At inception in November 2008, the Governor Adams Oshiomhole led administration, recognized the need to reform and re-position the Board of Internal Revenue to enable Government optimize its Internally Generated Revenue (IGR) for the provision of basic amenities and infrastructure. This decision was a most courageous and purposeful move, as it seeks to institutionalize and make tax/revenue administration more efficient, equitable and transparent, while also incorporating the Comrade Governor’s philosophy of a people- and result-oriented government.
Establishment of a New Internal Revenue Service
In line with the new orientation, a new Internal Revenue Service was established, with the enactment of the Edo state Revenue Administration Law in December 2012. Part of the innovation was to build an autonomous Revenue Service that will be anchored on strict professionalism, transparency, integrity, and results.
Tax Assessment Review Committee (TARC)
A key element of reform policy was the setting up of a Tax Assessment Review Committee (TARC) to support the operations of the Edo State Internal Revenue Service (EIRS). The purpose for setting up this Committee is to ensure a transparent, fair and equitable treatment to all the parties involved in tax matters, notably, the taxpayers, the tax administrators and the State Government.
To ensure the independence and impartiality of the Committee, its membership was constituted to include not only the management of the EIRS, but also other government officials (Commissioners of Finance and Budget and Economic Planning) who are mainly technocrats. The Executive Chairman of the State Economic Team who is an experienced professional with a private sector background chairs the Committee.
The setting up of this Committee has provided an avenue for tax payers (individuals and corporate organizations) who have been assessed and are not satisfied, to come forward with their objections. These are, in turn treated fairly and dispassionately thereby minimising incidences of tax default and litigation.
Tax Education, Enlightenment and Sensitization Campaign
Since the inception of Governor Oshiomhole’s administration, the Internal Revenue Service has periodically interfaced with critical stakeholders and the general public (captains of industry, entrepreneurs, professionals, as well as artisans, market women, operators of commercial vehicles, civil society groups, among others) with the Comrade Governor in attendance most of the time.
The purpose of the stakeholder education and sensitization is to:
a. To sensitize members of the public on tax and tax-related matters;
b. To give account of how taxes paid by the citizens of Edo State have been put to judicious use, thereby entrenching transparency and accountability, and a culture of quality service delivery.
In February 2013, the State Government organized a Stakeholder Seminar on Tax Laws in collaboration with the State Judiciary with a view to enlightening and sensitizing the public on their rights and obligations.
Participants at the Seminar were drawn from the Judiciary, the Nigerian Bar Association (NBA), representatives of professional bodies, Heads of Tertiary Institutions, Trade Union leaders, Civil Society Organizations, Captains of Industries, leaders of Market Associations, Religious bodies, the media, and top Government functionaries.
Issues discussed during the Seminar included: Tax Assessment and Compliance in Nigeria; Tax Enforcement Procedures; Tax Laws and Tax Administration Reforms; as well as Tax Audit and Investigation Procedure, among others.
The Internal Revenue Service has also collaborated with the media, on a weekly basis, as part of its Tax education and enlightenment campaigns. Through this the EIRS engages the public through phone-in and interactive programmes whereby issues on tax matters are extensively discussed and Tax Laws are simplified and made clear to members of the public. Opportunities are also given to members of the public to air their views, ask questions, and seek clarifications on areas that are not clear to them.
The EIRS has also put up enlightenment campaigns in the print and electronic media by way of adverts and jingles in English and Pidgin languages, to enlighten, educate and sensitize members of the public, particularly people at the grassroots, on the need for them to pay their taxes towards the economic development of the State.
In addition, pamphlets on Frequently Asked Questions (FAQ) have also been produced and distributed to the general public, as a means of further educating them on their rights and obligations, as it concerns taxation in Edo State.
As part of activities to mark the official commissioning of the Edo State Internal Revenue Service Corporate Headquarters (Revenue House) on March 24th, 2014, the Executive Management and entire staff of the EIRS embarked on a Tax Sensitization, Education and Enlightenment Road Walk exercise tagged “Walk for Revenue Generation”. The public awareness walk which took the participants through some of the major Streets in Benin Metropolis, witnessed the distribution of leaflets and handbills to members of the public; members of staff also carried out a number of person to person engagement on tax sensitization and education with individuals and groups while the activity lasted.
