FIRS Can Generate N30trillion Per Annum With STREF – By John I. Nnorom

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Today, I wish to address the problems of Nigeria Tax Economy and proffer total solution towards the generation of N30Trillion per annum. Nigeria is highly indebted and few weeks ago, Nigerians were looking at IMF option. I make bold to say that STREF is the total solution to Nigeria Problems and with STREF the Federal Inland Revenue Services can generate N30TRILLION per annum. STREF is acrimony for Strategic Tax Re-engineering and Evaluation Formula developed by me.

With STREF, it is possible for FIRS to determine with a near zero degree of uncertainty how N30Trillion can be generated within the next twelve months. I can imagine the minds of some FIRS staff already reeling with tons of questions, querying the validity of STREF claim. Is it possible for FIRS to generate N30Trillion per annum? Fortunately, Yes. In any country, where the taxman is feared, FIRS can determine the level of revenue that can be generated, under a given political circumstance and in a given period, provided that FIRS understand that MAFIA in America were driven underground by taxman. As a tax practitioner, Iwept bitterly the day that all Federal Inland Revenue Staff, who were involved in the recovery of N4.87Billion from Jimoh Ibrahim were scattered by transfers. I wrote the petition on tax evasion against Air Nigeria and Jimoh Ibrahim. What offence has these poor civil servants committed by arresting Jimoh Ibrahim- Chairman and Kinfe kassaye-CEO of Air Nigeria for tax evasion,for refusal to remit withholding tax collected on behalf of Federal Government to FIRS. These are patriotic Nigerians, working for their fatherland being humiliated for executing their duties without fear on Jimoh Ibrahim a debtor-billionaire. These FIRS professionals refused to compromise their position in the service of their fatherland. GOD have Mercy and I wish to appeal to President Jonathan to ask the appropriate authority to investigate this issue.


Few years ago, the Russian richest man was jailed for tax evasion. Even a former Vice President of America Spiro Agnew was forced to resign due to taxevasion. The Watergate scandal which forced American President, Richard Nixon to resign involves bribery, money laundry and tax Evasion. If such a highly placed personalities, can be humiliated in Russia and America, who is Jimoh Ibrahim? The most feared man in America is the tax man(IRS) and the Nigeria tax laws have the same provisions on tax crime. Failure of any tax payer, to pay tax, as and when due, within a given gracious period, creates liability for criminal prosecution. That is the international tax law, which includes Nigeria.I was following up FIRS/Jimoh Ibrahim Saga up to the point of reconciliation and Air Nigeria agreed to pay N6Billion not N4.87Billion but suddenly allthe key staff of FIRS in Jimoh Ibrahim trial were transferred.This case may be withdrawn from court against Jimoh Ibrahim.The leadership of FIRS has a big question to answer? President Jonathan needs to appoint, a fearless, strong willed and bold Chairman in FIRS.

The FIRS scattered these staff and some of them have resigned, while Jimoh Ibrahim is a free man with N6Billion withholding tax money collected on behalf of the Federal Government in his pocket. The FIRS must explain to Nigerians the offence committed by these professional and must collect this N6Billion withholding tax money, for this same reason, the MD and Chairman of Arikairline were arrested and they paid millions of Naira to FIRS. This write up is to showNigerians, what is happening in FIRS and how the tax sector can be used to drive the Economy out of debt crisis.

STREF is thetotal solution to Nigeria Economy. The Federal Government should be able to run the affairs of our nation, from internally generated revenue without any recourse to the current revenue from Federation Account.I believed that where appropriate structures are put in place, in the generation of Federal Government revenue and the process properly controlledwith STREF, N30Trillion can be generated by FIRS per annum.

STREF is a novel and holistic solution to wealth creation, which addresses the problems of revenue generation, consolidation, evasion, pilferage, corruption, apathy, uncoordinated and desultory collection modules. It is a strategy whereby the principles of re-engineering revolution is applied to revenue generation based on E-payment through the application of Tax Identification Number.When, I implemented this strategy in Abia State, the state revenue moved from N200Million to N1.2Billion, which was reported in many newspapers in 2004. STREF was a tremendous success, such that, at a time of political face-off with His Excellency OlusegunObasanjo, the Executive Governorof Abia State was able to run the affairs of the state, depending more on internally generated revenue.

STREF is what Nigeria needs now for her industrialization andeven in time of war with any nation.This year budget/Target of FIRS is N5.6Trillion and I believed that the board can achieve N30Trillion per annum.STREF is our freedom from economic crisis, which can jump start, the economy and involves the application/execution of certain section of Nigeriantaxlaw, which holds the virgin/ non-traditional taxableentities liable. I have carried out a comprehensive review of all revenue laws in Nigeria andSTREF is not in conflict with the exiting national tax laws in Nigeria.

Recently, our Minister of State for Finance, said that over 350,000 companies evade tax but I would like to say that in Nigeria today, there is in existence, an extensive and intensive practice of tax evasion more than double that figure quoted by YerimaNgama and all the incentives to deliberately encourage voluntary non-compliance backed by pocket of resistance exist everywhere. STREF primary source of income is tax evasion and taxes from Virgin area of the nation. Our investigation showed thatbusinessmen do not pay tax and that there are a number of small scale and medium sized companies that are not remitting their corporate taxes because, they do not need tax clearance certificate as their mode of operations does not have anything to do with the Government. Again there are many companies, state government and local councils which do not comply with the provisions of the existing Federal Revenue Laws. This is because of the perilous nature and unco-ordinated collection methods. While I believe that a reasonable level of compliance is likely with companies’ income tax, the same cannot be said of other relevant levies, which appears unpopular amongst the general public due to ignorance of the law or tax evasion. STREF is the total solution and has generated one hundred and fifty million Tax Codes, which will expand Nigeria revenue base, improve the revenue profile and explore the internal revenue potentials of the nation to the fullest.

