Editorial
Rivers And Global Financial Ratings
Rivers State Government recently announced an increase in its monthly Internally Generated Revenue (IGR) from N6.2 billion in January to N9.5 billion in February, 2013.
This represents 300 per cent increase in the past six years, and stands as the best in the history of the state since its creation.
From a N250 million recorded 14 years ago, the Amaechi administration transformed the history of the state’s IGR to hit the N5 billion mark by 2011 and N9.5 billion in 2013.
This feat is indeed legendary and has attracted local and international commendations from renowned global analysis and rating agencies, especially when viewed against the background of the state government’s robust financial policies.
For this accomplishment, the globally renowned finance analysis and rating agencies such as Fitch and Standard and Poor’s (S&P) gave the state government a pass mark for its financial management policies.
In December 2011, fitch had upgraded Rivers State from “Stable” to “Positive” on the strength of significant infrastructural development and overhaul of public finance framework.
Similarly, Standard and Poor’s (S&P) had in its 2010 credit analysis report confirmed the State as having a strong liquidity base with no substantial debt burden, and also lauded the government for its strong cash holdings and healthy operating balance. More importantly, S&P supported the state government’s effort towards modernising public sector administration in Information Technology, Transparency and Accountability in governance. The Tide also identifies with the state government’s success story, particularly in divesting itself from the age long financial irresponsibility in governance.
Even more commendable is the government’s courage to subject itself to appraisal by such reputable and internationally recognised organisations.
We recall that upon assumption of office, Rt. Hon Chibuike Amaechi promised to lay a strong economic foundation for positive change in governance. In furtherance of that, he inaugurated a team of economic advisers comprising some of the best brains in the State and indeed the country to turn the state’s economy around. Among other things, the council was charged to monitor the micro and macro indices of economic growth and ensure that new investors were attracted and old investments made profitable.
The Amaechi administration also initiated certain critical bills on fiscal responsibility for economic revolution in the state, and introduced new approach to debt recovery. For instance, the state Board of Internal Revenue (BIR) operations became automated and digitalised. With that breakthrough tax payers could log on to BIR’s website, conduct self-assessment and pay on-line, thereby eliminating any form of human interface in tax collection. Added to this was a twin approach, whereby government encouraged tax officials to embark on intensive revenue drive from house to house which helped to cover the entire nook and cranny of the state.
However, commendable as these approaches may appear, The Tide believes that there are still grey areas that must be addressed as far as state government’s revenue drive is concerned. Proper monitoring, supervision and regular check on familiar human frailties would be necessary to not only sustain the tempo, but also strive towards meeting the N156billion monthly target.
This is because, there are still some individuals in the state who operate businesses without remitting taxes to government. Some of them convert residential houses to business centres, thus, shielding their operations with high fences.
The state Board of Internal Revenue should identify such chronic tax defaulters. This is because it is only when all the loopholes are blocked, that the state Internally Generated Revenue can hit the ultimate target of N15 billion monthly.
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