FIRS targets N29.2trn revenue by 2023, as FG caps MDAs operation cost to 60%

Federal Inland Revenue Service (FIRS) has unveiled plans to generate a whopping sum of N29.2 trillion revenue from oil and non-oil sectors over the next three years, owing to the country’s capacity to sustain crude oil production average 2.2 million barrel per day in 2021, 2.3mbpd in 2022 and 2.5mbpd in 2023.

Breakdown of the FIRS revenue projection as presented during the interactive session on the 2021-2023 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) held at the instance of the joint House of Representatives’ Committee on Appropriations, Finance, Aids, Loans & Debt Management and National Planning, chaired by Hon. Abiodun Faleke showed that the sum of N8.4 trillion was projected for 2012; N9.8 trillion for 2022 while the sum of N11 trillion is for 2023.

The FIRS Executive Chairman, Mr Muhammad Mamman Nami said: “Oil profit tax for 2021 is N3.9 trillion, Company Income Tax and other non-oil taxes projected to be N2.3 trillion; total oil and non-oil taxes that will be remitted and if everything is equal is N6.2 trillion.

“Other non-oil taxes for 2021 including Education tax and consolidated account and the NITDA revenues that we collect on their behalf… the VAT account is N3 trillion, Nigeria Customs import VAT that we collect on their behalf is N396 billion which is the total of N1.7 trillion. Total non-oil and other taxes is N4.5 trillion.

“So total projected revenue for the year N8.4 trillion; for 2022 – N9.8 trillion; for 2023 – N11 trillion. This is realizable if the crude oil production is to average 2.2 million barrel for 2021, 2.3 million barrel for 2022 and 2.5 million barrel for 2023.

“This figure is also based on the historical record for the last five years and our ability to generate tax revenue if the impact of COVID-19 which has affected the price and demand of crude oil which has affected the world economy. It is also realizable if the National Assembly continues to give us the usual support, particularly with suggestions and amendment of the Finance Act 2020 which will come with the 2021 budget,” the FIRS Chairman informed the lawmakers.

On his part, Permanent Secretary, Federal Ministry of Mines and Steel Development, Mr Edet Akpan, disclosed that the N6.2 billion revenue is projected for 2021 against N4.9 billion for 2020; N6.9 billion for 2022 and N7.6 billion for the year 2023, respectively.

He expressed optimism that the memo presented by the Minister to Federal Executive Council (FEC) last Wednesday on measures to increase revenue from the solid minerals and metal sectors if approved will boost revenue generation into government’s coffer in 2020 and beyond.

While applauding the gesture, Hon. Faleke opined that such an initiative will boost revenue generation from solid minerals by 20 to 30 per cent.

In his presentation, Comptroller General of Nigeria Customs Service (NCS), Col. Hammed Alli who assured that total sum of N1.6 trillion revenue by 2021 and N1.704 trillion by 2022, was urged by Hon. Faleke on the need for upward review of its revenue target to N2 trillion by blocking all the loopholes adding that with the new businesses and imports the Service will realize the N2 trillion target.

ALSO READ: Ganduje to review road contracts awarded by Kwankwaso

In the same vein, Hon. Faleke who differed with the presentation of Nigerian Communication Commission (NCC) on the N18.6 billion out of N73.4 billion projected revenue for 2021; N21.1 billion out of 81.4 billion for 2022 and N29.2 billion out of N91.3 billion projected revenue for 2023, however, directed the Commission to ensure remittance of total sums of N29.4 billion in 2021, N32.6 billion in 2022 and N36.5 billion by 2023 into government’s coffer, adding that: “We are cutting down on your cost, we are not touching your revenue from 60 per cent.

In its presentation, Nigerian Deposit Insurance Commission (NDIC) revenue projection showed that the sum of N147.569 billion against N165.8 billion computed by the Budget Office of the Federation, N59.615 billion for 2022 and N80.456 billion for 2023.

