The Kwara State government is bent on weaning its economic base off the apron strings of the dwindling federal allocation. As a result, the state inaugurated its rebranded Internal Revenue Service (KWIRS). But it is not just about giving it another; it is about firming it up to ensure robust, efficient and effective tax collection.

"Today, we take concrete steps towards making Kwara State more economically sustainable and financially viable amidst the challenges of a turbulent national economy," Governor Abdulfatah Ahmed said at the inauguration of the service head office otherwise known as Revenue House in Ilorin, the state capital.

"This event demonstrates our commitment to creating a diverse and solid revenue base for the state. It also underlines our resolve to continually meet our obligations and insulate our economy from the instability of global oil market."

Alhaji Ahmed said the state has the potential to generate N60 billion in revenue annually. The governor added, saying that from available records, the state loses N5 billion annually from its IGR due to leakages and inefficiencies.

He said that KWIRS has been mandated to mobilise revenue, block leakages and expand the state’s revenue base with a monthly target of N5 billion. "This is a significant increase from the N800m we used to generate," he said. "Indeed, some people are of the opinion that this target is unrealistic. I disagree. Kwara State, I am convinced, has the population, commerce, resources and opportunities necessary for achieving that target of N60 billion annually.

"Let me also add that a desk review of the previous revenue collection process showed we were losing about N5 billion annually due to inefficiencies and leakages. "Therefore, through the newly established KWIRS we intend to plug loopholes in our revenue collection system and ensure that all revenues accruable to the state government are remitted accurately and promptly.

"Our goal is to ensure that Kwara State is economically viable and self-sufficient, rising from our current position to achieve the second highest IGR per capita in Nigeria by 2019." The governor added that: "The recent fall in global crude oil prices has led to a significant decrease in the funds available for distribution to federal, state and local governments from the federation Account.

"In our case, monthly allocation has dropped from an average N3.4 billion to N1.4 billion monthly, leading to a N1 billion deficit in recurrent expenditure every month and leaving little for infrastructure. Yet, the state government requires N2.4 billion for workers' salary alone.

The truth is no state can lay claim to self-sufficiency or deliver the required social good for citizens without an effective tax system.

"Moreover, in our commitment towards ensuring proper distribution of social amenities to our people, I am pleased to inform you that the state government is introducing the Kwara Resident Identification Number (KRIN) today. This is a unique number allocated to all residents to enable them access government services while also serving as a form of identification."

He warned that "anyone who evades or avoids tax is breaking the law and will be punished according to those laws if found guilty. Also, anybody found obstructing the work of KWIRS will be dealt with appropriately.

The governor added that "I solicit the support of all stakeholders in Kwara State towards the implementation of this new IGR drive as it will save the state from financial crisis and assist the government to further meet its obligations to the people. Let me also use this opportunity to reassure the people of Kwara state that KWIRS was not established to impose fresh taxes.

Rather, its mandate is to make revenue collection and management more efficient. I urge all businesses and individuals in the state to perform their civic duty by paying their taxes. "We cannot aim for tax-driven prosperity and economic advancement while refusing to fulfil the obligations that create those standards we aspire towards."

"This administration had long envisaged that the global search for alternative sources of energy would lead to a possible drop in oil prices with the consequent multiplier effect on government revenues.

"As a proactive government, we repositioned ourselves to focus on ways to increase our IGR as far back as 2013. One of the strategies we identified was to restructure our revenue collection system.

Earlier, the Chairman of KWIRS, Dr Muritala Awodun said, "We have chosen to systematically move our revenue journey from the locomotive train that has dragged it from about N100m monthly to N600m monthly between 2003 and 2010, and to about N850m in 2014. As we embark on the journey we ask that you tighten your belt and enjoy your flight as we coast on the journey of a monthly average of N1 billion collection in the first quarter, N1.5 billion monthly in the second quarter, N2 billion to N2.5 billion monthly in the third quarter and N3 billion monthly by the fourth quarter of 2016 with a total collection target of N24 billion for the year 2016."