 A welcome back from that report now presidential aide Zak Adid Deji says the current administration is fully prepared to address the country's revenue problem through fiscal discipline and harmonization of revenue channels. Adid Deji revealed that the government would not collapse revenue-generating bodies like the Nigerian National Petroleum Company Ltd, the Federal Inland Revenue Service, FRS, the Nigerian Maritime Administration and Safety Agency, NIMASA, and the Nigerian Custom Service in a bid to achieve its objective. Now international finance and economic analyst Muqtah Mohamed joins me now on this discuss. Yeah, thanks for joining me, Muqtah. Good morning to you. I'm doing okay. Well, I trust you're well too. Very well. About this conversation of harmonization of revenue-generating agencies has been on for a while. Even back when Kemi Ade Oshun was finance minister, first off, is it the best way to go really? Well, aye. I don't think so because you are trying to look at the revenue-generation agency. You look at Custom, you look at NIMASA, you look at FRS. All these agencies have different rules constitutionally to play in the economy. So there's been a revenue generation agency and most of them, their constitutional rule is different from the other in terms of remittance to the federation account. So we need to look at that. Remember that sometimes these agencies have the constitutional rule to play and they have the administrative rule again, which is different from the constitutional rule. The administrative rule is easy to be tempered with which may be that's what they're trying to do. They're trying to see how they feel or will be able to monitor the revenue and then have it put in one account, which is the federation account, from one source rather than Custom remitting, NIMASA remitting, FRS remitting, they're trying to see how they can get it into one post remitting as they go into the federation account for easy accessibility that can work both to now unbuggle those ministers and make them one. I mean, Custom now is the revenue generation agency with the same with FRS or the same with NIMASA that will be an eucalyptus tax that will have to go through the constitutional amendment. You mustn't forget that Custom is not just all about revenue, it also have to defend the borders of Nigeria also in terms of people that are even coming in. So there's a lot of it, it's not just about the revenue also, there is the security side of it. Inclusive of NIMASA too, NIMASA is more or less like Nigerians, even if you say they walk in Hanahan with the Navy. So it's not easy for you to now say, okay, they will now become one with FRS. FRS is strictly a revenue generation agency. So they all have different functions even if those two generate revenue. They have a larger function that have to do with the security of Nigeria. So if I got you correctly now, looking at all of that, because a school of thought would say that NIMASA is a regulatory agency in the maritime sector, not necessarily a revenue collection agency. Some people have said that in the argument. But so wouldn't it be better off in my head, I'm thinking, if the government were to separate these agencies per se as per having NIMASA maybe just focus on maybe regulating the maritime issue. Why maybe a particular ministry or maybe FRS would focus on collecting all that they should collect from the shipping industry per se, I don't know if that works. But that work depends on what the government is trying to do. So that might work. But like I said, that will work administratively. It might not work constitutionally. Now administratively in the point that NIMASA was not introduced on its own, and I'm sure part of the why it was established was also for to manage shipping lines and also to introduce it to generate revenue. Now if you're going to take that off them, I mean they may have to be going top in hand to the federal government for budgetary allocation. But some of these agencies don't go to the federal government for budgetary allocation. From what they end, they deduct from source, pay their salary, and send the revenue into the federal account. So if you want to do that, then you need to go like I said, constitutionally, you have to go in there and see how you can do that. But in terms of driving administrative prudency, what the special advisor said, that could work because it's going to be an administrative framework. And this is what we want, we want FIRS to be collecting revenue, but what is due you must be given to you. Remember that in this revenue generation, there's a percentage of revenue that goes directly to NIMASA. And if you are saying that you want to put all of them together, then that means you have to not forget that NNPC also generate revenue for Nigeria, and also the former department of petroleum resources also generate revenue for Nigeria by sale of oil and oil. So yeah, you have to also want to do those ones as one also. So it's not something I think is workable as it stands, but administratively, then I come out with policy on how to manage the finances of those places. So verbally, I guess that the Ministry of Finance or the minister, whoever the person would be, has a his or her work cut out for him. But then again, the presidential aide, Zaki Adideji, says the government will double the country's total annual revenue, which is currently below 15 trillion Naira by deepening the nation's revenue collection system and not by adding extra taxes. How do you think they can probably achieve this? Well, I don't know how it wants to deepen. The only way you can deepen the revenue collection agency for me is by widening the tax bracket, not by taxing the already tax. And when I talk widening the tax bracket, it's trying to get the informal sector to pay taxes and then for you to do that, then you also look, you need