity management and tax administration in Nigeria to the next level.

It is generally agreed that Nigeria’s tax revenues continue to under-perform their actual potential. In fact, our tax-to-GDP ratio is one of the lowest in the world at less than 70 per cent.

This is considerably low even by the standards of similarly emerging economies.

“It thus goes to show that there is still a lot of room for improvement and this laudable initiative we are flagging off today will go a long way towards bridging this deficit by capturing eligible tax payers within the tax net.

With improved tax revenues, the government can begin to wean itself from an overdependence on crude oil earnings. We in Lagos very much understand the importance of this.

“The overwhelming success of our tax collection drive over the last 20 years has helped in no small measure to insulate us from the worst effects of the decline in FAAC allocations arising from the 2014 crash of global crude oil prices. Many other states were not as fortunate,” he said.

Sanwo-Olu added that more importantly, government recognises that as the level of tax compliance rises, citizens are more inclined to hold their governments accountable and demand a higher quality of governance and service.

“It suffices to say that an improved tax collection and tax compliance drive is a win-win for the government and the governed.

Citizens everywhere in the world are constantly seeking easier ways of engaging with their governments and fulfilling their civic responsibilities.

It is the duty of governments to respond to this need, by removing barriers that inhibit compliance,” he added.

He said if government wants citizens to be compliant and pay their taxes, it is incumbent on it to make it easier for them to do this. Technology, he emphasised, remains the most important tool to actualise this.