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Economic Confidential, April 10 2008

 

BUSINESS

 

Senate Approves Omoigui of FIRS for Another Term

After a long delay and suspense, the Senate has confirmed the nomination of Mrs. Ifueko Marina Omoigui Okauru as the Executive Chairman of the Federal Inland Revenue Service, FIRS, for a fresh four-year term.

Her nomination and screening were not without the usual political intricacies, Economic Confidential gathered but her competence, experiences and achievements she recorded in her first tenure stood for her.

During the confirmation at the Senate, there was no dissenting motion when Chairman of the Senate Finance Committee, Alhaji Ahmed Maikarfi, moved that the nomination of Omoigui-Okauru as FIRS Executive Chairman by President Umar Musa Yaradua be confirmed by the Senate.

Senator Bob Effiong seconded Maikarfi’s motion. The Senate in the committee of the whole ratified her appointment.

Though over half a dozen senators commented on the sterling performance of the FIRS Chairman in the last four years, while a few admonished her to straighten out carping about appointment spread, no member of the upper chambers stood against her nomination.

Nominated shortly before former President Olusegun Obasanjo left office in May last year, the last Senate asked their incoming colleagues to exercise their judgment in coming to a decision on Omoigui-Okauru.

President Yaradua re-nominated her as FIRS Executive Chairman in June last year. The Senate referred the nomination to its finance committee on September 11, last year.

Presenting the finance committee report to the Senate yesterday, Maikarfi noted that having perused Omoigui Okauru’s professional, technocratic and academic records, the finance committee also took steps to verify the records as well as the veracity of the petitions filed against her. “This was despite the fact that some of the petitions were in abeyance of Senate Rule 41 that unsigned petitions should not be entertained”, Maikarfi said.

Though Ifueko Omoigui could have stepped on toes, Maikarfi stated that the committee found no reason not to recommend her for confirmation by the Senate. “Be that as it may, it is the prerogative of the committee to consider and debate that her nomination should be confirmed.

Senator Bob Dickson Effiong (Akwa Ibom) who seconded Maikarfi’s motion saluted Omoigui Okauru and her team’s work in the last four years that has contributed to the sanitisation of the tax regime in the country. Senator Patrick Akwashiki (Nasarawa) spoke in the same vein saying: “We have worked with her when I was in the House of Representative committee on Finance.” She made the organisation (FIRS) what it is today. There were so many loopholes in the past. She did so well. I know she will continue the good works.

Senator Ehigie Edobor Uzamere, (Edo South) stated that Omoigui Okauru has improved revenue generation in FIRS…She is a woman who understands what the nature of leadership that this country needs now. Confirming her will tell the world the nature of men and women that are in this chmabers.

Mustapha Mohammed (Jigawa) said he wants to support the report presented by the Maikarfi committee. “This nominee was nominated by President Yaradua having been satisfied with her performance. A committee of this house says she is qualified. We should be objective and eventually confirm her.

Senate Whip Kanti Bello (Katsina) was unequivocal that he was initially against her nomination. This, he said, is on account of the claim that tax waivers were abused under her. But since these have been found out to be unfounded, “I have no hesitation in supporting her nomination. Senator Kabiru Gaya who toed a similar line, saying her CV (Curriculum Vitae) speaks about her. Gaya however admonished the FIRS Executive Chairman, to reflect federal character in her appointments.

Former Vice President of the Institute of Chartered Accountants of Nigeria, ICAN, Senator Felix Kolawole Bayomo also saluted Omoigui Okauru’s sterling standards. “As a member of the finance committee and a former VP of the Institute of Chartered Accountants of Nigeria, I want to say that I know the nominee. We have worked together on several programmes. She is a competent and diligent person. She radiates diligence in all that she does. This lady has proved her diligence in the way she has carried out her duty as the Executive Chairman, Federal Inland Revenue Service. I want her to be confirmed.

Senator Manzo G. Anthony (Taraba North) another member of the finance committee said the committee believes that everyman and woman is innocent of any allegation against her unless proven otherwise, adding that women are sometimes misunderstood.

While Senator Basssey Ewa Henshaw (Cross River) noted that the FIRS Chairman contributed to the reversal of the Value Added Tax Rate VAT from 10 per cent down to 5 per cent, Senator Lee Ledodgbo Maeba (Rivers South East noted that Omoigui Okauru’s plight was on account of her opposition to tax consultants who smile to the banks while the nation bleeds.

At the close of their contributions, Senate President David Mark put the motion to a voice vote, with the assenters carrying the day. There was no dissenting motion.

Section 4 of the Federal Inland Revenue Establishment Act 2007 states thus: “The Chairman and other members of Board, other than the ex-officio members shall hold office (a) for a term of four years renewable only once”

Under the FIRS Chairman, the FIRS generated N8 trillion from various taxes in the last 11 years. A large part of this revenue was generated in the last three years.

The highest figure of a single annual generation of about N2 trillion was recorded in 2006. The previous two years show a record of N1.0 trillion in 2004 and N1.8 trillion in 2005.The least figure was generated in 1998, with the Service posting N99.4 billion. The service generated N106bn in 1996, N 131 billion in 1997, N171 billion in 1999 and N455 billion in 2000. Others include N587 billion in 2001, N434 billion in 2002 and N698 billion in 2003. Deliberate efforts by the FIRS led to a marked increase in generation of non- oil revenue.

