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FIRS to the Rescue as Subsidy Gulps NNPC’s Revenue

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With a major chunk of the Nigerian National Petroleum Company Limited’s (NNPC) monthly revenue now being channeled to the payment of fuel subsidy, the Federation Account Allocation Committee (FAAC) now relies heavily on the revenue from the Federal Inland Revenue Service (FIRS) for its monthly sharing to the three tiers of government.

The 2021 financial records of the FIRS’ contributions to FAAC showed that in the year under review, the federal revenue collecting agency’s contribution was a total of 59.45 per cent, as out of the total of N8.912 trillion to the three tiers of government last year, N5.298 trillion was contributed by the federal revenue collecting agency.

The trend has continued in the first five months of 2022 as the NNPC’s contribution is still weighed down by the fuel subsidy burden.

This emerged just as Nigeria again lost a whopping $650.7 million to crude oil losses resulting from declaration of force majeure, equipment failures and host communities’ disturbances between the April and May production cycle.

The World Bank had estimated that fuel subsidy payment in the country may rise to N5 trillion this year. Last week, President Muhammadu Buhari shut down calls for the removal of petrol subsidy, querying why the West should be demanding that Nigeria ends subsidy payments, while they continue to support their citizens with same to ameliorate the current economic hardship. In May, the NNPC was unable to carry out its statutory obligations to the federation, recording a N704 billion deficit for the year thus far. In its monthly presentation to FAAC for May, the national oil company had disclosed that it deducted another N327.07 billion as shortfall in the month under review. With a projected N1.473 trillion payments to the federation for the entire year and a monthly remittance of N122.767 billion, the implication was that the federal, state and local governments may continue to have cash shortages for a while since the payments constitute a major revenue source. In January, February and March 2022, petrol subsidy gulped 210.38 billion, N219.78 billion, and N245.77 billion, respectively while in April, the country spent N271 billion. These deductions were expected to continue throughout the year.

However, a breakdown of the FIRS monthly contribution to FAAC for 2021 showed that in January, it contributed 65.71 per cent (N388.54billion) to FAAC; in February (60.57%) – N361.26 billion; March (60.01%) – N501.32 billion; April (59.74%) – N403.70 billion; May (59.66%) – N359.77 billion; June (65%) – N664.30 billion and July (52.03%) – N397.95 billion.

Other months included August (55.46%) – N403.85 billion; September (58.8%) – N516.57 billion; October (57.13%) – N333.82 billion; November (58.17%) – N496.19 billion and December (60.43%) – N470.90 billion.

The report also showed that in the past three years, the FIRS had been making steady progress in terms of revenue collections as it garnered N5.262 trillion in 2019; N4.952 trillion in 2020 (obviously due to COVID-19) and N6.405 trillion in 2021. It was glaring that the FIRS has been gradually making progress despite the impact of Covid-19, the instability in the oil and gas sector, insecurity in the country and economic downturn.

Findings also revealed that out of the total expenditure incurred by the FIRS during the year 2021, the payment of staff salaries, allowances and other staff-related costs accounted for over 63.6 per cent.

Other key recurrent activities of the Service took 19.2 per cent of the funds, while capital expenditure accounted for only 4.8 per cent of the total fund utilisation for the period under review.

Interestingly, out of the meagre amount received by the apex revenue agency, 12.47 per cent of the total amount received as cost of collection (CoC) was transferred for servicing the capital project account and for the funding of its 13th-month salary to staff.

The 19.2 per cent which represented other key recurrent activities was spent on fueling and servicing over 272 generators, rent and the rent paid in respect of over 71 rented properties/office accommodation (particularly in Lagos).

The remaining amount was used for capacity building of over 11,000 workers, fueling and maintaining over 1584 operational vehicles, and payment of Service Level Agreements for security, cleaning, and maintenance of properties and critical equipment in its over 367 operational offices nationwide.

