FIRS shuts down firms over VAT

Besides its enviable N75 billion internally generated revenue (IGR) and the N26 billion federal allocation figures recorded in the first quarter of this year, the Lagos State government has said it also saved N5.990 billion through the implementation of the Treasury Single Account (TSA) policy.

At a press briefing yesterday, the state Commissioner for Finance, Dr. Mustapha Akinkunmi, said the policy had helped in bringing sanity to the state’s revenue system.

According to Akinkunmi, the implementation of the TSA had enhanced transparency and efficiency as well as boosted revenue collection in the state.

“ The present administration has successfully re-engineered the state’s outstanding internal loans to reduce burden on IGR and technically saved N3.8 billion per month and it has been applied continually for capital projects.

“This was achieved by re-negotiating interest rates from an average of 18 per cent monthly (N5.35 billion monthly payment) to 12.5 per cent (N1.52 billion monthly payment). The state restructured its outstanding bonds from bullet payment to amortising payment to reduce debt service resulting in huge savings recorded from this initiative.

“Through this, we have also achieved savings of over N500 million in monthly contributions to Consolidated Debt Service Account (CDSA) and over N40 billion saved in interest payments over the lifetime of the instruments,” he added.

Meanwhile, offices of Globacom Limited and Erin Petroleum Nigeria Limited, formerly known as Camac Petroleum Limited, in Lagos were closed down by the Federal Inland Revenue Service (FIRS) yesterday.

The telecommunications company was shut for alleged failure to remit N24.3 billion in Value Added Tax (VAT) and Erin Petroleum, N107.3 million and $10.6 million respectively.

The closure of the companies followed their alleged refusal to abide by a six-week notice given to them by FIRS.

FIRS Director of Enforcement, Emeka Obiagwu, who led the agency’s team, directed them to seal off all the work stations of Globacom such as the Globacom Towers at Mike Adenuga Close, GloWorld at Adeola Odeku Street and the service station at 17, Saka Tinubu Street, all on Victoria Island, Lagos.

At Erin Petroleum, the FIRS team ordered staff to vacate the server room, administrative room and other offices.