The recent statement from the Special Finance Directorate of the Federal Ministry of Finance has unveiled concerning details concerning the mounting debts owed to the Federal Inland Revenue Service (FIRS). The total outstanding amount reaches N5.2 trillion, a portion of which originates from reimbursements by companies failing to adhere to their contractual obligations.
During a sensitization workshop in Enugu, the Permanent Secretary of Special Finance, Okokon Udo, disclosed that over 5,000 debtors were identified within 93 government ministries and agencies nationwide. This revelation underscores the critical need to implement strategies to recover these debts to secure the governmental financial stability.
The introduction of the Lighthouse project, aimed at consolidating economic and financial data from various government entities, has exposed deficiencies in information sharing and tax enforcement. It is disconcerting that defaulting companies and individuals continue to receive funds through government channels such as the Government Integrated Financial Management Information System (GIFMIS) and the Treasury Single Account (TSA) due to transparency lapses.
This issue emphasizes the necessity for a comprehensive reform of the debt recovery system and the combat against tax evasion. The Lighthouse Project emerges as a pivotal initiative to identify flaws in the current financial system and implement effective solutions to retrieve owed amounts to the federal government.
In conclusion, managing public debts and recuperating outstanding debts pose significant challenges in ensuring the state’s financial well-being. The government must swiftly implement efficient measures to address this issue and rebuild taxpayer and economic partner confidence.