Agency at the frontline of service delivery in Lagos

Updated: 2011-03-22 07:53

(China Daily)

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Internal Revenue Service makes excellent progress administering tax contributions

There are not many organizations that would relish the challenge of collecting taxes in Africa's largest city, but this vital task is all in a day's work for Lagos State Internal Revenue Service (LIRS).

The hard-working and committed agency is on the frontline of service delivery as its teams of highly-trained collectors ensures the provision of free public services such as health, education, roads, sanitation and water supply.

By raising awareness among businesses and individuals of how their taxes benefit citizens, communities, and commerce across Lagos State, LIRS is spearheading the fight against tax evasion and playing a leading role in ensuring a successful future for Lagos.

Encouraging tax payments

Agency at the frontline of service delivery in Lagos

As part of its crackdown on tax avoidance, the forward-thinking organization used an innovative publicity campaign; prominent citizens resident in Lagos, cutting across tribes, religion, professions and creed were enlisted for testimonial adverts on the need to pay tax and highlight the importance of tax obligations.

Boasting an effective, efficient and transparent revenue collection system that has won it the respect of clients in the corporate and household sectors, LIRS is charged with gathering a multitude of taxes through a network of 36 tax stations and 40 mini tax stations across the State.

Furthermore, LIRS has in operation a Self Assessment Filing System for individuals, the first of its kind in Africa which promotes transparency of assessment.

Among the taxes it collects are: personal income tax; capital gains tax; stamp duty; and business registration fees. LIRS generates 80 percent of the State's Internally Generated Revenue and is having a direct effect on improving people's quality of life as the city and state develop and improve at a rapid rate.

Under the careful guidance of Executive Chairman, Tunde Fowler, LIRS has made Lagos State financially stronger, more independent, and less reliant on federal government funds and oil export-oriented revenue.

"A decade ago, Lagos State generated an average of 600 million Naira ($4 million) per month, while in 2009 it was 14 billion Naira per month," says Fowler. "That growth is both rapid and very impressive."

Economic powerhouse

Fowler says the success of LIRS has enabled the State to flourish and grow into an economic powerhouse that offers international investors a wide range of benefits and a safe and secure investment environment in the heart of West Africa.

"Any foreign business that sets up operations in Lagos will find the state has a massive market of potential customers, and good security and infrastructure that promotes business at all levels, both at wholesale and retail level," Fowler states.

"Lagos State is very conducive for business and the State government has the financial ability to repay business loans from our excellent revenue collection system."

As the top official of such an important and successful organization, Fowler takes great satisfaction from helping build a brighter future for people living in the most populous city on the continent.

"I feel privileged to be part of the team that is transforming Lagos State and helping people see Nigeria differently," he said.

"We now host a lot of business events and corporate conferences in Lagos and through this work, we are opening up Nigeria to Africa and the international community."

The organization also strives to serve the public with quality services and products, and attain the highest degree of public confidence in its expertise, efficiency and integrity.

China Daily

(China Daily 03/22/2011 page18)