STREF also developed one hundred and fifty million twelve digit Federal Tax Tracking Identification Number. These numbers and certificates will trap all non-traditional taxable entities into the government tax net as defined by the revenue law. This number will enable the nation know how many tax payers are in Nigeria and will track the taxpayer’s payment to Government Account at Central Bank of Nigeria. The Tax Payment Security Certificate will have hidden in it, Tax Identification Numbers, bar codes, magnetic strip encoder and codedfigures that cannot be forged.

To this end, STREF staff will discover the modus operandi on how, one businessman owns over six companies but is identified with only one company for official and tax purposes. STREF will capture these tax evaders and discover other secret tax entities. For the purpose of achieving the revenue target of N30TRILLION, the country will be divided into six zones, with Zonal coordinators, who will lead the various teams.

The STREF teams will work with Federal Inland Revenue services, State Internal Revenue Board and the Local Government revenue offices spread all over the nation. A communiqué will be issued amongst the Federal Government, the State Government and the Local Government to define the nitty-gritty of the grey areas not covered by the current legislation.The Joint Tax Board should be a central clearing house for all tax generating tier of the nation. All tier of government shall be networked into a National tax data base so that all joint revenue generatedfrom various tier of government will be credited through electronic payment system. The national tax data base shall be linked to tax authorities outside Nigeria so as to capture all taxable entityand avoid multiply taxation.

However, for this administration to achieve this dramatic breakthrough and quantum leap in revenue generation based on STREF, we must adopt top-down global approach in re-engineering and restructuring of the none-traditional revenue base of our great nation.

My claim is based on my experience as a tax lecturer and former Special Assistant on Internally Generated Revenue in Abia State. When, I introduce a similar insight in Abia State, few years ago, the state revenue soared from N200Million to N1.2Billion.I have executed the same insight in Lagos State when I was appointed Resident Market Agent under the informal tax sector.The Late President Musa Yar”adua approved the STREF Federal proposal in 2007, then titled Freedom Token but I could not execute the proposal due to the bureaucratic nature of the ministry of finance.I am offering this idea now free to our nation dueto the economic nature of our nation finances. Nigeria is in debt and I do not want IMF loan in Nigeria. I introduced free Tax Identification Number in Nigeria years before FIRS started using the concept.

In conclusion, when I told Nigerians that Air Nigeria was a flying coffin, which can drop anytime from air, I was persecuted and few Nigerians did not believe me. However, when patriotic Nigerians took up this issue, The Nigeria Civil Aviation Authority suspended, Air Nigeria, 100 souls were saved from another imminent plane crash. Despite all the efforts to label me a liar, a theft, a man without integrity by Jimoh Ibrahim, National Mirror and Air Nigeria, today the Airline is out of operational existence, which I predicted in my petition published by Sahara Reporters and Aljazeera. I thank Nigerians; I have been discharged and acquitted from all Jimoh Ibrahim criminal cases filed against me by the police based on the instruction of the Inspector-General of Police.

Again, I took up the issue of N33.5Billion, Bank of Industry loan granted to Air Nigeria, guarantee by UBA but diverted into Nicon Investment Ltd, a company owned by Jimoh Ibrahim to the National Assembly. Jimoh Ibrahim under oath denied that he stole this money out of Air Nigeria Account but the whole Nigeria senate found him guilty and later passed a resolution on 29th Nov,2012 asking the Governor of Central Bank of Nigeria to recover this loan from jimoh Ibrahim.

Finally, when I raised the alarm that PAYE taxes, pension and Federal Taxes deducted from Air Nigeria transactions were not remitted to the relevant authority, FIRS investigated the allegation, found Jimoh Ibrahim guilty and charged him to court. Today all Ex-Air Nigeria staff numbering 790 are in court seeking for judgement to recover their unpaid salaries, unremitted taxes and pension.

I have to mention the above incidents because STREF will generate controversies. I make bold to state that FIRS from the above analysis can generate N30Trillion per annum and Federal Government can depend on FIRS income to manage Nigeria Economy without IMF. I rest my STREF claims. Thank you, patriotic Nigerians.

JOHN .I. NNOROM

E-Mail: john.nnorom@yahoo.com

Tel: 08033064519,08053029114

 

8 COMMENTS

  1. John, I commend your courage and expertise in tax matters. I pray that FG should implement your recommendation.

  2. Our president Goodluck should read this proposal and use it to move our nation to the next level, after all it is offered free to Nigerians.

  3. John, where have you been all this while? Great article and thanks for exposing jimoh ibrahim fraud secrets. Pls always watch your back.

  4. I was one of your student in 1987. You have not changed little Lilly, always generating tax ideas. Wonderful, wonderful.

  5. I agree with your STREF proposal but Jimoh Ibrahim is obasanjo boy, I do not think, he can be prosecuted in Nigeria.

  6. Well done John. I wish the fools at FIRS will listen and the President act very fast. Why should they transfer those poor civil servants that arrested jimoh ibrahim?

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