Efficient Tax System Crucial to Fair Share of Tax Burden in Nigeria
Nigeria’s financial intelligence agency, the Nigerian Financial Intelligence Unit (NFIU), has emphasized the need for an efficient tax system to guarantee that everyone pays their fair share of the tax burden. The agency’s Chief Executive Officer, Hafsa Bakari, made this call during a speech at the Revenue Assurance Summit in Abuja on Tuesday.
According to Bakari, the NFIU’s focus has shifted towards increasing internally generated revenue, as this would enable the government to provide essential amenities for citizens. She noted that efficient systems must be in place to ensure everyone contributes to the tax burden, with no room for tax avoidance or evasion.
Historically, FIUs like the NFIU have focused on money laundering and terrorist financing. However, Bakari explained that the NFIU has identified tax crimes and revenue assurance as a critical strategic priority, leading to the establishment of a dedicated Tax Crimes and Revenue Assurance Department, one of the first of its kind globally.
The NFIU has also partnered with sub-national counterparts to ensure that data on financial transactions is shared, recognizing that most tax evasion occurs at the state level. However, Bakari emphasized the need to protect the integrity of this information, citing international conventions and standards.
In her words, "To build the schools we need, to educate our children, to provide effective healthcare, to build roads and bridges, to secure our communities, we recognize that our focus should shift towards internally generated revenue. There can be no room for tax avoidance and tax evasion."
By promoting a more efficient tax system, the NFIU aims to ensure that everyone contributes their fair share, ultimately benefitting the country and its citizens.
