ColumnsNigeriaOpinionPoliticsThe Salient Reforms in the Anambra Internal Revenue Service 

“One of the major roadblocks to a government’s projects or proposed programmes is lack of sufficient funds…” —Ebuka Onyekwelu

One of the major arguments in support of democratization and an open government system is because decentralization of power. Just as surely, the major criticism against the concentration of power is the likelihood of abuse. However, systems grow and mature gradually, moving from a closed structure and management to an open and accountable one. This growth, when it happens, then constitutes a challenge to abuse of office as well as helps to curb corruption and other defects of a centralized system.

 

Before now, the management of the Anambra State Board of Internal Revenue Service – AIRS, has been unclear in the sense that it is a board without any ‘board’. Therefore, the only leadership figure has been the Chairman of a ‘board-less’ board. This has been the case till recently, notwithstanding that successive governments have made efforts to reform the AIRS. In fact, more serious reforms in the management of the agency commenced during Governor Obiano’s administration. The AIRS became more organized in the manner it undertakes its mandate and systematized in the way it goes about collection of revenue. The corporate image of the AIRS then began to experience an upgrade. Before that time, Governor Peter Obi had constructed a corporate office for the agency. It is that corporate headquarters that they are still occupying to date. So, in a way, the AIRS might be one of the agencies of government that has often experienced major transitions from successive governments. The reason for these reforms might not be farfetched. Every government needs money to finance its projects and programmes. One of the major roadblocks to a government’s projects or proposed programmes is lack of funds or lack of sufficient funds. As a result, there is a high demand on how to raise the revenue base of the State. At least, Anambra state is in the same league as Lagos, Kano, Ogun, and Kaduna reputed for massive commercial and industrial activities. Therefore, internally generated revenue ought to be a major source of public finance for Anambra. But sadly, it is not.

For Governor Soludo, what is the way forward? First, Soludo started by declaring agboros or touts, persona non grata in the business of revenue collection. He then moved to build on the automation of revenue collection commenced by his predecessor, Willie Obiano. Although the informal revenue was largely unable to be automated, as in fact expected, I would add,  the government has continued to receive unfavorable reviews in that regard. But that was not all the governor did. The major reform Governor Soludo has made in the AIRS is the constitution of the AIRS as a proper business entity, thereby decentralizing power from the Chairman who had acted as the sole administrator of the agency in the past. The Governor had appointed Mr. Benjamin Anierobi Okafor, as the Executive Director of AIRS, in charge of Assessment. Similarly, Dr. Christian Madubuko was appointed the Executive Director in charge of Operations. While Mr. Okafor is from Anambra Central, Dr. Madubuko is from Anambra North and Dr. Ezilo, the current Chairman of the AIRS, is from Anambra South.  Looking at the current structure in comparison to the centralized system in place before at the AIRS, this by far, is the most consequential reform the governor has made in revenue generation and fiscal responsibility. The implication is that Dr. Ezilo, the current chairman of the AIRS can no longer take full, unilateral decisions or actions on behalf of the agency. On the other hand, the government of Anambra state, the AIRS, and the taxpaying community, would no longer depend on the character, professional competence, and discretion of one man in matters of revenue generation for the state. The sole proprietorship of the AIRS has now been put to rest in the best interest of the public good.

As the Executive Directors thinker on the day-to-day operation of the AIRS, and indeed take full charge of the mandate of the AIRS, while the Chairman oversees the activities of the Board, a higher value addition is expected to come in the form of increased revenue for the state, which would mean increased projects and programmes of the government and for the people, increased service delivery and proper accountability of public finance.

Therefore, following the governor’s confirmation of Dr. Ezilo as the new Chairman of AIRS, in the coming days, weeks, and months, the AIRS is expected to move in a different direction or at least nuanced in the discharge of its duties. This is because certainly, with the introduction of Executive Directors into the management structure of AIRS, it would not be business as usual, and not when someone like Dr. Christian Madubuko who once resigned from his position in the government as Commissioner, is an Executive Director in that agency and Mr. Ben Okafor, a reputable accountant of good standing.

Ebuka Onyekwelu (Staff Writer)
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