Social Corporate Responsibility
As part of efforts to promote Social Corporate Responsibility, the EIRS has engaged the youths in some of its activities and operations, which has helped empowered them economically and socially.
Institutional Capacity Building of the Revenue Service
In order to carry out its operations professionally and in a transparent and accountable manner, the State Government has engaged the services of a reputable Consultancy Firm, Compliance Professionals, to assist the EIRS towards the full implementation of the new Revenue Administration Law and Reform Programme of Edo State Government. The Consultancy assignment, which has since commenced, covers the following areas:
a. Designing a proper governance structure aimed at re-engineering the processes and procedures of the EIRS, for improved service delivery and eventual automation;
b. Selection of key personnel, to fit into the roles and responsibilities, as obtainable in the Revenue Service to enhance optimal performance;
c. Training and manpower development to build internal capacity in the EIRS in order to be fully in charge of its operations hitherto rendered by external tax professionals/consultants.
Sector Strategic Plan 2010-2020
As part of measures to improve revenue generation in the State by the present administration, a ten year Strategic Plan (2010-2020) was developed to focus on four key areas namely:
a. Human Capital
b. Infrastructure and operational logistics
c. Automation of the revenue collection and accounting processes
d. Corporate Governance Reforms
The Strategic Plan was developed through a SWOT (Strength, Weakness, Opportunities and Threat) analysis which highlighted the weaknesses and the threats which challenged the collection of revenue at the inception of this administration. Some of these challenges include:
Poor work environment
Dilapidated physical infrastructure
Offices not purpose built to house revenue generation operations
Inadequate vehicles for revenue assessment/ enforcement
Poor power supply
No reliable Database
Inadequate ICT facilities
Poor communication network (internet/intranet)
Governed by Civil Service Rules
Authority limitation
Low level inter-Departmental linkages
Poor remuneration package
Human Capital and Human Resource Management
As part of the strategy to have in place the requisite manpower and expertise, the EIRS set up a Tax Training Institute where members of staff undergo various forms of professional training internally with resource persons drawn from within and outside the Service. The existence of this Institute is also geared towards professionalizing the Service.
The manpower development and training programme have opened the door of opportunities to young people to acquire professional knowledge on tax and revenue administration matters, thereby helping to guarantee a pool of dedicated and committed staff population that the EIRS can always draw from. The EIRS can also boast of having well over 16 members of staff at Management level who are Members/Fellows of different professional bodies such as: the Chartered Institute of Taxation of Nigeria (CITN), Institute of Chartered Accountants of Nigeria (ICAN), Nigerian Bar Association (NBA), and Nigerian Institute of Management (NIM) etc.
The EIRS, on an annual basis sponsor Middle and Senior Management Staff to attend Seminars, Conferences and Mandatory Training programmes to update their knowledge and skills, in line with international best practices and innovation in tax and revenue administration. Not less than 50 (fifty) members of staff of EIRS have so far benefitted from these training programmes.
Infrastructure/Operational Logistics
In the area of infrastructure and operational logistics, the EIRS has been able to provide a conducive working atmosphere in terms of office accommodation and equipping the Corporate headquarters to a standard modem office, with state of the art office equipment and ICT facilities, with an ambience that encourages creativity, productivity and professionalism in the work place.
The culmination of the infrastructural transformation of the EIRS Headquarters, also known as the ‘Revenue House’ was the official commissioning by the Comrade Governor of Edo State, Adams Aliyu Oshiomhole on the 24th March, 2014. Also commissioned on the day was the ultra modern Sunny Okundia Training School as well as the unveiling of the official brand logo of the EIRS.
The EIRS Tax and Motor Licensing Offices are also currently undergoing renovation and improved corporate governance outlook across the State. The EIRS is also in the process of providing new operational vehicles for an effective and efficient tax administration and aggressive revenue drive. In order to encourage high productivity, the EIRS has put in place an improved welfare package for its staff as incentives and a monthly performance bonus for field officers who meet and exceed 80% of their set targets.
