SWOT Analysis: A Case of a Sub-National Tax Authority 23...SWOT Analysis Studying reports ... • Pools betting and lotteries, gaming and casino taxes • Business premises registration

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SWOT Analysis: A Case of a Sub-National Tax Authority

Presented byMustapha Ndajiwo

ATRN CONGRESS 2016, MAHE, SEYCHELLES

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INTRODUCTION

This research is a case study of a , a second tier sub-national tax authority; the Niger

State Internal Revenue Service of Nigeria

It is a diagnosis of the organisation vis-à-vis Internally Generated

Revenue (IGR).

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RESEARCH PROBLEM

The fall in the federal allocation to the states due to the fall

in oil revenue has exposed the inefficiency of the Niger

State Internal Revenue Service.

This development has forced the state to borrow funds to

pay the salaries of its civil servants and left budget

financing in limbo because the Internally Generated

Revenue is very low.

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RESEARCH QUESTIONS

What are the challenges facing the Niger State Internal Revenue

Service?

What are the ways to mitigate the challenges faced by the Niger State

Board of Internal Revenue?

RESEARCH OBJECTIVES

To improve tax administration at the Niger State Internal Revenue by:

- identifying the challenges and opportunities of Niger State Internal

Revenue Service.

- Making recommendations that will lead to an increased internally

generated revenue for the state.

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SIGNIFICANCE OF RESEARCCH

- Efficiency of sub-national tax authority

- Reduce reliance on oil revenue and federal allocations

- Contribution to the existing body of knowledge

- Improving IGR

METHODS

Informal Interviews and Observations

SWOT Analysis

Studying reports

Other Country studies

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Taxes and levies collected by NSIRS

• Personal Income Tax in form of Pay As You Earn (PAYE) or

Income Tax.

• Right of Occupancy Fees on lands owned by the State

Government in the Urban Areas of the State.

• Market Taxes and levies in markets financed by the State.

• Naming of street registration fee in the State Capital

• Capital Gains Tax for individuals

• Withholding Tax for individuals

• Stamp duties on instruments executed by individuals

• Pools betting and lotteries, gaming and casino taxes

• Business premises registration fee in respect of Urban areas

• Ground Rent

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IGR 2008 - 2014

YEAR TOTAL IGR in Naira

2008 2,309,892,011.72

2009 2,766,787,900.46

2010 2,930,657,530.09

2011 3,588,768,330.83

2012 3,782,827,634.99

2013 5,097,373,027.19

2014 5,150,560,614.99

Source: Niger State Internal Revenue Service

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OTHER COUNTRY LESSONS

Ghana: Tax Stamps

Tanzania: The Block Management System

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FINDINGS/SWOT NSIRS

Political Will

Legal Framework

Clear Vision and Mission

Voluntary Compliance

Stakeholder Relationship

Underutilised Revenue Sources

Newly Registered Businesses

Audit

Lack Of Autonomy & Poor Remuneration

Under Staffing &Weak Capacity

Poor ICT Framework & Cash Payments

Weak Appraisal System

Poor taxpayer database & obsolete rates

Informal Sector

Non-compliance

Low Tax Morale

Non-remittance of tax by some ministries,

departments and agencies (MDAs)

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RECOMMENDATIONS

• Administrative and Financial autonomy

• Organisational restructure:

- Comprehensive training program

- Staff morale (Remuneration and Placement)

- Employ professionals and employ based on

organizational needs

• Organization's policy of non-direct cash transactions

• Cost-benefit approach to use of consultants with a

sunset clause

• Invest in IGR generating potential: Agriculture, tourism,

and solid minerals

• A special office dedicated to the informal sector;

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RECOMMENDATIONS

• Consider the Block Management System

• The Ghana Stamp System in tandem with the 1%

minimum tax

• The Government of Niger state should invest in boosting

the tax morale of the Taxpayers

• The Ministry of Finance in Niger State should work

closely with the Niger State Board of Internal Revenue to

have a marshal development plan that will ensure that

taxation is linked to the development of the state.

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CONCLUSION

The SWOT analysis revealed that Niger State Board of

Internal Revenue has immense potential in improving tax

administration and raising the required revenue that will

reduce its reliance on the federal government allocation

Granting the Niger State Board of Internal Revenue

autonomy and improving the welfare and capacity of its

staff as well as ensuring accountability and upholding the

social contract between the government and the citizens

will be critical in ensuring that tax administration in Niger

state is revamped to meet global standards.

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Limitations & Areas of Improvement

No data on tax by tax type for detailed

analysis

Questions on Audit

Comparison with other State Revenue

Authorities in Nigeria

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