Sadly, the agency could only spend 4.8 per cent of its revenue on capital projects. This could be largely attributed to the lack of adequate funding for the critical agency which accounts for well over 60 per cent of the monies distributed to the three tiers of government in the year 2021.

Analysts believed that in view of the above positive contributions, the agency needs more support from the government than it is currently getting. This, according to them was necessary because of the current peculiar revenue challenge the country was facing as well as in view of some of the global and local challenges being faced by the revenue authorities. These included capital projects started some years ago by FIRS are yet to be completed; some of the agency’s construction sites have been abandoned due to delays in honouring payments certificates; inadequate funding has also made it difficult for the FIRS to adequately build capacity and retrain its officers for modern tax administrative practices; as well as lack of ICT infrastructure necessary to identify and track digital transactions.

Specifically, FIRS has lots of capital projects it had started (including its Corporate Headquarters which is rated one of the 10 top capital projects in Africa) and could not complete the project for lack of funds.

The provision of adequate funding would also be necessary because the FIRS would be able to deploy technology and block leakages; generate more revenue to fund the budgetary needs of both local and state governments as well as the federal government at the centre; complete its capital projects (particularly its HQ, prototype offices, training schools etc.) to save it from the current huge rents it pays to landlords for its office accommodations in some major cities; and above all provide more funds for the country as against the current resort to constant borrowing by the government at all levels is unsustainable.

Furthermore, analysts also advised governments at all levels to invest wisely the little that the apex revenue agency currently generates in critical infrastructure, social amenities, safety and security of the citizens.

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Afe Babalola bags 2024 Best Nigerian Patriot Award

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2023: Presidential election may not reflect the will of the people - Afe Babalola

An elderstatesman and legal icon, Chief Afe Babalola, has bagged the 2024 Best Nigerian Patriot Award for his outstanding performance in humanitarian activities, provision of quality education as well as promotion of peace.

The award was given at an induction ceremony and technical workshop for the inauguration and certification of UN Ambassadors for Peace on Thursday in Abuja.

The event with the theme, “Effective Approach to Anger Management and Tolerance as Panacea for Global Peace and Sustainable Development,” was organised by the Association of UN Ambassadors for Peace (ASUNAP).

The award was organised in collaboration with The Mighty One Empowerment Foundation (TEMOEFA) to support the United Nations efforts in promoting global peace and ethnic tolerance.

The News Agency of Nigeria (NAN) reports that no fewer than 10 persons were also inducted and certified as UN Ambassadors for Peace.

A former Minister of Education, Prof. Tunde Adeniran, who received the award on behalf of Babalola, said the association had done considerable research to come up with the nomination.

“It is one thing for individuals to be playing some roles, but it’s another thing for these roles to be recognised and to be appreciated by the society.

“As a scholar and a researcher, I know that when you do a thorough research into what individuals have contributed in this particular area, one would see that it would be difficult to find someone who has contributed more than Are Afe Babalola.

“This is quite evident from his forays into different areas of national life and continental life of Africa,” he said.

Adeniran called on Nigerians to key into the humanitarian gestures carried out by Babalola.

According to him, if more Nigerians embrace peace and conflict resolution, a lot would be achieved for the country and for humanity.

“This is because there is nothing as precious as peace; without peace, you will not have a stable polity.

“Without peace, there will be no development and love among the people.

“You will not be able to advance to the level where you can say you have reached the optimum.

“The ultimate goal of society is to actualise the potential of citizens, and to be able to get the very best for people.

“I will certainly encourage and plead with Nigerians to key into this, to do their very best, starting from the local, family, community and societal level,” he said.

Also speaking, the Global Director of Interfaith for ASUNAP, Emmanuel Emeka, said the event was aimed at recognising Nigerians in order to promote peace in the society.

Emeka said the association had holistically and comprehensively taken the data of Babalola’s performance, his impact in Nigeria and beyond and found him worthy of the award.

He said that voting was conducted across the nooks and crannies of the country, adding that his name came up with the highest number of votes among nominations.

He said the newly inducted ambassadors would be involved in conflict resolution and peacemaking.

