Nigeria targets 57 per cent revenue collection boost in 2024

The Nigerian federal government expects to increase income collection by 57% by 2024. The development comes as the Federal Inland Revenue Service, the country’s top tax collection agency, anticipates a 57% increase in revenue to 19.4 trillion nairas ($20.3 billion) in 2024 compared to last year. Accordingly, the report indicated that the government expects N9.96 trillion in tax revenue from oil and N9.45 trillion in non-oil revenue. The agency plans to “carry out internal reallocation from oil to non-oil, given that the budget oil revenue 2024 was increased by 214 per cent compared to 2023 actual, while non-oil was increased by only 3 per cent”. Recalled that in July last year, President Bola Ahmed Tinubu appointed a Presidential Committee on Fiscal Policy and Tax Reforms headed by Taiwo Oyedele to boost revenue collection. This comes as, in the first six months of 2023, the FIRS collected tax revenue of N5.5 trillion, which was a record for a half year and put the agency in a position to surpass its N10.1 trillion collection for 2022.

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NCS targets N6trn revenue in 2024

ABUJA- The Nigeria Customs Service (NCS) says it plans to generate N6 trillion as Internally Generated Revenue (IGR) for the Federal Government in 2024.The NCS Comptroller-General, Mr Adewale Adeniyi, stated this at the 2024 budget defense before the House of Representatives Committee on Appropriation on Monday in Abuja.Adeniyi said that the amount was higher than the N5 trillion originally projected in the budget.“I share the optimism of increasing the revenue to N6 trillion in 2024. So, N6trillion revenue in 2024 is possible,’’ he said.He the service would be able to generate the N6trillion revenue if the federal government reduced concession grants in 2024.‘’The new law will also help us to facilitate a number of issues that will make revenue generation possible,’’ he said.He frown at frequent import waivers by government, saying that it was one of the factors that had impeded revenue generation.‘’If we can get N1.8 trillion in one year that shows the N6 trillion revenue for 2024 is achievable,” he said.He said many of the goods at the ports were yet to be cleared, adding that when the …

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NCS: Kano Area command collects N38.8bn in 10 months

KANO- The Kano Area Command of the Nigeria Customs Service (NCS) said on Thursday it had collected about N38.8 billion as revenue from January to October. Mr Dauda Ibrahim Chana,  Area Comptroller of the command, comprising Kano and Jigawa, disclosed this to the News Agency of Nigeria (NAN) in Kano. Chana said about N5.6 billion was collected in September due to aggressive and strict compliance by the area command. Similarly, the command has seized prohibited items worth about N300 million in the last 20 months. ” We have seized 2,681 bags of foreign parboiled rice; 1,421 spaghetti; 419 bales of second hand clothes; 250 gallons of vegetable oil of 25 liters each; 172 pieces of powdered milk and many others were collected from January to date. ” We have also reached out to residents of Maigatari, Jeke and Babura border posts in Jigawa State, to complement the efforts of our  personnel manning the border posts  with information that could aid in apprehending those involved in the illegal businesses.” He said the command had already put in place various security measures …

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NNPC, IOCs sign agreements to generate $500bn revenue

The Nigerian National Petroleum Company Limited and international oil companies operating in Nigeria, on Friday, signed various agreements that would ensure the production of about 10 billion barrels of crude oil and generate over $500bn revenue to all parties involved. NNPC officials and their counterparts from the IOCs including Shell, Chevron, Texaco, Sinopec, Sapetro, Esso Exploration and Production Nigeria Limited, among others, renewed their agreements in five Oil Mining Leases, OMLs, that included OMLs 128, 130,132, 133, and 138. The agreements renewed by the parties were Production Sharing Contracts as well as Dispute Resolution Agreements, among others, at a signing ceremony held at the Abuja headquarters of NNPC. Speaking at the event, the Group General Manager, National Petroleum Investment Management Services, Bala Wunti, said, “Cumulatively we hope to produce and monetise over 10 billion barrels of oil with these signatures that we had today. “And this by no means will give significant revenue for all the parties. We expect over $500bn of revenue for all the stakeholders.” Earlier, the Group Chief Executive Officer, NNPC, Mele Kyari, had explained that the …

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VAT: Lagos applies to join Rivers as FIRS appeals high court ruling

