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Multiple Taxation: FIRS Partners MATAN For VAT Remittance From Informal Sector

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By Ladi Patrick Federal Inland Revenue Service, FIRS, is partnering with the Market Traders Association of Nigeria, MATAN, in collection and remittance of Value Added Tax, VAT, to the FIRS from the country’s markets, especially in the informal sector.

FIRS stated this in a press statement signed by Johannes Oluwatobi Wojuola Special Assistant to the Executive Chairman on Media and Communication and made available to Aljazirah Nigeria in Abuja.

The Association which has a membership of well over 40 million traders across the country’s 774 local governments, and 36 States plus the Federal Capital Territory is the biggest player in Nigeria’s market space.The details of the FIRS’ partnership with MATAN was disclosed yesterday at a Stakeholders Engagement Programme on the VAT DIRECT Initiative, held in Lagos State.

The partnership will see the FIRS collaborating with the association to deploy technology to enumerate traders for collecting and remitting VAT to the Service, consequently leading to an expansion of the tax net and increased revenue for the Federation.

The VAT DIRECT Initiative, VDI, is a program designed to foster collaboration between the FIRS and the market place, especially the informal sector, in the collection and remittance of the Value Added Tax, VAT, using technology. 

Speaking during the Stakeholder Engagement, Mr. Muhammad Nami, Executive Chairman FIRS highlighted that the initiative was the first of its kind, and that it was crucial to revenue generation and also to eliminating multiple taxation, especially from the informal sector.

The Executive Chairman, FIRS who is also the Chairman of the Joint Tax Board, JTB, further stated that the government is worried about the multiplicity of taxes, and that the Service and JTB were working on various modalities of addressing this challenge and that this partnership has laid a very good foundation for the government to address the issue of multiple taxation and extortion by tax officials, tax agents and touts in the market place.

 He further noted that the Service would collaborate with security agencies, especially the Nigeria Police, to deal with illegal tax collection by touts in markets. 

“One important area of our collaboration is the issue of providing adequate security in the markets. We are aware of the challenges that you have faced in the past with miscreants, self-imposed tax collection agents, and touts. 

“I want to assure you that as part of this initiative, we will be collaborating with the relevant security agencies particularly the Nigeria Police Force to tackle all forms of touting and illegal tax collection by miscreants and keep them away from your markets.” Mr. Nami further noted that the success of this collaboration would lead to increased revenue for the country, and in turn provide government the needed resources to fund infrastructure and other social amenities. 

 “The successful outcome of this collaboration and additional revenue accruable will have multiplier effects on all sectors of the economy as the government will have more revenue to provide the needed social amenities and infrastructure in critical sectors.

 “An improved VAT collection will improve the revenue base of the States and Local Governments at the sub-national level and the citizens will be the ultimate beneficiaries.

“This initiative is very important to the government, particularly at this moment of dwindling revenues from the petroleum sector and therefore, requires that we put all hands on deck and optimally explore all available opportunities.

 “The administration of VAT in the informal sector is characterized mainly by a low level of compliance and a lack of awareness in terms of obligation and liability. It, therefore, becomes necessary to leverage the MATAN platform to positively change the status quo,” Mr. Nami stated. 

He also noted that to ensure transparency and accountability of the project operations, a combined monitoring and evaluation team comprising both organisations would be formed. During the Stakeholder Engagement, the Executive Chairman, FIRS also unveiled an Identity Card that is to be given to each trader upon enumeration; the card contains their tax identification number and other personal details.

 The VAT Direct Initiative Stakeholder Engagement was attended by the Secretary of the Joint Tax Board, representatives from Deposit Money Banks, Iyalojas of Markets across the country, members of various trade clusters, representatives from all major markets across the country, as well as officers of the Federal Inland Revenue Service.  

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Hon. Minister of State for Industry Flags Off Ikom-Etomi-Agbokim Waterfalls Road Project

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Ikom, Cross River State – In a landmark event held on January 8, 2025, the Honourable Minister of State for Industry, Senator John Owan Enoh, officially flagged off the construction of the much-anticipated Ikom-Etomi-Agbokim Waterfalls road. The project, initiated under the leadership of President Bola Ahmed Tinubu, is set to address decades of challenges faced by the region, enhancing connectivity, tourism, and economic growth.

During his speech at the flag-off ceremony, Senator Enoh highlighted the historical and economic importance of the route, which links the four government-owned cocoa estates established during the late Michael Okpara administration. He emphasized that this project is not just about building a road but about addressing longstanding issues and fostering development for the people of Cross River State.

“The importance of this route cannot be overstated,” the Minister remarked. “From boosting tourism at Agbokim Waterfalls to improving the livelihoods of cocoa farmers and local traders, this project will transform the region.”

The Minister expressed profound gratitude to President Tinubu for his unwavering support and transformational leadership. He lauded the President’s initiative in naming the Lagos-Calabar Coastal Highway, which includes this road, as a critical federal project, thereby cementing Cross River State’s inclusion in national infrastructure plans.

Senator Enoh also thanked the Niger Delta Development Commission (NDDC), led by its Managing Director, Dr. Samuel Ogbuku, for taking decisive steps to redeem the region’s infrastructure legacy. He acknowledged the initial setbacks faced by the project, including poor contractor selection in 2012, and praised

the current leadership of the NDDC for ensuring a fresh start with competent contractors and a renewed commitment to quality and timely delivery.

Reflecting on the personal significance of the project, Senator Enoh shared his emotional connection to the road, which has been a subject of controversy and delays for years. “For me, public service is about delivering happiness and excitement to the people,” he stated, adding that the successful commencement of this project marks the end of a longstanding jinx.

The road is expected to significantly boost tourism in the region by improving access to the renowned Agbokim Waterfalls, one of Nigeria’s most famous natural attractions. Additionally, the project is poised to enhance economic activities, particularly in agriculture and trade, benefiting local communities along the route.

The ceremony witnessed a large turnout of community members, stakeholders, and government officials, all united in their excitement and optimism for the positive impact the road will bring.

As the construction begins, the people of Cross River State look forward to the fulfillment of this transformative vision, one that promises to strengthen infrastructure, foster economic development, and create a lasting legacy for the region.

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