GEMS3 works with private and public stakeholders at national,
state and LGA levels to build and deliver a systematic framework that
helps make it easier to do business in Nigeria, leading to lasting
improvements in economic opportunities for the poor, especially women.
The GEMS 3 team in COOL FM KANO after an interview.
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Kevin Conroy
Intervention Manager
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Muktar Ado Yakassai Tax expert GEMS 3 |
DFID Nigeria has a "State
Partnership for Accountability, Responsiveness and Capacity" programme,
to improve financial management systems and enhance government use of
public resources at state level. In some states, this programme supports
tax collecting agencies, for example, with systems, procedures and
controls in collecting land and employment taxes.
DFID Nigeria is providing £90 million in support
to the ‘Growth and Employment in States’ (GEMS) programme which includes
work on tax. The programme supports the value chain and business
environment, as well as land reform and investment policy. An estimated
£9 million is expected to be tax related, focused at state level.
This project follows the
Nigerian sub-national government Investment Climate Project (ICP) from
2007 – 2011, which identified taxation as one of the key, feasible areas
of reform. Support provided under the ICP included assistance with the
development of state-level 5-year tax board modernisation plans,
training for 600 tax officials (the first training on tax many of them
had ever been exposed to) and substantial support to the introduction of
unique taxpayer identification numbers (UTIN) which has now reached the
stage of formal testing.
The latest programme (GEMS)
will use an innovative 'market' approach to understand and address tax
as it affects and is affected by market systems and political
incentives, with a special focus on impact on the poor. It will have a
strong focus on sustainability, looking at facilitating (rather than
providing) pilot reforms, which it will seek to have replicated across
the country through demand and demonstration effects.
The project will introduce a range of varied
interventions in different states, including; mapping and documentation
of existing tax processes, business processing re-engineering of tax
processes, tax harmonisation and the removal of multiple and 'nuisance'
taxes, and support to target states' existing, broader, reform plans.
DFID is also funding £11
million for the Enhancing Nigerian Advocacy for a Better Business
Environment (ENABLE) programme. This programme, running until 2013,
is to improve the environment for business advocacy in Nigeria. A small
part of this programme worked to improve public-private dialogue in
Lagos State on the issue of Multiple Taxation.
In 2011, DFID provided £89,000 to the International Monetary Fund to rewrite tax legislation in Nigeria.
HMRC has also provided
assistance to Nigeria - two compliance caseworkers spent time in Nigeria
helping the Federal Inland Revenue Service develop a compliance
strategy, and senior level HMRC management sit on the board of the
Nigerian tax administration in an advisory capacity.
The teams are embedded in each of the focal states, with ambitions to
expand as they enter other states across the country. Support to state
teams is provided from the central office in Abuja that also manages the
Federal level interventions. For further information, contact
info@gems3nigeria.com.