Kaduna Targets N150 Billion Monthly Revenue Through Enhanced Tax Compliance

The Kaduna State Government has revealed its potential to generate N150 billion in monthly revenue through improved tax compliance, according to Mr. Mukhtar Ahmed, the state’s Commissioner for Planning and Budget Commission (PBC).

He made this known during a stakeholders’ engagement organised by the Kaduna State Internal Revenue Service (KADIRS) on Wednesday.

Speaking at the event themed “Unlocking Revenue Potential: A Collaborative Strategy for Sustainable Growth through a Centralised Payment Gateway in Kaduna State,” Ahmed emphasised the need for increased automation in tax collection systems, inter-agency collaboration, and comprehensive sensitisation campaigns as critical steps toward achieving the revenue target.

Highlighting the importance of tax compliance, Ahmed noted that Kaduna’s vast potential, reflected in its thriving businesses and real estate, has not been fully harnessed. He stressed that the future may see diminishing revenue allocations from the federal government, making it essential for states to become financially self-reliant.

“There is a possibility that federal allocations may dry up one day. We are approaching a stage where people are becoming more aware of their demands from the government,” he stated, calling for stronger partnerships between citizens and the government. “Government can only fulfil its role when it has the necessary funds, and those funds must come from within the state through taxes,” Ahmed added.

He further noted that a stable Internally Generated Revenue (IGR) base would enable the state to better meet the needs of its citizens. “No budget can function without revenue. A budget without a revenue side is just a dream,” he remarked.

Ahmed disclosed that the ministry had identified 13 revenue-generating agencies in the state, each tasked with a target of generating N1 billion monthly. To ensure these agencies meet their goals, he said, regular meetings are held to address challenges and devise strategies for effective revenue generation.

On tax administration, Ahmed stressed the need to reduce tax waivers and called on residents to engage in more productive ventures, particularly in the area of exports, which would contribute to the state’s economic growth.

The event also saw contributions from key figures in the tax administration space. Mr. Ali Gora, Executive Director of Standards and Compliance at KADIRS, explained that the engagement was aimed at educating stakeholders about the importance of tax compliance and gathering feedback on the service’s operations. He also unveiled the ‘Pay Kaduna Portal,’ a centralised platform designed to enhance access to tax information and streamline payment processes.

Dr. Muhammad Lawal, Executive Director of Corporate Services at KADIRS, commended the portal for consolidating tax payments under one system, making it easier, cheaper, and faster for residents to comply with tax obligations. He urged citizens to avoid tax evasion, warning that non-compliance would negatively impact the state’s revenue.

Kaduna’s government is optimistic that with these strategies in place, the state will be well on its way to achieving its ambitious revenue goals, ensuring sustainable growth and development.