*FIRS boss, Fowler fires back at CoS, Kyari, says Nigeria’s GDP declines under Buhari*

By DESERT HERALD
It is becoming clearer that all perhaps is not well between the Presidency, precisely President Muhammadu Buhari’s Chief of Staff, Abba Kyari and the powerful political camp of APC National leader, Bola Ahmed Tinubu. Even though the Federal Government yesterday insisted that Babatunde Fowler, the FIRS boss is not under probe, the camp according to credible source at the disposal of DESERT HERALD are not taking anything for granted especially if the current travails of Miss Winifred Oyo-Ita, the Head of Service of the federation is anything to go by.

It would be recalled that the embattled Oyo-Ita had last two years engaged in verbal exchanges of harsh words and abuses with the powerful CoS, Mr. Abba Kyari before the weekly meeting of the Federal Executive Council, a situation that brought embarrassment to the FG and further exposes the deep animosity between the appointees of the President. Even though a reconciliation was later spearheaded by Vice President Yemi Osibanjo and later President Buhari himself, it is not clear if the powerful Kyari has forgiven HoS, Oyo-Ita.

As the politics of Fowler’s reappointment thickens and with those close to him working to ensure his reappointment in the highly strategic and ‘lucrative’ office, Abba Kyari had last week queried Fowler about the tax collection variations and remittances by the Federal Inland Revenue Service for the period covering 2015 to 2018.

It noted in a query sent to the Chairman, FIRS, Dr Babatunde Fowler, that there were “variances” between budgeted collections and the actual collections made by the agency.

But Fowler in a reply to Mr. Kyari yesterday, a copy of which was exclusively obtained by DESERT HERALD disagreed with the CoS and insisted that under the circumstances he worked during the last four years, the FIRS under him has performed creditably well, giving figures and instances to justify that local collections from none-oil revenue under him is far higher than the years preceding his reign as the FIRS boss. Fowler rightly justified that FIRS don’t have direct powers from oil revenues and that it is the international market, the amount of crude oil that is being exported (which has plummeted since his appointment) and the recession the country suffered that resulted to the significance drop in direct oil revenue which ultimately affected figures of total collection for the period Kyari mentioned.

Specifically, Fowler in the letter reminder Kyari that the FIRS has no control over oil revenues and that the none oil revenues under his watch has recorded increased of over N1 trillion.

Fowler explained that the variance in the budgeted and actual revenue performance from 2016 to 2018 was due to fall in price of crude oil and reduction of crude oil production.

The FIRS chairman noted that within the period, the price of crude oil fell from an average of $113.72, $110.98 and $100.40 per barrel in 2012, 2013 and 2014 to $52.65, $43.80 and $54.08 per barrel in 2015, 2016 and 2017.

He also pointed to a reduction in crude oil production from 2.31mbpd, 2.18mbpd and 2.20mbpd in 2012, 2013 and 2014 to 2.12mbpd, 1.81mbpd and 1.88mbpd in 2015, 2016 and 2017.

“The Nigerian economy also went into recession in the second quarter of 2016 which slowed down general economic activities.

He added, “Tax revenue collection (CIT and VAT) being a function of economic activities was negatively affected but actual collection of CIT and VAT was still higher in 2016 to 2018 than in 2012 to 2014.”

According to him, in 2012, 2013 and 2014, GDP grew by 4.3 per cent, 5.4 per cent and 6.3 per cent while under President Buhari in 2015, 2016 and 2017, there was a decline in growth to 2.7 per cent, -1.6 per cent and 1.9 per cent respectively.

Noting that tax revenue grew as the economy recovered in the second quarter of 2017, Fowler said strategies and initiatives adopted in the collection of VAT from 2015 to 2017 led to approximately 40 per cent increase over 2012 to 2014 collections.

“In 2014, the VAT collected was N802bn compared to N1.1tn in 2018,” he said.

He listed some initiatives undertaken by the FIRS, such as ICT innovations, continuous taxpayer education and enlightenment as reasons for the increment.

He added that when he assumed the leadership of the FIRS in August 2015, the target for the two major non-oil taxes – VAT and CIT – was increased by 52 per cent and 42 per cent, respectively.

He said the FIRS had grown the non-oil tax collection by over N1.31tn (21 per cent) when the total non-oil tax collection for 2016 – 2018 is compared to 2012 – 2014.

Fowler further explained that the management of the FIRS had no control over oil revenue collection figures, which according to him, were subject to external forces.

Pundits averred that with Fowler reply and it’s deliberate publicity, the Tinubu camp which consists of the Vice President, Yemi Osibanjo has given a good account of themselves and have therefore killed any attempt that will justify that under the circumstances the FIRS did not perform even though according to credible insiders, Mr. Fowler is arguably one of the richest appointee of the Buhari presidency while unlike northern appointees, Mr. Fowler has given undue favour to people of his region and master(s).