To this end, the Commission is to remit the sum of N47.346 billion against the sum of N69.5 billion operating surplus for the year 2020, adding that 99% of the Commission’s investment depends on the interest income from NTBs and FGN Bonds.

On his part, Permanent Secretary, Federal Ministry of Mines and Steel Development, Mr Edet Akpan, disclosed that the N6.2 billion revenue is projected for 2021 against N4.9 billion for 2020; N6.9 billion for 2022 and N7.6 billion for the year 2023, respectively.

He expressed optimism that the memo presented by the Minister to Federal Executive Council (FEC) last Wednesday on measures to increase revenue from the solid minerals and metal sectors if approved will boost revenue generation into government’s coffer in 2020 and beyond.

While applauding the gesture, Hon. Faleke opined that such an initiative will boost revenue generation from solid minerals by 20 to 30 per cent.

While speaking on the projected revenue presented by the Bureau of Public Enterprises (BPE) on the sums of N83.57 billion and N436.5 billion and N164.9 billion for 2021, 2022 and 20223 respectively, Director General of Budget Office of the Federation, Mr Ben Akabueze explained that BPE’s projected revenue for “2021 was N205.135 billion so he’s now saying is now N436.5 billion that is N231 billion more.

“I hope that is understood, we are talking here about the Federal Government. So if the number that he’s given for N436 includes the proceeds of the sale of NIPP assets, the States have their shares of that. So you net it and what is due to Federal Government is the N205 billion share of States in NIPP has been netted out. So we just need to be sure.”

While addressing the stakeholders, Hon. Faleke stressed the need for all MDAs to ensure that for every fund realized must be in line with your budget. So you gave to have these releases pass through the Budget Office so that every time we can be clear that we are working together in line with the appropriation.”

 

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

STATE OF ECONOMY: How Nigeria Is Eating Its Future, Spent Over 90% Of Revenue On Debt Servicing
INDICATION that Nigeria’s economy is still in the throes of death has continued to emerge with the current low revenue it is generating from oil sale and increasing demands on its foreign debt obligation especially. The parlous state of the economy is heightened by the revelation that most of the revenue…

FACT CHECK: Somalia President, Deputy DID NOT Fight In Viral VIDEO
CLAIM: Somalia President, Mohamed Abdullahi Farmaajo and his vice exchanged blows to the point of wrestling themselves to the ground.
VERDICT: MISLEADING
FULL STORY: Nigerian media space was abuzz on Saturday, August 15, 2020, with a viral video which claims to show President of Somalia, Mohamed Abdullahi Farmaajo publicly exchanged blows with his vice…

NBS Says 21.76m Nigerians Unemployed In 2020
THE National Bureau of Statistics (NBS) has put the total number of unemployed Nigerians at 21,764,617. The figure is contained in the bureau’s Labor Force Statistics website entitled “Unemployment and Underemployment Report (Q2 2020) released in Abuja. It referred to the report as an Abridged Labour Force Survey under COVID-19 for August 2020. According to NBS, the unemployment rate during the period under review…

Our Fears As 2020 WASSCE Beckons: SS3 Students Speak On Inability To Finish Syllabus, Other Issues
After a long unexpected delay occasioned by the lockdown from the coronavirus pandemic, the 2020 West African Senior School Certificate Examination (WASSCE) will begin in 19,129 accredited centres nationwide on August 17. Some candidates hoping to write the examination spoke with IMOLEAYO OYEDEYI and ADEOLA OTEMADE on their fears and expectations…

FG’s Renewed Tax Drive Will Do More Harm Than Good To Businesses —Muda Yusuf, DG, LCCI
The Director-General, Lagos Chamber of Commerce and Industry (LCCI), Dr Muda Yusuf, speaks with AKIN ADEWAKUN on the state of the nation’s economy, the various efforts of the federal government to breathe life into it, and why the renewed aggressive tax drive it recently embarked upon might be an anathema to the growth of the industrial sector since it targets investors more than the consumers…