Austerity Measures: Bad News For Billionaire Awa Ibraheem, Tax Collectors, As Nigerian Governors Go For Their Jugular
You never see him coming. And you are never likely to run into him at social gatherings or where champagnes are being popped with school-boy abandon. Patently unobtrusive and easy-going, yet, Dr Abdul Wahab Awa Ibraheem, the CEO of ICMA (Integrated Consultancy Management Accountants) Professional Services, a leading public revenue consulting firm, is as wealthy and connected as they come.
Though he enjoys the good life that his connections and consultancy firm have offered him in bountiful bounds, Dr Ibraheem keeps a low profile, preferring to make money in tonnes and enjoy the comfort of his Rolls Royce and other luxury cars; or the company of his two wives, one of who is OJ, theChief Executive Officer of Glamour Lounge Salon and Spa in Ikeja, Lagos. The other is Faridah and she is not doing badly in her own right. When not at work, you might find him on different golf courses around the world or watching his favourite team, the Manchester United Football Club.
For clarity, Dr Ibraheem’s company provides professional services to state governments and private organizations by bringing the benefits of private sector-efficiency to bear on the operations of the public sector while also supporting the former with cutting edge services.
This is Ibraheem’s USP and he has penetrated several state governments where he is on partnership to drive their Internally Generated Revenues. In the course of doing that, Ibraheem has made good for himself and his clients who trust him to always keep his side of the bargain with them and protect their interests for the future. Stories have been told about how he ensures that his client-governors benefit immensely from whatever accrues to him in their states, which ensures that every party is happy and feel secured about their money.
However, for Ibraheem, the news doing the rounds is not heartwarming at all. The Nigerian Governors’ Forum (NGF) has decided to stop contracting the collection of taxes to consultants to reduce expenditure and combat declining states’ internally generated revenue (IGR). Speaking at the sixth IGR national peer learning event (PLE) in Abuja on Monday, Kayode Fayemi, NGF chairman and Ekiti state governor, said the huge commission paid out to contractors can be used to boost the finances of states.
Fayemi said the planned review of the policy on revenue collection by states was part of the reforms being considered to boost financial outlooks at the sub-national level.
He said other reforms planned by the states include “ending the contracting-out of tax collections and assessments”.
He said the NGF has decided to increase collaboration among internal revenue services; ministries, departments and agencies (MDAs), and local governments; roll out tax-for-service initiatives; scale-up cashless payments; and deploy geographic information system (GIS) to support effective land administration and property taxes.
According to him, 2020 has presented states with a series of challenges to deal with, ranging from COVID-19 pandemic to the second economic recession in five years.
“Unfortunately, the decline in oil prices that followed the global lockdown and the social unrest, which echoed the demands of the #EndSARS protests, further worsened the country’s economic and social conditions for months,” the governor said.
“This exacerbated the already vulnerable fiscal environment for governments at both the national and sub-national level.
“Other accompanying trends have included rising inflation rate, degrading exchange rate and growing unemployment.”
Fayemi said the need to improve government revenues to adequately service planned expenditures cannot be overemphasised.
According to Fayemi, Ebonyi, Gombe and Yobe states recorded more than 50 percent growth in IGR despite the economic challenges.
In her remarks, Zainab Ahmed, minister of finance, budget and national planning, said the finance bill 2020 will amend extant laws to facilitate and strengthen revenue mobilisation and growth in 2021.
She said the laws to be amended include the capital gains tax act; companies income tax act; personal income tax act; tertiary education trust fund (establishment) act; customs and excise tariff (consolidated) act.
Others are value-added tax act; Federal Inland Revenue Services act; Nigerian export processing zone act; companies and allied matters act (CAMA) 2020; and public procurement act. (The Capital)
