The permanent secretary of the Federal Capital Territory Administration, Adesola Olusade, is optimistic that the decision to centralise revenue collection under a single entity will help ensure transparency and effectiveness in the FCT’s revenue collection system.
Olusade, who stated this while unveiling the strategic plan for delegation of duties and responsibilities of revenue collection to the FCT-Internal Revenue Service, FCT-IRS, said the revenue harmonisation was done in the interest of the territory and its people.
He explained that this decision was the result of extensive deliberation, meticulous analysis and commitment to enhancing the efficiency in the tax system.
He recalled that the administration recently led other stakeholders in a public presentation of the Communique of the Resolution Retreat on the Harmonization of Revenue Collection in the FCTA.
According to him, the reactions of the citizens to the presentation were salutary and revealed their great expectations adding that, “Indeed, we have attained a “point of no return” in this shared journey to promote sanity in the Territory.”
The permanent secretary noted that to ensure the successful execution of this delegation, they decided to adopt a project management approach saying this approach, renowned for its structured, organized, and systematic process, would guide them through this transition, providing a clear roadmap for their journey.
Olusade disclosed that at the helm of this project, there would be the project steering committee, PSC, previously known as the Implementation Committee to be chaired by him.
He added that the policy decisions of the PSC would be implemented by the project implementation committee to be chaired by the chairman, FCT-IRS while details of membership of the committee would be constituted and conveyed by the chairman.
In his remarks, the FCT-IRS Acting Executive Chairman, Mr. Haruna Abdullahi, said centralizing revenue collection under the FCT-IRS would eliminate the need for multiple entities to perform similar tasks and would reduce administrative overhead and allow for a more streamlined process.
He stressed that the move will also ensures that all revenue collection activities are coordinated and aligned, reducing the potential for errors or oversights that could lead to lost revenue and this efficiency can also result in cost savings, as resources can be more effectively allocated and used.
“Inefficient or fragmented revenue collection systems can lead to lost revenue, whether through errors, fraud, or non-compliance. By centralizing revenue collection with the FCT-IRS, we can address these issues more effectively, ensuring that all due revenue is collected. This can provide the FCT with more funds to invest in essential services and infrastructure, benefiting all residents.
“Having a single entity collect all revenues allows for better data collection and analysis. This can provide valuable insights into revenue trends, taxpayer behaviour, and potential areas of improvement in the tax system. It can also support more accurate revenue forecasting, helping the FCT to plan and budget more effectively,” he said.
