Federal Government Establishes Committee to Address N1.3 Trillion Loss in Customs Revenue Due to Tax Waivers

In a significant development, the federal government, under the leadership of President Bola Tinubu, has unveiled plans to establish a dedicated committee tasked with the comprehensive review of existing tax waivers granted to individuals and organizations nationwide. The crucial announcement was made by the Minister of Information and National Orientation, Mohammed Idris, following a pivotal Federal Executive Council meeting.

The primary motivation behind this strategic move is the government’s urgent need for additional revenue to bolster development projects aimed at enhancing the quality of life for all Nigerians. Minister Idris underscored the importance of scrutinizing the current system of tax waivers, emphasizing that this initiative is deemed essential for the nation’s best interests.

During the announcement, Minister Idris highlighted a concerning report from the Nigeria Customs Service, revealing a staggering loss of over N1.3 trillion to waivers in 2023 alone. He asserted that the Federal Executive Council has taken the decision to delve into the details of these waivers, ensuring a meticulous review to prevent further financial hemorrhaging when resources are critical for the country’s development.

“The government will review that and see which ones are in the best interest of Nigeria and how to continue to allow them to function. The most important thing to note is that the government is losing a lot of money in that direction, and that is why this very critical decision has to be taken. Only those waivers that are backed by law will be allowed to subsist,” Minister Idris explained.

A dedicated committee will be established to undertake the comprehensive scrutiny of the existing waivers. The goal is to identify and retain those legally supported, ensuring that the country’s financial resources are utilized judiciously. Minister Idris emphasized that some waivers are backed by law, requiring a thoughtful and legal approach to determine their continuation.

“What Council agreed today is that a committee is going to work on that because some of these waivers are backed by law, and therefore you can’t just wake up and say we are done with them. So, the government will review that and see which ones are in the best interest of Nigeria and how to continue to allow them to function. The most important thing to note is that the government is losing a lot of money in that direction, and that is why this very critical decision has to be taken. Only those waivers that are backed by law will be allowed to subsist,” said Minister Idris.

It is noteworthy that the Nigeria Customs Service had previously reported a significant loss of about N1.3 trillion due to waivers and concessions granted during the tenure of former President Buhari. Against this backdrop, the current administration has articulated plans to increase the country’s tax revenue to 18% of GDP within the next three years.

In a related development, President Tinubu had earlier appointed Taiwo Oyedele to chair the Presidential committee on fiscal policy and tax reforms. This committee’s mandate is to spearhead the amendment of the nation’s tax laws for greater efficiency, aligning with the government’s commitment to financial prudence and sustainable economic growth.

As Nigeria navigates these fiscal challenges, the establishment of this committee signals a proactive and strategic approach by the federal government to address revenue concerns and ensure a sound financial foundation for the nation’s development projects in the years ahead. Infostride News will continue to provide in-depth coverage of this critical initiative and its implications for the country’s economic landscape.