Three major revenue
collecting agencies of the
federal government have
shared a total of N142.6
billion between June 2015
and May 2016.
This is the cost of the
revenue collected by the
Nigeria Customs Service
(NCS), the Federal Inland
Revenue Service (FIRS) and
the Department of Petroleum
Resources(DPR).
In an investigation by the
Economic Confidential from its
published monthly Federation
Account Allocations, the
Federal Inland Revenue
Service raked in a total sum
of N85.94 billion between
June 2015 and May 2016,
which is four percent of the
total sum of its collection into
the federation Account.
It is followed by the Nigeria
Custom Service with the sum
of N35.78 billion which was
seven percent of the total
Revenue it collected for the
Federation, while the
Department of Petroleum
Resources got N20.88 billion
which is four percent of its
collected revenue within the
period under review.
The Economic Confidential’s
investigation further reveals
that the total cost of
collection of FIRS in the first
year of Buhari’s
administration which was
N85.94 billion is higher than
the combination of what NCS
and DPR received which
amounted to N56.66 billion.
Most of the highest cost of
collections shared by the
revenue collecting agencies
were made in 2015, while the
lowest disbursements were
made in 2016. For instance,
within the period the highest
cost of collection received by
FIRS was N23bn in July
2015; that of NCS was
N3.5bn in November 2015
and that of DPR was N2.5bn
in July 2015.
Meanwhile the lowest cost of
collections received by FIRS
was N4.2bn in April 2016,
that of NCS was N1.1bn in
May 2016 and DPR was also
N1.1bn in March 2016.
The three federal revenue
collecting agencies are the
beneficiaries of special
allocations from the
Federation Account of the
Cost of Collection as
incentives for their revenue
drive.
The Nigeria Customs Service
(NCS) receives 7% of the
monthly revenue it
generates for the Federation
from import duty, excise
duty, fees, CET on Special
levy, Customs Penalty
Charges and Auction Sales.
The Federal Inland Revenue
Service (FIRS) receives 4%
of the monthly revenue its
generates from Value Added
Tax (VAT), Petroleum Profit
Tax(PPT) on Oil and Gas,
Company Income Tax,
Personal Income Tax and
other taxes and Department
of Petroleum Resources (DPR)
receives 4% of monthly
revenue it generates from
Royalties on crude oil and
gas concessions, rentals,
gas flaring penalties, among
others.
The collecting agencies do
not feature in the Federal
Government budgeting
process as their operations
are funded from the
percentages of the revenues
they collect for the
Federation Account.