Thursday, April 19, 2012

Omoigui-Okauru: One good story out of Nigeria.


In journalism, bad news, oftentimes, is the best news of all. When floods ravage communities and bombs explode, killing hundreds; when a man in the street who, ordinarily, should have no place in newspapers, throws his wife off the balcony of a three-storey building; or, as taught in journalism schools, when a man bites a dog, it is a big story.
The “badder” the news, it would appear, the bigger the story. And the better it sells. Ask both editors and newspaper readers. They will tell you that news of multi-billion naira pension fund scams and the sleazy details of the fraudulent, fuel subsidy scheme make more interesting writing and reading than that of President Goodluck Jonathan launching one boring scheme or the other in Abuja.
But, for many Nigerians who have been inundated into “unshockability” by a deluge of bad news in recent times, bad news hardly stand out, these days. Stories of corruption, rape, bombing, kidnapping and armed robbery are fast becoming the norm, and not the exception. They have become trite. Regular fare. Routine. One would be almost surprised to open a newspaper any day and not read about a case of corruption, murder, rape or robbery.
That is why the bombing on Easter Sunday was almost predictable. It would have been odd, somewhat, for Boko Haram not to unleash terror on Nigerians on that significant day.
However, from the overflowing basket of unsavory stories from Nigeria, in recent times, one good one stands out. It is that of the former chairman of the Federal Inland Revenue Service (FIRS), Mrs. Ifueko Omoigui- Okauru, who bowed out of service last week.
The inspiring story of this notable Nigerian woman is that of a heroine who served the nation meritoriously for eight years as head of the national tax agency, and increased tax revenue to the federal government from N1.2 trillion in 2004 to N4.6 trillion in 2012, without the slightest whiff of corruption trailing her. In today’s Nigeria, that is the public administration equivalent of climbing Mount Everest!
Newspaper reports on this remarkable First Class Accountancy Graduate of University of Lagos underscore her integrity and uncommon vision for tax administration in Nigeria. For example, there had been controversy on when her tenure was due to expire prior to her disengagement from FIRS last week. She was appointed into office for a four-year by former president, Olusegun Obasanjo, on May 3, 2004. Three years later, in 2007, an Act establishing the FIRS came into effect. The Act stipulated a limit of two terms for the chief executive of the agency. When her four-year term in office expired in 2008, the late president, Umaru Yar’Adua, reappointed her for another term.
Since, then there has been controversy on whether the period she was in office before the FIRS Act of 2007 amounted to a term or not. There were, indeed, unconfirmed rumours that she was trying to get another term based on this confusion.
But, last week, she laid the controversy to rest when she stepped down honorably. She reportedly told some journalists in unequivocal terms: “I’ve done two terms. I came in on May 3, 2004. The first term started before the FIRS Act and it’s now two terms. Whether it’s before or after (the FIRS Act) does not change the fact that I was in a term of office, (between 2004 and 2008) and this (2008 – 2012) is another term of office. So I have done two terms.
“And you know life is such that when you are used to something, you think it would never end, but it would always end. So please, there is nothing like running away. My term has ended and it’s time to say thank you and goodbye.”
What a gracious and exemplary way to bow out of office!
Reports that have trailed Omoigui-Okauru’s exit from the FIRS top seat after two terms in office point her out as an Amazon that is worthy of both celebration and engagement in other critical areas of our national life to which her experience these past eight years is best suited.
The Federal Inland Revenue Service was not in a good enough shape to increase tax revenue generation at the time of Omoigui-Okauru’s appointment in 2004. Some reports indicate that the service was in disarray, and generating much lower revenue than it was capable of. Indications were that, as with virtually every sector of our national life, there was corruption. There were reports of non-remittance of tax collected, widespread tax evasion by individuals, private and public organisations and fraudulent revenue leakages.
There was so much impunity as much of the taxes collected ended in private pockets. Most highly placed persons, including the president, did not pay taxes, as they should. Nigeria was an Eldora do for both big and small time tax evaders. Omoigui-Okauru did much to change the situation. Coming to the job with many years of experience with the notable accounting firm, Akintola Williams and Co. and Arthur Anderson, she chanced upon FIRS with the same missionary zeal that Mrs. Dora Akunyili changed the face of the National Agency for Drug and Food and Drug Administration and Control (NAFDAC), and Ngozi Okonjo-Iweala negotiated Nigeria’s exit from the Club of creditors during her first coming as Finance Minister.
In the eight years that she held sway at FIRS, she superintended the institution of a new tax system and a harmonised tax reform agenda, which significantly improved tax returns. The tax agency, under her watch, launched a new National Tax Policy, which is expected to help deliver the government’s transformation agenda for taxation. The policy has been praised in several quarters by those who say it will help maximize revenue generation by all tiers of government, and improve fiscal responsibility.
It has also been said that it will help ensure income re-distribution by reducing tax payable by low and medium income earners. A Personal Income Tax Amendment Act was passed in 2011. It requires the president, vice president and state governors to pay tax on both official and non-official income. A new special tax regime is being formulated for those in the informal sector of the economy. The Act also proffers a solution to the problem of multiple taxation, over which businesses have been complaining in recent years. She also initiated the ongoing review of all tax laws in Nigeria.
Under the watch of this golden tax lady, many organisations were convicted for tax fraud and evasion. She also did a lot to improve the pay structure and working conditions of FIRS personnel.
All Nigerians will soon have Tax Identification Numbers (TIN). Omoigui-Okauru also initiated establishment of tax appeal tribunals at which all disputes on tax matters can be adjudicated. She also emplaced strategies for continuing good performance of the agency, including the 2012 – 2015 medium term projection.
In spite of these achievements, the lady, who also has a Master of Science degree in Management Science from Imperial College, University of London, has remained her humble, self-effacing self.
In response to praises for her achievement, she was quick to say all she had done in the last eight years was to build a foundation for tax administration in the country. She told journalists: “we have not even started putting anything on that foundation. It looks like we have achieved a lot but there is still so much more that still needs to be done.” This humility, coming from one who did so much to raise revenue from taxation from N1.2 trillion to N4.6 trillion in eight years, is touching. This is more so when we compare her with some former political office holders who devoted their entire tenure to looting the treasury, yet came out boasting of non-existing achievements. Her successor will need to put in his best to improve on her performance and continue to make FIRS a notable revenue earner for the government.
Omoigui-Okauru is, indeed, an outstanding Nigerian woman. She deserves all the accolades coming her way. There is no arguing the fact that Nigeria is in dire need of people like her. I believe she can replicate the FIRS transformation success story in other sectors of the economy, soPresident Goodluck Jonathan will do well to charge her with greater responsibility. This, certainly, is one woman who can help with the transformation agenda of this government.

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