Automation of the Revenue Collection and Accounting Processes
EIRS/JTB Tax Identification Number (TIN) Registration The EIRS in conjunction with the Joint Tax Board (JTB) has commenced the full implementation of the Tax Identification Number (TIN) Project which is an electronic system of tax registration with embedded biometric features that allocates a unique tax identification number to all taxpayers aimed at identifying and registering all taxable adults, thereby providing a reliable, comprehensive electronic database management system for effective tax administration. The main objective of the TIN Projects is: to have reliable and centralized information of all taxpayers in the country, which will lead to the sharing of information by all tax authorities in Nigeria.
The Major Goals of the TIN Program are:
a. To ensure centralized and reliable taxpayer information.
b. To provide a national platform to uniquely identify taxpayers across Nigeria.
c. To create a platform for the automation of Tax Administration in the country.
d. To automate tax registration activities to facilitate revenue generation and collection.
Benefits of the TIN Program Include:
a. Increase in Internally Generated Revenue (IGR)
b. Reduction in cost of Tax Administration
c. Reduction of tax errors such as double counting and evasion
d. Plugging of existing loopholes in the tax system
e. Create a foundation for a more effective Tax Administration
f. Widening of taxpayer database
g. Improved compliance by taxpayers and tax authorities
h. Centralized taxpayer unique identification system in Nigeria
i. Easy access to information by relevant and authorized tax authorities
j. Providing a basis for State planning, budgeting and resource allocation
k. Providing accurate data for relevant government agencies
Within a few months of commencement, the TIN Project in Edo State has been able to register 10,240 (ten thousand, two hundred and forty persons of the existing taxpayers that are already in the tax net both the formal and informal sector.
EIRS/World Bank SEEFOR Project
The Edo State Employment and Expenditure for Results (SEEFOR) Project is a joint collaboration between the Edo State Government and the World Bank which is aimed at ensuring youth employment, access to socio-economic services, public financial management reforms and project co-ordination and implementation support.
The World Bank selected Edo State for this support as a result of its proven record of good corporate governance, as well as sound accountability and transparency credentials of the Governor Oshiomhole’s led administration. The Project stands to help the State increase its Internally Generated Revenue (IGR) in a sustainable manner by broadening the tax revenue base, verifying the existing database of the State, strengthening tax administration to improve collection, facilitating the shift in tax structure from a reliance on higher tax rate to broader tax bases and improving efficiency and transparency in tax/ revenue collection and data management process.
The World Bank evaluation experts have approved a renowned Nigerian Company, Pricewater House Coopers to partner with the Edo State Internal Revenue Service in carrying out a State-wide Tax Enumeration Survey which will ultimately entail the design, development and installation of an electronic database management system (EDBMS).
Integrated Tax Administration System (ITAS)
The EIRS is currently working on the design and deployment of the Integrated Tax Administration System (ITAS) which seeks to administer tax policies and laws in an efficient, fair and transparent manner.
The benefits derivable from this system are:
a. To provide a platform for uniquely identifying all taxpayers, tax officers, tax agents and organizations with taxpaying employees;
b. Accounting for tax revenue with detailed records from assessment to payment into Government’s IGR accounts;
c. To provide assessment tax engines and programmes for existing taxes and future ones that may become assessable;
d. To provide a seamless infrastructure that enables taxpayers to process their tax from any of the tax offices in Edo State; or via a dedicated web portal while a single version of tax history is maintained;
e. To automate the process of tax revenue generation, tracking and reporting for Government administrative purposes;
f. To provide a databank of identifiable individuals that can be used for Management control and decision making;
g. To reduce error and increase efficiency in data storage and retrieval.
EIRS/Federal Road Safety Commission (FRSC) Motor Driver Licensing
In collaboration with Federal Road Safety Commission, some basic ICT infrastructure have been provided in the Motor Licensing Offices across the State to process the new electronic motor vehicle registration and drivers licence registration (e-vehicle registration/ e-licensing). As at date, a total of 35,721 (thirty five thousand and seven hundred and twenty-one) number plates have been successfully registered while 14,155
fourteen thousand, one hundred and fifty-five) drivers licences have been issued as at October 31st, 2013.
Point of Sale Terminals (POS)
In order to minimise, if not completely eliminate areas of revenue leakages, a cashless tax system has been put in place where all taxpayers now go directly to the Banks to pay their taxes or revenue due the State Government. To this end, members of staff are being trained to use Point of Sales (POS) Machines to give full realization to this policy, and these POS would be deployed effective January, 2014.
