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2007 Assessment

Nigeria: Integrity Indicators Scorecard

Nigeria: Integrity Scorecard Report > Sub-Category: Taxes and Customs
Indicators		Score
58	In law, is there a national tax collection agency?	100
59	Is the tax collection agency effective?	63
60	In practice, are tax laws enforced uniformly and without discrimination?	50
61	In law, is there a national customs and excise agency?	100
62	Is the customs and excise agency effective?	88
63	In practice, are customs and excise laws enforced uniformly and without discrimination?	75

Indicator and sub-Indicator Details

In law, is there a national tax collection agency?

58: In law, is there a national tax collection agency?

Score:

YES

Comments:

References: Federal Inland Revenue Service, Federal Inland Revenue Service Act, 2007

Is the tax collection agency effective?

59a: In practice, the tax collection agency has a professional, full-time staff.

Score:

100

Comments: The FIRS has staff, but these staff are insufficient to handle taxation issues for the whole country.

Peer Review Comments: Another issue of concern is consistent training standards for staff.

59b: In practice, the tax agency receives regular funding.

Score:

100

Comments: Government funding for this institution is not a problem. Their source of funding has been constant and predictable. They suffer the inadequate funding challenge that most government establishments complain of.

In practice, are tax laws enforced uniformly and without discrimination?

60: In practice, are tax laws enforced uniformly and without discrimination?

Score:

100

Comments: The tax laws as they stand place more burdens on certain people. For instance, tax reliefs are given to an individual only for four children and more. Tax laws are also unequally applied; poor people pay taxes more frequently than rich people. This is because tax collectors harass them on the roads to pay their taxes without adequate computation of income and taxable income. Nigerians also generally have a poor culture of paying taxes, and the FIRS do not have the capacity to enforce these laws across the board. Nigeria also generally has a culture of multiple taxation.

References: 1. Emeka Ononamadu, deputy executive director, Community Action for Popular Participation (CAPP), CAPP office, Aug. 29, 2007; 2. Lawrence Ogwuche, senior Finance and Administration officer, Pact Nigeria, Pact's Abuja Office, Sept. 6, 2007; 3. "Mutiple Taxation In Nigera" Ifueko Omoigui Bussiness Day, Monday, Sept. 4, 2007 4. Multiple Taxation: Threats to the Manufacturing Sector Paper Presented Mr. Foluso Fasoto Chartered Institutes of Taxation of Nigeria Web site [ LINK ]

Peer Review Comments: Privileged people and companies are prone to bribing the tax companies to reduce their tax burden.

In law, is there a national customs and excise agency?

61: In law, is there a national customs and excise agency?

Score:

YES

Comments:

References: Nigeria Customs Service, Customs & Excise Management Act (CEMA) 2004

Is the customs and excise agency effective?

62a: In practice, the customs and excise agency has a professional, full-time staff.

Score:

100

Comments: The agency has fair enough staff to carry out its mandate. It is an income generating organization, so training is also given to staff members.

62b: In practice, the customs and excise agency receives regular funding.

Score:

100

Comments: The organization has a regular source of funding from the government. This source is predictable and not hindered by the political environment. The organization generates a lot of money for Nigeria, so it is considered important.

In practice, are customs and excise laws enforced uniformly and without discrimination?

63: In practice, are customs and excise laws enforced uniformly and without discrimination?

Score:

100

Comments: Customs and excise duties are generally enforced uniformly, although there are certain stated exemptions in customs duties. Various persons through corrupt means try to evade customs duties, but this is not an organizational policy. Customs and excise duties are consistently applied, more than other forms of taxations in Nigeria.