Stakeholders in the Nigerian maritime industry have expressed reservations about the recent proposal to appoint the Federal Inland Revenue Service (FIRS) as the sole revenue collector for the nation.
This proposal, if approved will affect key maritime agencies like the Nigerian Ports Authority, the Nigerian Maritime Administration and Safety Agency and the Nigeria Customs Service.
Industry experts have however expressed apprehensions over potential bureaucratic obstacles and operational hurdles that could arise, if the proposal is not carefully handled.
Speaking with our correspondent, the stakeholders collectively emphasized that, while the goal of streamlining revenue collection processes is well-intentioned, it must be approached with caution to avoid unintended complications for the diverse federal government agencies involved.
Dr. Muda Yusuf, CEO of the Center for Promotion of Private Enterprise (CPPE), acknowledged the potential benefits of centralizing revenue collection for transparency but called for meticulous planning.
He stressed the need to prevent disruption to crucial agencies such as the Nigeria Ports Authority (NPA), Nigeria Maritime Administration and Safety Agency (NIMASA), and Nigeria Customs Service (NCS), whose operations depend on remitting surpluses after accounting for operational costs.
Dr. Yusuf urged the government to establish a framework that ensures that these agencies’ budgeting and financial needs are met without causing operational setbacks.
According to him, “there are merits and there are possible demerits, the merits is that the more we unify revenue collection system particularly through technology, the more we are able to ensure that there are no leakages with respect to collection of revenue. You know, this was the spirit in connection to the Treasury Single Account (TSA); it is not too much different from the TSA because we’ve had situations where agencies of government had multiple accounts and since the constitution says that all revenue from all government agencies must come into the consolidated revenue purse. So in line with that, I think we should ensure that all revenue goes to a common purse”.
He explained further, saying: “I think what the government is doing is to create a frame work to allow for the seamless transfer of revenue from all these agencies directly to the purse of FIRS, however this should not be done in a way to disrupt the operations of this agencies; that is very important.
“You know the current arrangement is that some of these agencies like NPA, NIMASA Customs and the rest; what they remit is the surplus, that is net of their operating cost, so the modalities of sorting that out, I am not sure have been spelt out, because if they have to wait for the budgetary cycle and things like that before they now get funds to do their operations, that may cripple some of their operations.
“So, there has to be a way to get them prepare a budget and the budget approved and whatever is being remitted will be the net of whatever the cost of their operations is, otherwise if you say that all the revenues must go in, then it means those agencies must go through the route of appropriation, Minister of Finance approval before they can get money to operate, that may be extremely difficult”.
He argued that, “that aspect has to be carefully looked at. We need a framework that will not subject them to undue bureaucracy to be able to access money for their operations; that is very critical. Otherwise, the whole thing may disrupt the operations of these agencies which will not be in the interest of the country”.
Shedding light into what he expects the FIRS to do, Dr Yusuf said, “I think what they are doing is just collection, they cannot issue invoice, they cannot evaluate projects, because they don’t have competencies in those areas, so if it’s just collection, it can be made simplest electronically by giving people the government account to pay into”.
Speaking also Engr. Monsour Ahmed; the immediate past President of the Manufacturers Association of Nigeria (MAN), underscored the significance of a holistic approach to fiscal reforms.
While supporting the centralization initiative, Ahmed cautioned that it must be complemented by effective financial management practices and timely budget execution to prevent delays in vital projects. He commended the government for the initiative, but highlighted the importance of meticulously implementing the transition to avoid inefficiencies.
On his part, the President of Association of Professional Freight Forwarders and Logistics of Nigeria (APPFLON), Frank Ogunojemite, sounded a note of caution. He expressed concerns over potential bureaucratic complexities and the risk of increased corruption.
Ogunojemite stressed that maintaining agencies’ independence is crucial for curbing financial irregularities, even as he urged the government to prioritize strategies to boost exports and generate foreign exchange, suggesting that this would have a more positive impact on the nation’s economic prospects.
