NNPC, FIRS, Customs, DPR, MM & SD fail targets

Key revenue generating agencies of the Federal Government failed to meet revenue targets set for them in the first quarter of 2016, resulting to revenue shortfall in excess of N916.3 billion. This was revealed in the 2016 revenue performance chart exclusively obtained by New Telegraph.

The revenue generating agencies relied on by the central government to fund the N6.06 trillion 2016 Budget include the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), Department of Petroleum Resources (DPR), Nigerian National Petroleum Corporation (NNPC) and Solid Mineral agencies.

Out of N2.4 trillion collectively approved to be generated by revenue generating agencies for first quarter 2016, the total amount paid into the federation account stood at N1.5 trillion, indicating a shortfall of N916.2 billion. Document sighted by our correspondent showed that all these agencies fell below their revenue targets in the first quarter of 2016.

Their inability to meet their first quarter target (January – March) is of serious concern to members of the Federation Account Allocation Committee (FAAC) as this is said to be impacting negatively on revenue flow to the federation account, a source told our correspondent.

According to the breakdown of what was paid to the federation account, FIRS paid N345.2 billion in the first quarter out of approved budgeted amount of N751.1 billion, representing 45.97 per cent; NCS paid N123.2 billion to federation account, as against budgeted target sum of N216.7 billion, depicting 43.12 per cent; DPR paid N103 billion into federation account as against budgeted sum of N163.7 billion, indicating 62.9 per cent.

Also, NNPC paid in N451.1 billion instead of N645.7 billion, representing 69.85 per cent, while MM&SD paid N478.1 billion instead of N639.7 billion in the first quarter of 2016, depicting 74.74 per cent “The revenue generating agencies should, as a matter of urgency, review their performance based on specific and realistic parameters in relation to their collection.

“The agencies and all stakeholders, including the Budget Office of Federation (BOF), should meet to review the revenue targets set for them, especially the non-oil collecting ones.

They should strive within the resources available to them to exploit all avenues to enhance their collection,” a member of the sub-committee constituted by FAAC was quoted as advising.

However, a source added that both FIRS and NCS faulted the percentage of revenue generation computed for them. The representative of NCS, it was reliably gathered, observed that percentage performance of the agency was supposed to be 52 per cent as against 43.2 per cent computed.

Similarly, FIRS insisted that its portion of Value Added Tax (VAT) generated and paid to federation account was not considered in the measurement of the service performance. Faced with dwindling revenue challenge, the Customs, under the leadership of Col. Hammed Ali (rtd), last March re-imposed ban on rice importation.

The re-introduction of ban on rice across boarders reversed an earlier policy last October, which allowed rice imports through the land borders, once appropriate duty and charges were paid.

At a review session held with Comptrollers of Border Commands and Federal Operation Units, the service noted that the dwindling revenue from rice imports through the land borders did not match the volume of rice landed in ports of neighbouring countries.

The Customs, in a statement by Wale Adeniyi, Public Relations Officer, said: “Rather, reports from border commands indicated an upsurge in the tempo of rice smuggling. Implementation of the restriction order got off to a smooth start, with a high level of compliance in October 2015. “However, revenue started dwindling from January 2016, with importers blaming access to forex as major impediments.

During the five-month period when the importation was allowed, October 2015 to March 17, 2016, a total of 24.992 metric tons of rice valued at N2,335,131,093 were imported through the land borders.

“During the period, total revenue generated amounted to N1,685,112,810, which is considerably lower than the revenue projected to be generated with the removal of import restrictions.

“However, an upsurge in the number of the seizures has been reported across the land borders since January 2016. In the first two months of 2016, a total of 9,238 bags were seized, with Duty Paid Value of N64,666,000 made by the Customs antismuggling patrol teams of federal operations and border commands.”

Similarly, crash in crude oil prices in the last few years has effected a deep cut in revenue flow to the federation account.For over a year, Nigeria is grappling with low oil prices amidst glut in international market, as output rose above demand.

Added to this is a recent spate in bombing of oil facility in Niger Delta by the militant members of Niger Delta Avenger leading to drastic cut in Nigeria’s oil production by almost half. In a related development, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) may recommend FAAC sanctions against Deposit Money Banks (DMBs), which fail to make available their records to hired consultants authorised by the revenue commission to carry out verification and reconciliation with various banks.

“A commissioner from revenue commission had informed that there was a lot of money accruing from bank charges verification and reconciliation with the various commercial banks and that there was the need for FAAC to consider sanctions on banks who refuse to make available their records to the appointed consultants,” a source told New Telegraph in Abuja.

http://newtelegraphonline.com/fg-records-n916bn-revenue-shortfall/

Money dey dis country o

For the 2nd time I miss ftc.

Lemme speak on behalf of the baba go slow.


My administration will fix the revenue fall, remember slow and steady kwo.

What kai money naija no b Small God you must peak v up call shap shap

Custom too thought they said they can still make the target even with the ban of rice importation via land border.

Hmm it is well

Thank God no one will blame it on Corruption

We now have saints as head of parastatals

All these is a result of poor foreign exchange price policy! Investors aren't finding it comfortable again doing business in the nation!
#Too bad

Money is beign generated like this and we are still borrowing..............





Or the APC Government is just LIE Mohammeding to its citizen's.....

Now they are telling us the Truth...after so many denials. Propaganda will not stand the test of time. Reality can never be hidden

Some will still come here and say their default setting code "sai baba"

Another name for APC is shortfall

Buhari cannot generate but he can blame those who generated

Buhari ehn!!!!! The Dullard

Upon all the increase in tax..... OK o
Even the post sef dey contradict

crazygod:
Upon all the increase in tax..... OK o

dem don chop am

APC always overpromising even target budget also too high. Try N budget inline with reality

Accountability and transparency.

Let's see what happens in d second quarter... But all in all, Nigeria is currently in economic shambles. That's no news though. We'd better stay at our meagre level and stop fooling ourselves by making expensive budgets that our revenue, at current rate, in d next 10 years cannot offset. Well, thats only if the legislooter will be ready to back off from these their so called constituency projects that are purely and obviously white elephant projects... demonstration of craze...

Due to crises in a REGION THAT PRODUCES 5% OF THE NATION'S WEALTH


Please tell we it's not because of low oil production in Niger Delta.........

sanandreas:
Buhari cannot generate but he can blame those who generated

The reasons why he cannot generate much revenue is obvious, you cannot expect ekiti state to generate as much revenue as Delta state.

But yeah, that we cannot generate is not a reason why those who generated and swallowed all they generated should be exonerated.

who is to be blame?

Everything had been shortfall under pmb.. .

This kinda news is becoming stale

Good governance is not rocket science.

This is where you know this country is fu*cked up,upon the shortfall in revenue generation from these agencies and Oil revenue,the RMFAC will not reduce the allocations to NASS that does not generate any revenue but spends, the Governors will not reduce their own salaries, its the Masses that will bear the brunt. Little capital projects, no salaries for civil servants.

You blocked imports through forex restrictions and expect the people to come gather money give the agencies for job well done abi? #FunnyPeople

bubu is better of as efcc chairman, na go hin hear

no right policy put in place

.,cx;