Senate justifies N215.8bn budget approval for FIRS

The Senate, on Wednesday, approved the sum of N215,811,290,243 billion naira as the budget for one of the federal government revenue generating agencies, the Federal Inland Revenue Service (FIRS) for the 2022 fiscal year.

The approval was sequel to the Red Chamber consideration of the report of the Committee on Finance under the leadership of Senator representing Lagos West, Solomon Olamilekan Adeola.

Presenting his Committee report during plenary, Senator Adeola declared that out of the amount approved, N119,684,218,735 was for Personnel Cost; N60,160,518,057 for Overhead Cost; and N35,966,553,451 for Capital Cost.

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Giving further details, he said 2022 projected Cost of Collection of N215.81 billion was slightly lower than the 2021 approved revenue which stood at N216.65bn.

Adeola disclosed that personnel cost was based on staff strength on the payroll including social benefits such as National Health Insurance Scheme, Pension contribution among others, and anticipated performance bonus for the year.

Justifying the increase in overhead projection, he told his colleagues that it was to stimulate effective operational activities which he noted: “has a direct relationship with overhead budget lines such as electricity tariff, generator fuel cost, legal services due to tax disputes, local travels and transport and critical ones that relate directly to tax collection and administration.”

The lawmaker added that capital cost estimates reported include ongoing and new projects which are to be executed during the 2022 financial year.

“These are a result of expected completion of projects, payment of retention on completed projects and some new projects for effective revenue drive.”

Giving a review of the 2021 Budget Performance of the FIRS, Adeola said, “the Service collected N4.53 trillion as of 31st October, 2021 out of the total projected revenue target of N7.61 trillion which represents 60 per cent achievement.

“The performance based on the target for the period of N6.34 trillion represents 71 per cent achievement.

“The non-oil component of the tax collected stands at N3.5 trillion and represents 63% achievement of total non-oil revenue target of N5.6 trillion.”