The collapse of the aviation and maritime sectors loom, as President Bola Tinubu planned to strip key regulatory agencies of their revenue collection functions, thereby, threatening their operations.
Although many have expressed reserve over the proposed renaming of the Federal Inland Revenue Service (FIRS) by President Bola Tinubu, on the excuse that they do not have enough facts to opinionated on the matter, a few others who spoke with newsmen on the development said the move could have several implications for fiscal matters in Nigeria, particularly concerning tax administration and the balance of power between federal and subnational governments.
Recall that President Tinubu has sent a ln Executive Bill to the National Assembly, titled: ‘The Nigeria Revenue Service (Establishment) Bill to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007, and establish the Nigeria Revenue Service’.
According to the President, the new agency will be responsible for assessing, collecting, and accounting for revenue accruing to the Government. This new law will expunge the revenue collection function from 62 revenue-generating agencies and transfer the responsibility of revenue collection to a single agency for what the government termed efficiency in revenue collection.
Some of the agencies aside NPA, NAMA, NIMASA and NCAA are, include Federal Airports Authority of Nigeria, (FAAN); Federal Inland Revenue Service(FIRS), are the Bank of Agriculture(NBN), Nigerian Bulk Electricity Trading (NBET), Tertiary Education Trust Fund (TETFUND), Federal Radio Corporation of Nigeria (FRCN), Nigerian Railway Corporation (NRC), Federal Reporting Council of Nigeria (FRCN),; Standards Organisation of Nigeria (SON).
Others are, Nigeria Deposit Insurance Corporation(NDIC), Nigerian Meteorological Agency (NIMET), National Agency for Food and Drug Administration and Control (NAFDAC); Federal Road Safety Corps, (FRSC); Nigeria Customs Service, (NCS); Corporate Affairs Commission, (CAC); Nigeria Civil Aviation Authority(NCAA); National Broadcasting Commission, (NBC) and Joint Admission Matriculation Board, (JAMB).
However, sources in some of the agencies have turned down the initiative, saying lots of revenue will be lost by the government instead of being maximised. Others also argued that operations of some of the affected agencies would be paralysed due to inability to make funds available for immediate remedial work.
According to sources who spoke to newdmen on condition of anonymity because of the sensitivity of the discourse, said technical agencies such as NIMASA, NPA, NCAA, NIMET, NAMA, among others, will have their operations affected by the pressure planned decision.
Speaking on the proposed law, the National President, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, said NPA, NIMASA and other regulatory agencies shouldnt be part of the proposal because they are not revenue generating agencies but regulatory agencies. According to him, these agencies have defined and specific roles according to the act that set them up.
Amiwero explained that while NPA was saddled with responsibility of maintaining channels and developing ports, NIMASA was created for development of indigenous shipping in Nigeria, hence, they are not revenue generating agencies. He, however, said that integrating the revenue functions isnt new but the Nigeria government should lump revenue generating agencies with regulatory agencies.
Also speaking, the former National President of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr Eugene Nweke, faulted the Bill. He added that Customs all over the world were known for revenue collection.
The experts believe that the move could pose challenges in coordinating tax policies and revenue collection between the federal and State governments, leading to confusion and inefficiencies, especially now that the government is trying to streamline tax collection.
Similarly, according to the Managing Director of Economic Associates, Dr. Ayo Teriba, the change of name does not have any real economic difference as long as the content of the new act does not differ from the FIRS Act.