to look at multi taxation that I mean coming from the state government or from local government or from competitive society within this informal sector. So for me, I think if that happened, that works. It's a good policy to say, oh, we're not going to tax the already tax. That means they are going to go after those that are not taxed. And if you look at it, 90 percent, about 95 percent to 99 percent of revenue that the government generate by taxes comes from the informal sector. The informal sector is one sector that have not been actually clearly. So when they say they are deepening it and they are going to create a framework to attract the informal sector to begin to pay taxes, then that would be a good one. I cannot tell you that there might even triple that number if you are able to do that because the informal sector is the largest employer of labor in Nigeria. OK, so but the informal sector, right? And I will look at it. It is a bit cumbersome to try to get them into the tax net. And even those that are being taxed are complaining of multiplicity of taxes from different agencies of government. How do we get more people into the tax net and still avoid the issue of taxing them more than just once? You see, when it comes to multiple taxing, we need to know that some of these things we call multiple taxing are what illegality, whether perpetrated by the state government or by their revenue directing agency, if the local government or the state government, or some societies that have been created by the political class to be to stand as a means of reward system for them supporting them during the electoral campaign or before they get to office. So when you look at that, then I mean, you you begin to remove those those those obstacles, then definitely you get more people paying taxes. Then again, for you to attract people to pay taxes, you need to come up with what is the benefit. The one that you've collected from the formal sector, let's see the benefits. Is it the challenge with Nigeria? Nigeria doesn't even trust the government to manage the resources. The resources. So that is the major challenge. So government need to to end the trust of Nigeria's. And then if you do that, you have a lot of people on their own willingly paying taxes. And again, it's not in the place where you want to collect taxes from individuals or from companies that you go with the with the military type of issue, you take to them, you say, this amount they must pay. You don't go into their books to look at whether I was that was that what they generate or not. And then what are your impact in them generating? Have you provided security for them? Did you give them good road network? So those are part of the things that if government is able to do Nigeria would naturally not stop on people who can pay their taxes. So they need to come out of the framework. And when you're talking about capturing the informal sector, you must come out with a uniform. You need to develop it because if you say you want the market to pay the same thing like the one that I mean to pay different from the Baba or you want the market to pay different from the woman that is selling on the street, it will be difficult. So you need to come out with a uniform scheme for all of them and make them see the benefit of what they want to do and also beginning to see the benefits on their business. That will be the game changer. Let's look at some other aspect the government can actually explore in driving revenue generation. When the Tinnabar administration came on stream less than two months ago, it started with policies such as the fuel subsidy removal, then of course the harmonisation of the exchange rate and all of that. But one would actually think that if there was a full cost in the reduction in the reduction of a cost of governance with the maybe reducing the paraphernalia of offices at the civil service or the federal government level that the federal government can actually be saving some sort of cost and can actually use such money to drive on some other aspect. I can't agree with you, but you need a political will to do that. I mean, we have a lot of political appointees that are necessary. That is one. We also have a lot of issues that have to do with the political class trying to satisfy their constituency. And that also increase the overhead cost of governance. So what government need to need is to look at the overhead costs, look at the kind of constituency the government have when I mean that is that you don't have a government that is moving up to ten or five tasks on its entourage. And then the taxpayers that money that is flowing those costs. So they need to do like they need to look at it and begin to see how we can reduce the cost of governance. But it's always difficult for the political class to reduce the cover of governance because of the expensive nature of election election. And what I mean, especially in nature is that they have certain set of will that have supported them to become president or to become governor or to become chairman that they need to compensate. And so sometimes they make those appointment based on emotion, not because we need it. So they need to look at that for the first time today, it has been able to bring government have been able to save about four hundred billion. But the Nigerian people are not happy. They are not convinced until they see what is four hundred billion is going to add to the economy and how most job is going to create for the economy. Then we begin to see us appreciating what the session is doing. All right, so so the jumbo pay and the call for, you know, or the clamor by, you know, those who are just recently elected on their pay to be increased should not even be talked about right now, as we speak. It should not be. We should not even supposed to be head. So the Nigerians are replying. For