FCT Set to Lead Nigeria’s Tax Harmonization Under New Reform Plan

The Presidential Fiscal Policy and Tax Reform Committee has revealed its plan to use the Federal Capital Territory (FCT) as a model for implementing the harmonization of taxes across the country.

This was disclosed by the committee’s chairman, Taiwo Oyedele, during a key meeting held in Abuja on Friday, which focused on harmonizing revenue administration.

The meeting was organized by the FCT Internal Revenue Service (FCT-IRS) and brought together the area council chairs of the FCT, who play a critical role in local governance and revenue collection.
Mr. Oyedele explained that the harmonization and simplification of taxes, contrary to some misconceptions, would not lead to a reduction in revenue. Instead, he assured that these reforms would enhance revenue generation for both the federal and state governments.

“Harmonisation and simplification of taxes, as well as achieving equity and fairness in revenue administration, are critical areas of reform for our committee,” Mr. Oyedele stated. He emphasized the importance of the reforms in fostering a more transparent and efficient tax system, which would benefit the country’s overall financial health.
The committee chairman also expressed support for the actions already taken by the FCT-IRS towards the harmonization of taxes within the territory.

He encouraged the FCT and other states across the country to discourage unorthodox and informal methods of tax collection, particularly those seen on highways, roads, and streets, which he referred to as “embarrassing and unacceptable.”

These practices, according to Oyedele, create loopholes that hinder the country’s ability to collect taxes effectively and transparently.
Mr. Oyedele strongly advocated for the increased use of technology in the tax collection process. He highlighted that the adoption of digital platforms would help eliminate tax evasion, close revenue leakages, and improve transparency in how taxes are collected and managed.

“Technology can eradicate tax evasion and leakages and improve transparency,” he said, urging all stakeholders to collaborate in ensuring the success of the tax harmonization efforts.
In his remarks, Michael Ango, the acting executive chairman of the FCT-IRS, commended the area council chairs for their commitment to the harmonization project.

Mr. Ango acknowledged that the willingness and support of the local leaders would be critical in achieving full tax harmonization in the FCT.

He praised the collective determination and effort of the council chairs, which he sees as vital in making the harmonization process a reality.
Mr. Ango also emphasized that the Minister of the FCT, Nyesom Wike, is fully committed to boosting the internally generated revenue (IGR) in the FCT. This increased revenue, he said, would help improve the provision of infrastructure and social services for residents.

The acting chairman reaffirmed the FCT-IRS’s commitment to implementing a robust technology platform, which will be crucial for ensuring both efficiency and transparency in the revenue collection and administration processes.
In addition, Ubokutom Nyah, the mandate secretary for Economic Planning, Revenue Generation, and Public-Private Partnership in the FCT Administration, lauded the efforts of the FCT-IRS chairman for revitalizing the tax harmonization initiative.

Nyah recognized that the revival of this project was a crucial step towards strengthening the financial base of the FCT and ensuring sustainable revenue generation for the territory’s development.
This meeting and the subsequent steps toward harmonization represent a significant move toward modernizing Nigeria’s tax system, with the FCT serving as a model that could eventually be rolled out across the rest of the country.

The reform aims to streamline tax administration, reduce corruption, and ensure that all citizens contribute fairly to the nation’s development. By using technology and improving transparency, Nigeria hopes to increase its revenue generation and provide better services to its citizens, thus strengthening the economy in the long term.