The Nigerian government, in an attempt to generate more non-oil revenue in 2010, plans to tighten the noose around tax evaders and withdraw some concessions, local newspaper Vanguard reported Tuesday.
Also, revenue from custom activities will be rejuvenated through a Customs admin istration reform, the paper quoted Minister of Finance, Dr. Mansur Murhtar, as saying Monday while giving the breakdown of the 2010 budget in Abuja, the Nigerian federal capital.
On the fresh revenue drive, the minister said; ‘On-going and envisaged interventions in this very important area include: deepening of tax-administration reform by the Federal Inland Revenue Service; the inauguration of the Presidential Task Force on Customs Reform; and rationalisation of tax waivers, exemptions and in centives.
‘I would also like to mention the inauguration and constitution of the Preside ntial Task Force on Customs Reform. The Task Force was granted an initial tenure of two years to carry out its assignment effectively and comprehensively and to enable the crystallization of major reorganization and transformation of the Nigeria Customs Service (NCS) into a modern institution capable of enhancing revenue generation, facilitating trade and curbing inefficiencies, all of which are critical to Nigeria’s Vision 20:2020 and the implementation of its Seven-Point Agenda.
‘The Presidential Task Force is required to oversee on behalf of the Nigeri a Customs Service Board (NCSB), the implementation of an Agreed Action Plan for the structural transformation of the NCS into an efficient, work-class organization, involving an overhaul of governance, organizational and leadership structures, systems, processes and procedures.”
According to the minister, ‘The Federal Government is currently undertaking far-reaching economic reforms that are anchored on Mr. President’s Seven-Point Agenda and the National Vision 20:2020 strategic development initiative.”
The Seven-Point Agenda encompasses the key issues of infrastructure development (power, energy and transport); land reform; human capital development; law, order and security; food security and agriculture; wealth creation and the Niger Delta.
‘The key element of the vision is to achieve a double-digit real GDP growth, with a view to placing Nigeria among the top 20 economies by 2020. Massive investments are currently being undertaken to revamp infrastructure, agriculture, roads and railways rehabilitation, as well as ensure peace and security of lives and properties in the country,’ he added.
Murhtar noted that the 2009 capital budget was only 44.55 per cent implemented in the first three quarters of the year, adding that between January and September, the revenue from oil and non-oil sources were below projections.
In this connection, the aggregate revenue available for distribution to the three tiers of government fell short of the projected estimate of N2.68755 trillion by N666.07 billion or 24.8 per cent (1 naira = US$ 150).
On deregulation of the oil sector, the minister said, ‘The government has also been working very hard in reforming the downstream petroleum sector with a view to removing the inefficiencies that have bedevilled the sector, enhancing competition as well as ensuring adequate supply of petroleum products.”
He said the dependence on imports, inadequate supply and distribution infrastructure and poor condition of the refineries underscored the necessity for a change in government policy in the downstream petroleum sector.
“As a nation, we have spent huge amounts of resources over the years, purportedly to subsidize domestic consumption of petroleum products, which has bred huge in efficiencies and rent-seeking activities in the downstream petroleum sector. In 2006, it was N255.7 billion, it rose to N290.4 billion in 2007, and nearly tripled to N654.7 billion in 2008,” he said.