In a keynote address, the Guest Speaker, Prof. Casmiar Obialom, charged the ambassadors not to give war a chance.

He noted that the cumulative effect of not implementing a Mrshall Plan of Action to abate the incidence of impunity had been the root cause of conflicts in society.

Among Nigerians inducted into the association were retired Brig.-Gen. Nuhu Milah, retired Commandant Anthony Nwegbo, Prof. Abiodun Ajibade, Maxwell Abubu, Mrs Comfort Arinze and Dr Raphael Gajere.

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Zulum inaugurates 3 health sector boards, orders comprehensive overhaul

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Zulum resettles 424 families displaced by B’Haram in Konduga

Gov. Babagana Zulum of Borno State has inaugurated three boards in the health sector and ordered a comprehensive overhaul of the state’s healthcare system to address pressing challenges.

The boards inaugurated on Thursday at the Council Chamber of the Government House, Maiduguri, include the Borno State Hospital Management Board, the Borno State Primary Healthcare Development Board and the Kashim Ibrahim University Teaching Hospital Management Board.

Speaking during the ceremony, Zulum said that reforms are necessary to strengthen the delivery of healthcare services, particularly at the primary level.

He added that “we are currently witnessing pressure on our secondary health facilities because primary healthcare is weak.

I want you to assess all hospitals individually and identify challenges related to staffing, equipment and medical supplies so that we can address the issues holistically.”

The governor also directed the boards to work toward resolving the problem of inadequate facilities, staffing and essential medical supplies.

Zulum also inaugurated the Borno State Local Government Service Commission Board, which comprises a chairman and four permanent commissioners.

He emphasised that the reforms and inaugurated boards are part of his administration’s commitment to providing accessible and efficient healthcare to the people.

Prof. Ahmed Ahidjo, the Chairman of the Kashim Ibrahim Teaching Hospital Management Board and Alhaji Modu Alhaji Musa, the Chairman, Local Government Service Commission, expressed gratitude for the honour given to them to serve and pledged to justify the confidence reposed in them.

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Commission, journalists partner to revamp water sector in Kaduna

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The Kaduna State Water Services Regulatory Commission (KADWREC) says it is partnering media practitioners towards revamping water services in the state.

Mr Dogara Bashir, the Executive Chairman of KADWREC, disclosed this on Monday at a one-day workshop organised for media practitioners on regulation of ‘Water, Sanitation and Hygiene’ (WASH) activities held in Kaduna.

Bashir said the commission was aware of the importance of the role media practitioners played in the society.

He stated that the workshop was to provide an avenue to liaise with them as important stakeholders on water supply and sanitation services in the state.

Bashir said: “As media practitioners, we believe you are a gateway to the citizens so, the workshop would acquaint you with some of the regulations already in place so that you can in turn transmit it to the public

“The state of water services in Kaduna State is in dire need of attention and the State Water Corporation and KADWREC were established towards addressing the seeming challenges.

“The commission is mandated to ensure better service delivery and regulation of water and sanitation services in the State.

“The idea is that once the regulations are developed, we send them to the State Ministry of Justice to gazette and then we get the state government to endorse and give the go ahead to commence the implementation of the regulations

“We intend to implement them fully come January, 2025 God willing, as we have embarked on advocacy activities having gone to zones 1 and 2 where we talked to traditional rulers, security agencies and the Judiciary.”

He disclosed that a special Court has already been attached to the commission by the Chief Judge of the State for service providers who may likely violate regulations.

The chairman further said that amongst the commission’s objectives include ensuring security, reliability and quality of service in the production and delivery of water to the consumers as well making regulations to control the sinking of boreholes.

Others included; maximising access to water services by promoting and facilitating consumer connections to distribution systems in urban and rural areas.

According to Bashir, they also include ensuring that regulatory decision-making has regards to all the relevant health, safety, environmental and social legislation applying to the water sector.

Bashir further said that the commission collaborate with the relevant state and federal agencies on water policies.

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