a subsidy, they remove costs of living, and it's called extremely high. And it's going high because exchange rate is very volatile in the import export window. People are struggling to import goods into Nigeria. The challenge of FX is still there. The challenge of cost of doing business is still there. The any capability of the online Nigerian is extremely. And yet you want to see you as a political appointee want to end more. I don't think there's a city to apply. And I don't know if you are doing that. The National Revenue Revenue Commission will also have to look at it and many percentage. How long does it take? When are you supposed to increase the salary? All these are stated in the National Revenue Commission. So they need to look at that. And also they need to look at the ordinary Nigeria to what we say is their own salary being improved upon. Because we are talking about the situation that their increment will be up to in the millions. And you're getting all the Nigerians that cannot even have increase in the thousands. So it doesn't make sense for even to contemplate increase to whichever channel you are using, whether a revenue commission or you are trying to invoke it yourself by one rule or the other, it's not right. This moment. All right, so as we round off now, talking about all of this revenue generation drive now, what would you really advise in just one sentence as regards ministries, department and agencies, even for ministers, we have ministers, we have a minister of state for the same ministry. And of course, we now have even some myriads of our agencies that ordinarily should not even be there in the first instance. Go back to the non-Saharan reports. It has clearly addressed the issue. Go back there and see those issues. Up to this moment, President Buarisi will implement the non-Saharan report. We did not see it before President Thimble will look at that report. It's a comprehensive report. It's a report that said which agencies should be matched for efficiency and for the reduction in cost of governance. I think they should look into that as soon as possible. All right, thank you so much. We have been speaking with Mokta Mohammed International Finance and Economic Analyst, who do appreciate your time on the show. Thank you Justin, do you have a pleasant week. Now you too, my brother. So as we go on the show, the event experience Africa, Texas has hosted major stakeholders, event professionals, creatives and business heads in the event industry since 2019 at a grand conference that sets the pace for an eclectic year as professionals in the industry. Now, since the global downturn, Texas resumed activities was covered in 2023 by hosting delegates from across Africa to an excellently planned and well-executed conference themed reset. Now this year's theme was geared at encouraging and guiding the various stakeholders on growth pathways, profitability and accessing new markets in the industry during recession. I'll leave you with details of the report. I'll see you again next time. My name is Justin Acadone. Many thanks for watching. This one is nice, okay, you look nice in this one. And so that was something that event managers were coming to do. The event plan and business is highly profitable and can be started with no or relatively low capital. It is, however, pertinent, denotes that it is a network in oriented activity. With the progressive comeback from the pandemic, stakeholders have converged on the event experience of Africa to share and connect with other professionals to better position themselves to heed the ground running in 2023. Led by Nigeria's foremost event planner, Funker Bokhana Obrute, participants were intensively involved in an informative and unusual experience that where engaged on drivers for sustainable business growth, curated sessions, emerging innovations and trends in the industry. They need a change of mindset. And for me, reset is either moving backwards, turning around, moving forward, pulsing and rethinking. You know, you can either do a hard reset where everything changes or you just do, you reset your mind, you reset your business, you reset your life, I would say, melting points where everybody can come together to learn, to relearn, and then to just get education to network. And I saw that there was really nothing for Africa. You know, I go for conferences internationally all over the world. I've spoken, I've attended over the years and I know that it can be very expensive. First of all, getting on the plane, buying your tickets, getting the hotel, paying for the conference and they're very, very expensive. But I just thought, how can we make it nearer for people? People who curate experiences across Africa are the event organizers, event planners, the vendors and people in the value chain. See how powerful it is to actually put all of these people in one room. It's such an amazing thing. So if I'm to describe it, Sexa is unifying Africa and figuring out great ways to make this industry in Africa globally competitive. Right now, the world is actually, you know, the entire touchlights is on Africa right now. Like I said, a lot of times people don't see them. They feel old. It's just, it's just a pig, actually okay, it's just a pig pollock, just a pig style. But truth be told, it's not true. What we do is basically curating a moment, a fashion moment for you. That's what your style is, guys. So as much as it's pretty difficult to convince, sometimes you're resume and what you've done and how you've been able to put your previous, your previous price or your previous groups together, just sort of makes it easier. But a lot of times it's convincing. Sexa 2023 was also targeted at corporate stakeholders, such as brand and corporate communication activation managers, including experiential marketing companies. Right from your clients, right?