Home Sectors BUSINESS & ECONOMY Zamfara abolishes cash revenue collection to curb leakages

Zamfara abolishes cash revenue collection to curb leakages

 KEY POINTS

  • Zamfara governor ends cash-based revenue collection to strengthen transparency.
  • Reform aims to boost digital monitoring, harmonise databases and curb leakages.
  • The state targets ₦38 billion to ₦42 billion in internally generated revenue for 2025.

MAIN STORY

The Zamfara State Governor, Dauda Lawal, has abolished cash-based revenue collection in as part of measures to strengthen digital systems, improve transparency, and reduce revenue leakages.

According to a statement issued on Sunday by the governor’s spokesperson, Sulaiman Idris. The directive was announced during a town hall meeting held in Gusau.

The meeting, themed “Diversifying Revenue Streams Under a New Tax Regime; Exploring Non-Tax Revenue Opportunities in Zamfara,” was convened by the Zamfara Internal Revenue Service to sensitise stakeholders on the Nigeria Tax Reform Acts 2025.

Lawal said the reforms aim to modernize revenue administration by harmonising databases, enabling real-time monitoring, and strengthening coordination across government agencies.

He explained that the recently signed Repealed and Re-enactment of the Consolidated Revenue Law empowers the state’s Internal Revenue Service to assess, collect and account for revenues, while providing a legal framework for efficient tax administration.

THE ISSUES

Revenue leakages, informal collections and weak accountability systems have long undermined public finance management in many Nigerian states. Analysts say transitioning to digital revenue systems is critical to improving transparency, boosting investor confidence and strengthening internally generated revenue.

WHAT’S BEING SAID

Lawal emphasised that revenue generation is a collective responsibility of all Ministries, Departments and Agencies (MDAs), not a single institution.

He warned that leakages, duplications and unofficial collections would no longer be tolerated, directing MDAs to review their laws, tools and procedures to align with the new framework.

The governor noted that while Zamfara had recorded progress in revenue mobilisation, improvements were still needed to meet its 2025 internally generated revenue target of between ₦38 billion and ₦42 billion.

WHAT’S NEXT

The state government plans to fully digitise revenue collection processes, remove overlaps among agencies and strengthen compliance mechanisms to enhance accountability.

Key MDAs and individuals were also recognised during the meeting for outstanding performance in revenue remittances.

BOTTOM LINE

Zamfara’s abolition of cash revenue collection signals a major shift towards digital governance aimed at curbing leakages, strengthening accountability and improving internally generated revenue.

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