In its effort to towards improving the Internally Generated Revenue in Kaduna State, the Kaduna State Government delegation ably leaded by the State’s Honourable Commissioner of Finance, Honourable Shizzer Nasara Bada are in Lagos State for a study visit to gain insights into the Lagos State Commendable revenue collection process.
In her opening remarks, the Honourable Commissioner Kaduna State Ministry of Finance, Honourable Shizzer Nasara Bada, has extended the Kaduna State Government warmest regards to the good people of Lagos State on behalf of His Excellency the Executive Governor of Kaduna State, Senator Uba Sani.
The Honourable Commissioner reiterated that revenue collection is a vital aspect of government operations, and the efficiency and effectiveness of this process directly impact the development and welfare of our citizens, therefore the choice of Lagos State for this important study visit to learn from its experience, best practice, track record and remarkable achievements in revenue collection is Key.
Honourable Shizzer Nasara further said, the objective of the study visit was to gain a comprehensive understanding of the various revenue sources and collection mechanisms employed by Laos State, to access the technology and infrastructure used to enhance revenue collection and ensure transparency, to study the legal and regulatory framework governing revenue collection in Lagos State, to explore strategies for stakeholders engagement and public awareness campaigns aimed at fostering compliance and lastly to evaluate the training and capacity building programs for revenue collection personnel.
The Honourable Commissioner hoped that the deliberations will provide an insight which can be adapted and implemented by the Kaduna State Government towards enhancing the state’s own revenue collection to be able to sustain itself and implement people oriented projects across the entire state. Moreover, the visit presents an opportunity for exchange of ideas and strengthening of the interstate collaboration as Kaduna State is also leading as the first state in transparency and accountability.
In his response, the Accountant General/Permanent Secretary Lagos State Treasury Office Mr. Biodun Murtala has welcomed the Kaduna State Government entourage and stated that the Lagos State is a major economic centre in Nigeria and houses headquarters of most conglomerates and commercial banks in Nigeria. The State’s economy is diverse with agricultural and fishing output. Lagos has taken a lead in terms of internally revenue generation in Nigeria. Lagos State has grown her IGR generation by 10,000% from 600 million naira in 1999 to an average of 57.6 billion naira per month in the year 2022.
The Lagos State Accountant General Mr. Biodun further reiterated that Lagos Sate has able to achieved this feat over the years through her strategic thinking session like Ehingbeti Economic Submit, Lagos State Strategic Development Document (Project Wheel) Lagos State Development plan Documents 2012-2025, 2052 etc.
The Accounatant General of Lagos State Further highlighted the Lagos State Revenue Growth Strategies which includes: Expanding Tax Payer Base, Introducing new line of Revenue, Improving Collection Mechanism, Use of InfoTech (e.g. electronic Banking System), Aggressive infrastructure Development, Public –Private Partnerships, Economic Development strategies/programs.
Mr. Biodun said, Lagos has about 383 unique revenue lines, each contributing to the revenue pool of the State. The Revenue lines are summarised into 12 basic classifications (Taxes, Fines and Fees, Dedicated Revenue, Capital Receipts, Earnings and Sales, Interest Repayment & Dividends, Rent on Government Property, Licenses, Land Use Charges, Investment Income and lastly Miscellaneous). The revenue lines classified as Pay as you Earn, Withholding Tax on D, Stamp Duty, Hotel Activities, Tax on Rent, Development Levy, Business Premises, Entertainment Tax, Penalties and Inter penalties, Property Tax, Capital Transfer Tax, Tax on Miscellaneous, Sales Tax. All these collections are automated through the use of technology. The Lagos State Government has issued a circular that band any form of cash collection and defaulters are sanctioned in accordance with the civil service rules and regulations.
Whenever there is new idea on revenue generation, the office of the Accountant General will create a new code through the Financial Information System Directorate (FIS) and forward the code to the revenue consultant for mapping on the oracle application system. This can also be used to measure the performance of agencies on how well they are doing in terms revenue performance and also through revenue stakeholders meeting. The FIS are the system administrator he said.
The Director Revenue Monitoring and Investigation Department Mr. TA Mahmud has taken the entourage through Revenue collection process. The process starts from the Tax Payer then goes through some automated processes up to the payment information (i.e electronic receipt). The Department also conducts the annual budget survey, conduct annual financial statement, investigate cases of fraud and financial management. On the oracle application there are about eleven modules that effective works together for effectiveness and efficiency.
Mr. TA Mahmud went further and highlighted the Lagos State Government Electronic Banking System of Revenue Cycle Management (LASG EBS-RCM) adopts the Direct Bank Lodgement System (DBLS) through multi-Channel Payment system. Key features of the system include: Electronic Payment Solution, Online Tax Filling and Billing, Integration with Financial Institutions, Real Time Reporting and Analytics, Security Measures, Integration with Existing System, Automation of Process and Customer Support.
All other department have made a presentation on how they carry out its activities. Those departments include Treasury Operation. The Treasury operation has six directorates which includes Funds Management, Voucher Verification Unit, Payment of the Check Unit, Account Payable which linked to the Oracle System and FIS, Business and Banking Relationship and Refund Unit).
The entourage were further taken to the Lagos Internal Revenue Service (LIRS) where they were received by the Chairman Mr. Ayodele Subair who is ably represented by the Director Personal Income Tax Mr. Ayodele Adebayo. At the LIRS series of presentations were made by the Head of Departments (Tax Audit, Relationship Management Unit etc) on their departmental activities and the processes usually followed for revenue collection in Lagos State.
The Kaduna State Study Team were also taken to the Lagos State Public Procurement Agency where they an interactive session with the management of the agency who internally revenue generation to the Lagos State Government by the Agency.
The entourage also move to the Lagos State Land Bureau were it had a fruitful deliberation with the Executive Secretary Land Use and Administration Mrs Ololade Ajetunmobi on the major reforms in the Land Bureau such as Electronic Document Management System, Electronic Certificate of Occupancy, Integrated Land Administration Automation System, the Bureau Responsibilities, Fees/Rates/Charges, Deemed Grant Consent Processing and Scale of Charges of Land Regularization.
The Lagos State Consultant on revenue collection AlphaBeta LLC had also made a presentation to team Kaduna on the its success story toward achieving what Lagos State is proud of today in terms of State Internally Generated Revenue.
The Kaduna State Government entourage includes the Permanent Secretary Ministry of Finance Muhammad Mahmud Shu’aibu, Director Internal Audit Yahaya Ahmed Sa’idu, Public Relation Officer Abdulkareem Suleiman, Acting Executive Secretary Kaduna Internal Revenue Service (KADIRS) Jerry Adams, Executive Director Revenue Operations KADIRS Dr. Lawal Muhammed, Executive Director Standard and Compliance Ali Gora, Board Sec/Legal Adviser Barr. Aisha Ahmad Muhammad, Chief Executive Officer Sagamy Technology Mr. Don Okonny, Senior Consultant Sagamy IGR Services Awaje Danlami, Head of Technology Solutions Sagamy Ogaga Ogbeni and representatives from REMITA Consultants Services.
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