Internally Generated Revenue (IGR) Performance During the Period November, 2008 to October, 2013
Before the inception of this administration, the Internally Generated Revenue averaged N280 million per month. With the various reform programmes of the Comrade Oshiomhole’s administration, aimed at eliminating inefficiency in the revenue collection process and plugging all avenues of leakages, the monthly IGR performance witnessed a steady rise that climaxed in the generation of over N2 billion per month, as at December, 2011.
The implementation of the amendment to the Personal Income Tax Act, 2011 which granted huge tax reliefs to majority of taxpayers resulted in a drop of revenue by about 48% under the PAYE scheme that accounts for about 60% of revenue accruable to the State Government, thereby leading to a significant drop in monthly IGR to about N1.5 billion on the average. The primary objective of the 2011 PITA Amendment was to grant additional tax reliefs to low- and medium- income earners and to shift focus from direct tax to indirect taxes to enable taxpayers have more disposable income to enhance their purchasing power.
In order for the State to be able to optimise the various sources of Internally Generated Revenue, there was a shift of focus from direct to indirect tax sources of revenue generation such as:
a. The Consumption Tax
This Tax was introduced via the enactment of the Hotels and Event Centres Occupancy and Restaurant Consumption Law (2011), which is targeted at the hospitality industry to ensure that those who patronize them pay a minimum tax of 5% of the total bill of the item or service consumed at these facilities to Government.
There were initial challenges in the implementation of this Law mainly due to the non co-operative stance of hotel owners who by virtue of the provisions of the Law were to serve as collecting agents. Some of the hotel owners challenged the implementation of the Law and got an interim restraining order which has impeded the full realization of the anticipated revenue from this source. However, in the light of the recent Supreme Court Judgement in favour of Lagos State Government on the enactment and implementation of a similar Law, we are hopeful that this order will be vacated soon.
b. The Land Use Tax
The Land Use Charge Law (2012) was introduced to consolidate all land related charges under one single charge for ease of administration and collection. The Land Use Charge incorporates the Ground Rent which is provided for under the Land Use Act; Tenement Rate which is provided for under the Local Government law and the Property Tax which is provided for under the Land Use Charge Law. The Land Use Charge Law provides for the setting up of a Land Use Charge office that originates the Land Use Charge Notices on behalf of both the State and Local Government in Edo State on properties that are chargeable under this Law. The Land Use Notices that are raised are sent to the EIRS for enforcement and collection into a dedicated escrow account, less cost of collection to be shared in accordance with the agreed formula by the Stat and Local Government
The Land Use office is being set up and the various processes and procedures for collection and enforcement are being put in place for immediate commencement. It is envisaged that the revenue from this source will significantly help to cushion the revenue shortfall resulting from the PITA Amendment that granted huge tax reliefs to workers.
c. E-Lottery, Pools Betting, Casino and Gaming
The EIRS is in the process of initiating a review of the Law regulating Lottery, Pools Betting, Casino and Gaming in the State, with a view to optimizing the revenue collection from these sources. The proposed amendment to the Law will provide for full automation of the operations of these various sources of revenue with the introduction of e-Lotteiy and e-Gaming. A significant chunk of revenue is expected to come from this source given the potential market that exists as a result of the huge young and vibrant population in Edo State. We are hopeful that by the commencement of the New Year, we will be able to tap into this source of revenue.
d. Entertainment Tax
There already exists an Entertainment Tax Law which has not been fully implemented. We also intend to propose a review and amendment of this Law for the purpose of optimising the revenue opportunities derivable from this source.
Corporate Governance Reforms
As a result of improved corporate governance reforms, the Board, Management and staff of the EIRS are now bound by a common sense of purpose to work inter-dependently with each other as a team thereby promoting respect and trust rather than fear and submission in order to improve efficiency and productivity.