The Lagos State Government on Friday applied to the Court of Appeal, Abuja Division to be joined as a co-respondent in the appeal filed by the Federal Inland Revenue Service challenging the judgment of the Federal High Court, Port Harcourt. The PUNCH had earlier reported that the Federal High Court in Port Harcourt had declared that the FIRS has no power to collect VAT and Personal Income Tax in Rivers State. The matter slated for the day’s activity in court on Friday was the application filed by FIRS seeking for stay of execution of the trial court’s judgment. However, the Attorney General of Lagos State, Moyosore Onigbanjo (SAN) informed the court of their application for the Lagos State Government to be joined as a party in the appeal. He argued that the application for joinder should be taken first before FIRS’ application for stay of execution. However, the counsel for the FIRS, Mahmoud Magaji (SAN) argued that their application for stay of execution should take precedence over the application for joinder. Rivers VAT not for Abuja people, I don’t care …

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Nasarawa Assembly Passes Bill To Support Gov. Sule’s Drive For Revenue Generation, Infrastructure Maintenance

By Chris Udochukwu Lafia (Precise Post) – Nasarawa State House of Assembly, has passed into law a bill for a law for the Establishment of the Nasarawa State Infrastructure Maintenance and Haulage Fee and  other matters connected thereto. The Speaker of the House, Rt. Hon. Ibrahim Balarabe Abdullahi announced the passage of the bill into law after the House Leader, Hon. Umar Tanko Tunga moved a motion during the House proceedings in Lafia, Monday. The Speaker said, the bill is aimed at generating revenue for the state where all heavy duty trucks coming into the state are to pay certain amount of  fees or tax which government will use for the maintenance of Infrastructure especially road maintenance. He emphasized that it would also give room for orderliness and traffic control among heavy duty trucks and other road users as it is the practice in developed nations.  ” A bill for a law for the Establishment of Nasarawa State Infrastructure Maintenance and Haulage Fee and other matters connected thereto third reading and passed. ” May I therefore direct the clerk to …

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BudgIT: Nigeria made N3.42tn in 2020, debt servicing gulped N3.34tn

Abuja – An analysis from BudgIT has shown that the Federal Government spent N10.01tn in 2020. The analysis also showed that the Federal Government made N3.42tn and spent N3.34tn on debt servicing in 2020. According to analysed data by BudgIT, the Federal Government funded salaries, overhead, and capital expenditure with loans and the Central Bank of Nigeria’s Support. In 2020, N5.37tn was projected as total revenue by the FG. Actual realised revenue, however, was N3.42tn. Nigeria made N1.41tn from oil as against its projected N1.01tn in 2020, the report said. The Federal Government made N1.26tn from non-oil revenue sources as against the projected N1.62tn for the year. The FG claimed that it made no revenue from stamp duties, domestic recoveries, assets and fines, even though it had a projected N437bn revenue from them, the report said. The FG’s total expenditure was N10.01tn, which represented a 93 per cent performance when compared with the FG’s N10.8tn budget for 2020. The analysis also showed that the Federal Government disbursed only N359bn of N536bn on pensions in 2020. Cost of servicing debt was …

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Innovation: FIRS introduces Online naira tax-filing platform

ABUJA – As part of its efforts at modernising tax administration in the country, the Federal Inland Revenue Service (FIRS), has introduced a new Tax Administration Solution (TaxPro-Max) for ease of tax compliance. A public notice signed by the Executive Chairman, FIRS, Mr Muhammad Nami, disclosed that “TaxPro-Max enables seamless registration, filling, payment of taxes and automatic credit of withholding tax as well as other credits to the Taxpayer’s accounts, among other features. The TaxPro-Max also provides a single-view to Taxpayers for all transactions with the Service”. The TaxPro-Max platform is accessible at www.taxpromax.firs.gov.ng Mr. Nami disclosed that as “from 7th June, 2021, the TaxPro-Max becomes the channel for filing Naira-denominated tax returns” in the country. Consequently, Mr. Nami notifies all Taxpayers as follows: “All Naira-denominated tax returns are to be filed via the TaxPro-Max Solution in order to generate the obligatory Document Identity Number (DIN)”. He added that henceforth, “Taxpayers will not be able to pay without DIN; as such taxpayers wanting to submit their tax returns manually must visit the relevant tax office where FIRS personnel will be …

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Nasarawa state revenue board head office to be given a facelift – Gov Sule

By Chris Udochukwu ABUJA (Precise Post) – Nasarawa State government said it will uplift the standards of the Revenue House, head office of the Nasarawa State Board of Internal Revenue Services, located in Bukan Sidi area of Lafia, the state capital. Nasarawa State governor, Engineer Abdullahi Sule, disclosed this, Monday, shortly after inspecting the facility, which was recently damaged by heavy rainstorm. The governor said he undertook the inspection visit to ascertain the level of repair work to be carried out, in order to turn the revenue house to a befitting status and to also reflect the status of the state. On whether the damage caused by the heavy rains, could affect the work of the board, Engineer Sule was emphatic that the board has several offices across the state, from which it can operate, with the Executive Chairman of the board, Alhaji Ahmed Yakubu Mohammed, also free to operate from Karu Local Government Area. The governor pointed out that work cannot be impeded at the board because only the top floor of the revenue house was heavily affected by …

