Vice Admiral Ibok-Ete Ibas (Rtd), the Sole Administrator of Rivers State, has launched a new tax framework and revenue codes for the state. This initiative is a major step towards enhancing fiscal transparency, accountability, and aligning the state’s financial management with global best practices.
Key Features of the New Framework
The new tax framework is designed to address systemic weaknesses in Rivers State’s revenue architecture and reduce its heavy reliance on federal allocations from the Federation Account Allocation Committee (FAAC).
- Adoption of International Public Sector Accounting Standards (IPSAS): The state has adopted IPSAS, a move aimed at making its financial records more comparable, credible, and globally acceptable. This is expected to boost investor confidence and make it easier for the state to access international funding and grants from organizations like the World Bank and the United Nations.
- New Revenue Codes: The modernised revenue codes are expected to help the Rivers State Internal Revenue Service (RSIRS) capture previously overlooked revenue streams and expand the tax net. This will lead to a significant increase in the state’s Internally Generated Revenue (IGR).
- Transparency and Accountability: According to Ibas, the new system will ensure that every transaction is traceable, every payment verifiable, and every process auditable in real-time. This is meant to plug revenue leakages and encourage public trust.
Benefits of the Reform
The reforms are expected to bring about a fundamental transformation in the state’s economy, offering benefits to both the government and taxpayers:
- For Taxpayers: The new system is designed to provide greater convenience for taxpayers.
- For the Government: The government will benefit from more reliable revenue inflows and a more efficient tax collection system.
- For the Public: The increased revenue will enable the government to better harness resources to provide much-needed infrastructure and services that improve daily life for the people of Rivers State.
Background and Context
Vice Admiral Ibok-Ete Ibas was appointed the Sole Administrator of Rivers State following the declaration of a state of emergency by President Bola Ahmed Tinubu. This fiscal overhaul is a key part of his mandate to restore stability, growth, and development in the state. The reform initiative also aligns with the broader objective of weaning the state’s economy off its dependency on federal allocations and promoting sustainable growth through a robust IGR base.