Corporate governance reforms embarked upon by the EIRS include:
a. Promoting an Improved corporate governance environment;
b. The establishment of a Monitoring and Evaluation Department, charged with the mandate to design programmes and monitor the performance of all the operations of the Revenue Service in line with the Law establishing the Edo State Internal Revenue Service;
c. The establishment of a Tax Drive Department under a Director, to oversee the activities of all revenue collecting units of the Revenue Service and also the control and issuance of Treasury Receipts to MDAs for the purpose of improved revenue collection;
d. The establishment of a Consumption Tax Department to oversee the implementation of the Hotels and Event Centres Occupancy and Restaurant Consumption Law, 2011, under the Director, Consumption Tax;
e. The establishment of an Intelligence and Enforcement Department to enforce assessment and recovery of outstanding taxes;
f. The establishment of a Land Use Charge Collection Office to efficiently enforce and collect all Land Use charges contained in the Notices of Assessment forwarded to the EIRS by the Land Use Charge office and ensure that they are lodged into the dedicated account and the records properly kept and reconciled;
g. Streamlined functions within the EIRS to ensure clear separation of roles and responsibilities.
Reform of the Legal Department
One of the major reforms of the Personal Income Tax Amendment was a major policy shift in the enforcement process of the provisions of the Tax Law, which has necessitated major reforms to put in place a virile and efficient Legal Department. With the implementation of the PITA Amendment, no tax enforcement and collection of outstanding taxes due from defaulters can be effected without obtaining an order of Court. From experience, the willingness of taxpayers to voluntarily comply with the payment of taxes is quite low; therefore, it became imperative that a virile and efficient Legal Department is put in place.
Within the period, the Legal Department have handled numerous cases of carrying out enforcement. As required by Law, the Department has filed over 1,536 number of cases to obtain distrain orders with a view to recovering outstanding Taxes due from defaulters. To this effect, it has obtained over similar number of Court orders, some of which have led to the recovery in 2013 as listed below:
-SUIT NO. B/RC/47/20 13 — EDBIR V NNPC (MEDICAL)    25,994,360.00
NNPC Medical Zone, B/C                        37,008,618.45
EDBIR V Federal Airport Authority of Nigeria            14,979,333.98
EDB1R V First Spring Franchise Services Ltd            2,942,126.55
— EDBIR V Hartland Nigeria Limited                 18,667,977.90
— EDBIR V National Orientation Agency                6,244,210.49
— EDBIR V Federal Road Maintenance Agency (FERMA)    94,957,324,40
— EDBIR V Niger Insurance Plc                    2,657,411.89
— EDBIR V Linkage Assurance Plc                1,248,364.70
— EDBIR V Federal Character Commission            6,676,376.69
— EDBIR V Electromontoz Consortium/Valenz Ltd        2,491,310.49
— EDBIR V Petroline Global Solution Limited            110,981,373.01
—ESBIR V Aero Contractors Nigeria Limited            2,050,610.00
— Nigeria Airspace Mgt Agency                    24,691,236.03
— EIRS V NIGERIA SECURITY & CIVIL DEFENCE CORPS    215,809,216.53
—EIRS V CORPORATE AFFAIRS COMMISSION        4,387,682.15
—EIRS V NATIONAL OPEN UNIVERISTY OF NIGERIA    6,962,929.02
—ESIRS V  NTA                            6,126,234.15
— ESIRS V FAN MILK PLC                    2,233,980.59
— ESIRS V Nigeria Customs Service                53,336,684.29
ESIRS V Nigerian Postal Service                    4,651,992.20
ESIRS V College of Education, Igueben                9,328,690.20

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Conclusion
The enhanced revenue generation has been made possible by the political will of the State Government, under the able leadership of the Comrade Governor, Adams Aliyu Oshiomhole, which has been a morale booster for the EIRS in its determined effort to bring about significant improvement of the State’s Internally Generated Revenue (IGR).
The Comrade Adams Aliyu Oshiomhole administration has also earned the confidence and trust of the citizens of Edo State, who have enjoyed commensurate returns in form of the provision of social services and developmental projects, and ensuring value for taxpayer’s money.
This administration has proven that an effective and efficient tax system complements good governance. Taxation can, therefore, be said to be a tool for democratic sustainability and economic development.
What has been achieved so far is evidence of our commitment to realization of our vision of “becoming the most efficient  and transparent Revenue Service in Nigeria built on integrity, accountability and taxpayers confidence”; which is clearly in line with our mission statement: “to render value added services to taxpayers by entrenching a sustainable system of tax administration and optimized revenue generation.
Courtesy EIRS Info Manual