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Amaechi to Investigative Panel: Probe all contracts NPA awarded under Hadiza Bala Usman

Abuja (Precise Post). Against the backdrop of financial misdeeds allegedly perpetrated by suspended Managing Director of the Nigerian Ports Authority (NPA), Hadiza Bala-Usman, Minister of Transportation, Rotimi Amaechi, inaugurated an investigative panel to probe the books of the agency. The Chairman of the 11-man committee is Auwalu Suleiman, the Director of Maritime Services and it is co-chaired by Mr Ben Omogo, Director, Organisation Design & Development (OHCSF). Amaechi, while inaugurating the panel of enquiry, tasked the members to be honest and thorough in their investigation. The terms and references of the committee include: “Examine and investigate the administrative policies and strategies adopted by the Managing Director of Nigerian Ports Authority and confirm compliance with extant laws and rules from 2016 — date. “Examine and investigate issues leading to the termination of pilotage and other contracts of Nigerian Ports Authority and confirm compliance with the terms of the respective contracts, court rulings and Presidential directives. “Examine and investigate compliance with the communication channel as obtained in the Public Service. “Examine and investigate the procurement of contracts from 2016 to date. Come …

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NPA remitted all surplus funds – Hadiza Bala Usman writes Gambari

By Our Twenty hours after refuting allegations of failing to remit the operating surplus of the Nigerian Ports Authority (NPA) to the consolidated revenue fund (CFR), Hadiza Bala Usman was suspended as the managing director of the NPA. In a letter dated May 5, 2021, a copy of which was obtained by TheCable, Usman told Ibrahim Gambari, chief of staff to the president, that the purported failure of the NPA to remit an outstanding balance of N165.32 billion from 2017 to 2018 was a misrepresentation of facts. She said that contrary to the figures given by the budget office as outstanding operating surplus, the NPA had remitted all that was due to the CFR — as stipulated in the fiscal responsibility act of 2007. However, it was too late by the time her letter came as the cold war between her and Chibuike Amaechi, the minister of transportation who supervises NPA, was already on the cusp of boiling over. Source

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Senate approves N216.646bn for FIRS in 2021

…Service to generate N7.61trn from revenue collection. By Our Reporter Abuja (Precise Post) – The Senate has approved the sum of N216,646,579,231 billion naira as expenditure for the Federal Inland Revenue Service (FIRS) for the 2021 fiscal year.  This was just as the upper chamber gave its approval for the service to review upward, its revenue target from N5.076 trillion proposed for the year 2020 to N7.61 trillion naira in 2021.  The approval came on Wednesday, following the consideration of a report by the Senate Committee on Finance.  Chairman of the Committee, Senator Solomon Olamilekan Adeola (APC, Lagos West), in his presentation, said the Federal Inland Revenue Service proposed a total revenue collection of N7.61 trillion for 2021 as against N5.076 trillion budgeted in 2020, a figure which represents about 49.90 percent increase above the corresponding year’s budget.  According to the lawmaker, out of the proposed total collection of N7.61 trillion, N5.645 trillion is expected from Non-Oil components, while N1.964 trillion is expected from Oil components.  He added that, the cost of collection from 4 percent net of 2 percent …

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Nigerians resort to foreign currencies to store wealth

….Report links currency substitution to Nigeria naira volatility…..Nigerians’ use of dollars exceeds IMF’s 30% threshold. By Emele Onu Abuja – Nigerians have been accumulating foreign currencies to protect their wealth from naira volatility and surging inflation, according to a research paper in a journal published by the Central Bank of Nigeria. “Higher real-exchange rate volatility is associated with an increased level of currency substitution,” central bank economists including Isaiah Ajibola, Sylvanus Udoette, Rabia Muhammad and John Anigwe said in the paper available on the central bank’s website. There is a need to contain “exchange-rate volatility and inflation as a way of curbing the spate of currency substitution in the country,” they said. One measure of currency substitution, the ratio of foreign cash deposits to naira deposits on demand in the banks exceeded the International Monetary Fund’s 30% threshold from 2009 following the global financial crisis, the researchers said. It hit a peak of 98.2% in 2014 before declining to 83% in 2018. A broader measure of foreign currency in banks to naira savings, demand and term deposits, stayed largely within …

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