The Bala Mohammed Way
Most of the thirty six states of the federation depends largely on monthly allocation from the federation including the federal capital territory Fct Abuja to pay salaries and execute developmental projects.
With the dwindling resources across the globe, (Nigeria inclusive), state governor’s finds it difficult to pay salaries and execute developmental projects at the same time.
In line with this ugly development, Governor Bala Mohammed who assumed office in 2019 came with a Blue print on how best to develop the state, using the Bauchi state internal Revenue service BIRS to augment what is accruing to the state as monthly allocation from the federal government.
In his determination to explore creative ways of funding the many infrastructural projects, Governor Bala Mohammed appointed an astute tax administrator Alh Muazu Usman as the Executive chairman, Bauchi state internal Revenue service BIRS (an office he once held and brought alot of reforms in tax administration in Bauchi state).
Bauchi state being a civil service state is faced with so many financial challenges and upon assumption of office, the BIRS Boss in line with Governor Bala mohammed’s tax driven policies, overhauled the Bauchi state internal Revenue service by creating avenues for harnessing previously untapped Revenue and block leakages through which the state was being shortchanged without posing any untold hardship on the tax payers in Bauchi state.
For instance, reports indicates that in the entire four years of the previous administration, only 27billion Naira was realized as internally Generated Revenue IGR of the state.
With various reforms however when Governor Bala Mohammed assumed office in 2019, there are Sharp increase in revenue which rose to about three hundred percent where from 2019 to 2022, the Bauchi state internal Revenue service BIRS generated the sum of 42.68 billion naira as internally Generated Revenue IGR.
This increase in revenue generation accounts for the many infrastructural development across the state as Governor Bala Mohammed has repeatedly commends the state Revenue service BIRS for its efforts with firm determination to continue to use little and do alot of projects.
Apart from impacting positively on the provision of basic social amenities to the people, development partners have developed greater confidence in the state’s ability to meet their obligations, particularly the financial flow in prompt payment of counterpart funds.
The following measures assisted the Bala Mohammed led administration and the Revenue office in recording what tax administrators may simply puts” remarkable success and increase in revenue generation”.
- The implementation of the Treasury single account TSA.
- Automation of Revenue administration and the adoption of multiple Revenue payment options for tax payers.
- Passage of the Bauchi state tax harmonization law, the staff contributory pension arrears as Bauchi state has met all disbursement related indicators under the world Bank assisted state fiscal transparency, accountability and sustainability.
In collaboration with the USAID funded state2state project, Bauchi state has developed a robust IGR expansion strategy for the short, medium and long term to enable the state sustain the momentum.
With the aforementioned and the laudable projects executed across the state by Governor Bala Mohammed one can concludes by saying “it pays to pay your tax”.
John Murai writes from Bauchi state.
