The House of Representatives has issued a crucial directive to the Federal Inland Revenue Service (FIRS) to reclaim a staggering sum of over N5.19 trillion in unpaid taxes owed to the Federal Government by various ministries, departments, and agencies. This significant move follows a motion put forth by Esosa Iyawe, the representative of Oredo Federal Constituency in Edo State.
According to Iyawe, audit reports spanning from 2015 to 2019 have unearthed a disturbing trend of government entities defaulting on their tax obligations to the tune of hundreds of billions of naira. In addition, it has been revealed that a staggering number of over 5,000 companies and MDAs are collectively indebted to the tune of N5.2 trillion in withholding taxes.
The failure to remit these taxes in full has had dire consequences on the country’s economy, depriving it of much-needed revenue. Iyawe emphasized that this situation could further exacerbate the already fragile state of Nigeria’s economy.
Iyawe also highlighted the disparity in the tax treatment between small-scale businesses and larger entities, pointing out that the former are burdened with excessive taxation by the FIRS, while the latter, including multinational corporations, receive preferential treatment.
To address this pressing issue, the House of Representatives has set a deadline of four weeks for the recovery and reporting of all outstanding tax debts to the federal government. This data will then be subject to further legislative scrutiny and action.
It is worth noting that the recently signed N28.7 trillion 2024 Budget, endorsed by President Bola Ahmed Tinubu, carries a substantial deficit of N9.18 trillion. Despite this shortfall, the FIRS managed to generate an impressive N12.37 trillion in tax revenue in 2023, underscoring the agency’s pivotal role in sustaining the country’s fiscal health.
As Nigeria grapples with economic challenges, the imperative to enforce tax compliance and accountability among government entities and businesses has never been more urgent. The House of Representatives’ directive to the FIRS signals a crucial step towards ensuring financial transparency and stability in the nation’s fiscal landscape.
