The Federal Capital Territory Internal Revenue Service (FCT-IRS) has announced plans to become the central revenue collection agency for all six area councils of the FCT starting in 2025.
Acting Executive Chairman of FCT-IRS, Michael Ango, made this announcement during the 2024 end-of-year media briefing in Abuja on Thursday.
The Explainer learned the initiative aims to streamline tax compliance and enhance transparency in revenue collection across the federal capital.
“The revenue collected will, however, remain theirs. All we are doing is to assist them to collect and aggregate it. Thereafter, the monies will be disbursed to them in their various accounts,” Ango explained.
The move comes following a directive from FCT Minister Nyesom Wike to establish a centralized revenue collection system. Ango revealed that the agency has already secured cooperation from area council chairpersons for full revenue collection harmonization.
“Globally, this is not the best practice. Therefore, Wike has directed that all the agencies in the FCT must have one central point for revenue collection,” Ango stated.
The new system will create a unified platform for FCT residents and businesses to pay taxes, levies, and fees to the FCT Administration.
This consolidation extends beyond area councils to include various Secretariats, Departments, and Agencies within the FCT Administration.
“We must have a harmonised revenue administration system whereby taxpayers in the FCT, individuals and residents who want to pay any tax levies or fees to the FCT Administration will do that at one point,” Ango said.
The FCT-IRS chairman emphasized that the centralized approach would establish a single revenue reporting point, ensuring better accountability for all collected revenues within the territory.