Last year, the agency generated N1.7 trillion.

This was made possible with the training and retraining of 4,400 management, senior and junior staff (out of the current 5,600 staff in place), specialised and industry/issue specific training and study Tours, within and outside the country and a streamlined office structure that eased taxpayers’ burden.

Hitherto, sparse training was in place. Most staff had received no training for over 10-years. As a result of the reorganization and realignment of functions, over 2,000 new job openings have been created with improved opportunity for career growth and development within the service.

Under Omoigui Okauru, the FIRS also deployed Information Communications Technology, ICT to plug $92 million (N12billion) that traditionally vanishes into private pockets. This came with the automation of the tax collection system, a system that enables her or any authorised official, to track- from their table--daily collection data from any part of the country.

Collection is swept automatically through the Interswitch-based collection system from the 12 collecting banks to the lead banks and from thence to the Central Bank of Nigeria (CBN).

Omoigui led the legal, administrative and structural changes that culminated in the passage of four bills by the National assembly: (FIRS (Establishment) Act 2007- which gave the autonomy to the Nigerian tax agency, Value Added Tax (Amendment) Act 2007, Companies Income Tax (Amendment) Act 2007, National Automotive Council (Amendment) Act 2007.

Born 45 years ago, daughter of Nigeria’s former Surveyor-General, was the valedictorian at her class, where she made a First Class in Accounting and got the highest number of prices ever won by any individual in the Faculty of Business Administration at the University of Lagos, Nigeria. Omigui Okauru topped this with a Masters degree in Management Science from the Imperial College London.

Omoigui was a Partner in the firm of Arthur Andersen and Co -now KPMG Professional Services and Accenture and was Chief Responsibility Officer of ReStraL Ltd., a leadership and management services company, which she founded in 1996.

A fellow of the Chartered Institute of Accountants of Nigeria, and a Chartered Tax Practitioner, Omoigui is also involved in community development in many non-governmental organisations: FATE Foundation – developing aspiring and emerging entrepreneurs, Communicating for Change – raising awareness on environmental and developmental issues, INTEGRITY – promoting integrity and transparency for sustainable development, Community Development Foundation – providing micro finance for development, Oba Otudeko Foundation – empowering Nigerians technologically for the 21st century, Lady Mechanic Initiative – empowering and training women to be world-class mechanics.

An active participant in the Nigeria Economic Summit Group – a Public_Private sector think tank involved in providing support to high level policy development in the country at various times, Omoigui loves travelling, reading autobiographies, problem (puzzle) solving, watching movies, singing and dancing.

Please read her profile as Economic Confidential Personality of February 2007from this link:

Omoigui: A Leader on the Rise

   

SPECIAL FOCUS

List of Major Debtors in Nigeria

 

List of Bad Debtors in Federal Mortgage Bank of Nigeria (FMBN)

 

NEMA@10: The Story So Far

 

Questions and Answers on the Examinations of the 14 Banks by CBN

 

FEATURES

Africa's Foreign Reserves: In Reserve For Who?By Chika Ezeanya

 

Churches and Mosques Should Pay taxes - Mcdonald Koiki

 

Deregulating Robbery in Nigeria By Kola Ibrahim

 

Understanding Monetary Policy By Abubakar Jimoh

 

The Making of Ideal Economic Policies By: Salim Salihu Muhammed

 

The Putrid Mess Also in CBN By Les Leba

 

Still on Early Warning Alert System in Nigeria By Yushau A. Shuaib

 

District 9 and the Can of Wild Paradox by Segun Imohiosen

 

Nigeria: Time to Check to the Drift By Dansulieman Mohammed

 

Golden Casket: Between Gani Fawehinmi and Wacko Jacko- By Yushau A. Shuaib

 

NIGERIA@49: Tracing the Economic Intervention- By Abubakar Jimoh

 

NASENI: Striving to end Nigeria’s reliance on foreign good – By Umar Kari

 

Macroeconomic Framework for an Independent Economic Recovery- Salihu Muhammad

 

When Sony Undermines Campaigns of Akunyili and Aoandoka- By McDonald koiki

 

Archetypal Resurgence: The Lamido Sanusi Revolution- By Segun Imohiose

 

Banks and Money Laundering- By Les Leba

 

Oronsaye’s Civil Service reform- By hussaini Sani kagara

 

New Policy in the Civil Service: Hypocrisy at Work? –By Tope Ajakaiye

More Features

 

TAX MATTERS

* Church and Mosque Not Exempted from Tax - FIRS

… Use of Consultants for Tax Collection is an Aberration

*Finance Minister Advocates Partnership on Tax Issues

*FIRS Reopens PAN, Vows to Prosecute Defaulters

*How We Generate N808bn in Tax Revenue Within Six Months- FIRS Boss

*FIRS Generates Taxpayers Numbers for Bank Customers

*Historical Milestone as Online Tax Payment Begins

*FIRS Seals Two Oil Companies Over $610m Tax Arrears

*Firms Owed Govt N260b in Taxes

*Tax Identification Number to Reduce Tax Evasion- FIRS Boss

*Revenue Agencies to Make Full Disclosure- Finance Minister

*FIRS Delists 2 Banks over Non-Remittance of Tax