The Presidential Committee on Tax Reforms and Fiscal Policy wants the Federal Inland Revenue Service (FIRS) to be the only agency with the power to collect government revenues.

At the moment, Nigeria Customs Service (NCS), Nigeria Ports Authority (NPA), Nigerian Postal Service (NIPOST) and several other Ministries, Department and Agencies collect trillions from Nigerians, companies and remit to the federal government.

However, the Chairman of the tax committee, Taiwo Oyedele, does not believe that the agencies should be allowed to collect revenue directly.

Speaking on Channels Television, he argued that the FIRS was best suited to collect revenue for the MDAs.

His words: "Ironically, our cost of collection is one of the highest. And the reason is that we have got all manners of agencies.

"The Federal Government alone, we have 63 MDAs that were given revenue targets last year, no; actually in the 2023 budget."

Oyedele, who recently resigned from his position as Fiscal Policy Partner and Africa Tax Leader at PriceWaterhouseCoopers and build a strong reputation as a tax man, added that the lack of coordination is the reason Nigeria’s revenue collection from taxes is one of the lowest in the world but the cost of collection is high.

He said: “Two consequences arising from this are: firstly, these agencies are being diverted from their core role of promoting the economy. Secondly, since their original purpose did not involve revenue collection, they will struggle to gather funds efficiently.

“So, move those revenue-collection functions to the FIRS. It has two advantages: the cost of collection and efficiency will improve, these guys will focus on their work, and the economy will benefit as a result.

“If you are Customs, focus on trade facilitation, border protection and if you are NCC (Nigerian Communications Commission), just regulate telecommunications. You are not set up to collect revenue."

“It can be your revenue and someone else can collect it for you. There will be more transparency because you can see what is being collected and is accounted for properly. It is also a way of holding ourselves to account as to how we spend the money we collect from the people.”

Some of the MDAs set to be affected if the revenue proposal is accepted

Federal Airports Authority of Nigeria

Nigerian Ports Authority

Nigeria Deposit Insurance Corporation

Nigerian Meteorological Agency

National Agency for Food and Drug Administration and Control

Federal Road Safety Corps

Nigeria Customs Service

Standards Organisation of Nigeria

Nigerian Airspace Management Agency

Bank of Agriculture

Nigerian Bulk Electricity Trading

Tertiary Education Trust Fund

Federal Radio Corporation of Nigeria

Nigerian Railway Corporation

Federal Reporting Council of Nigeria

Nigerian Maritime Administration and Safety Agency

Corporate Affairs Commission

Nigeria Civil Aviation Authority

National Broadcasting Commission

Joint Admission Matriculation Board

Nigerian Port Authority

National Automotive Design and Development Council

Federal Mortgage Bank of Nigeria

Nigerian Upstream Petroleum Regulatory Commission

Nigerian Communications Commission