Fending off accusations of targeting the poor, the President Bola Tinubu-led Federal Government has unveiled a sweeping plan to utilise a central database compiling information from phones, bank accounts, travel records, and business registrations to identify and tax Nigerians currently skirting their obligations.
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, outlined the strategy during the National Summit of Fiscal Responsibility in Abuja on Friday.
According to Oyedele, the centralised database will leverage the National Identification Number (NIN) for individuals and Business Registration Numbers for companies.
This system, he said, will cross-reference information such as phone spending habits, bank account balances, and travel records to identify potential tax discrepancies.
Oyedele explained: “The system will identify an individual who spends N4m on groceries annually across multiple bank accounts but reports only N20,000 in income. This inconsistency will trigger a reconciliation process.”
He emphasised the system would not rely solely on individual reports but utiliss “third-party information” to verify income streams.
“When you import 1,000 mobile phones, the government is aware,” he said. “This information will be linked to your business records, ensuring a complete picture of your transactions.”
The plan also introduces VAT fiscalisation, a system that automatically transmits a copy of every sales invoice to the government.
“If you refuse to use the official invoice system,” Oyedele warned, “the discrepancy between reported sales and issued invoices will expose unreported income.”
Oyedele also offered an insight into the Committee’s strategy to secure political endorsement for the reforms.
He revealed that the committee developed a narrative that appealed to politicians’ reelection priorities.
“We highlighted the exemption increase for low-income earners as a policy protecting the poor,” he said. “This messaging resonated with politicians facing upcoming elections, making the reforms more attractive.”
The government’s commitment to this data-driven approach to tax collection signals a significant shift in its tax enforcement strategy. The success of this initiative hinges on public acceptance and effective implementation to broaden the tax base and generate much-needed revenue for the nation’s development.
Credit: thenationonlineng.net
