On December 19th, 2018, President Mohammadu Buhari presented the 2019 budget estimates before the joint session of the National Assembly for consideration and approval.

According to him,

"Buhari said the expected income consisted of oil revenue projected at N3.73 trillion, and non-oil revenue estimated at N1.39 trillion.*

“The estimate from non-oil revenue consists of N799.52 billion from company income tax; N229.34 billion from value added tax, and customs duties of N302.5 billion."

Now, I am confused. It appears to me I am completely lost in the midst of an Ocean. Nigerians kindly come to my aid.

FIRS alone declared income of over #5 trillion for 2018.

Also, income from stamp duty alone is estimated at over #2.5 trillion annually.

The two non-oil sources alone has covered over 90% of the 2019 budget.

Again, from these two non-oil sources alone, we have a total of #7.5 trillion. But our president is estimating only #1.39 trillion. Why the huge gap?

Probably, as I am not an economist, there is something I am missing.

Guide me for I am lost.

Solomon-Dickson Uzoma Okafor, submits from Owerri.

Gazelle22:
On December 19th, 2018, President Mohammadu Buhari presented the 2019 budget estimates before the joint session of the National Assembly for consideration and approval.

According to him,

"Buhari said the expected income consisted of oil revenue projected at N3.73 trillion, and non-oil revenue estimated at N1.39 trillion.*

“The estimate from non-oil revenue consists of N799.52 billion from company income tax; N229.34 billion from value added tax, and customs duties of N302.5 billion."

Now, I am confused. It appears to me I am completely lost in the midst of an Ocean. Nigerians kindly come to my aid.

FIRS alone declared income of over #5 trillion for 2018.

Also, income from stamp duty alone is estimated at over #2.5 trillion annually.

The two non-oil sources alone has covered over 90% of the 2019 budget.

Again, from these two non-oil sources alone, we have a total of #7.5 trillion. But our president is estimating only #1.39 trillion. Why the huge gap?

Probably, as I am not an economist, there is something I am missing.

Guide me for I am lost.

Solomon-Dickson Uzoma Okafor, submits from Owerri.

You need proper understanding of budgeting.

Whatever JAMB and FIRS and other government agencies bring in are already included in the projection for non-oil revenue. And the total remittances from those agencies are eventually shared by all tiers of government.

PassingShot:

You need proper understanding of budgeting.

Whatever JAMB and FIRS and other government agencies bring in are already included in the projection for non-oil revenue. And the total remittances from those agencies are eventually shared by all tiers of government.

Please you need to explain further as I do not yet understand. This is a crucial submission.

@ op, have you ever considered how much FG spends monthly in paying salary? Not to talk of funding our institutions

olatemitayo:


Please you need to explain further as I do not yet understand. This is a crucial submission.

The FG budget is only federal govt's projections of what to achieve.

The income expectations are only the FG's share of the total earnings of Nigeria. So, income from FIRS, JAMB, Customs etc will be shared by Local, State and FG. For example, the FG expects to earn customs duties of N302.5 billion from the total income from Customs in 2019.

PassingShot:

The FG budget is only federal govt's projections of what to achieve.

The income expectations are only the FG's share of the total earnings of Nigeria. So, income from FIRS, JAMB, Customs etc will be shared by Local, State and FG. For example, the FG expects to earn customs duties of N302.5 billion from the total income from Customs in 2019.

I still do not understand. To be specific for instance, what income do Federal Government expect from FIRS in 2019?

PassingShot:

You need proper understanding of budgeting.

Whatever JAMB and FIRS and other government agencies bring in are already included in the projection for non-oil revenue. And the total remittances from those agencies are eventually shared by all tiers of government.

he is asking where FIRS 5 trillion non oil revenue is in the budget? Hasn't FIRS been celebrating income of 5 trillion all over the medial...we expected to see a reflection of that in the Budget so where is it ?

PassingShot:

The FG budget is only federal govt's projections of what to achieve.

The income expectations are only the FG's share of the total earnings of Nigeria. So, income from FIRS, JAMB, Customs etc will be shared by Local, State and FG. For example, the FG expects to earn customs duties of N302.5 billion from the total income from Customs in 2019.

You are a liar !!! Income estimates are all based on the govt gross income before any dirty sharing at any level

FarahAideed:



he is asking where FIRS 5 trillion non oil revenue is in the budget? Hasn't FIRS been celebrating income of 5 trillion all over the medial...we expected to see a reflection of that in the Budget so where is it ?

olodo.

Budget is a projection of coming year - 2019 in this case. Not a reflection of what was earned in this year or past years. Make una go school una no gree.

Gazelle22:


I still do not understand. To be specific for instance, what income do Federal Government expect from FIRS in 2019?

That will be in the specific detail but it's clear the FG expects to earn N302.5bn from Customs.

PassingShot:

olodo.

Budget is a projection of coming year - 2019 in this case. Not a reflection of what was earned in this year or past years. Make una go school una no gree.

You are the olodo here!!!!

budget projections involves retained earning from the previous year if you dont know and data from the previous year is is used to guide projections if you dont know...Are you saying the govt is already projecting reduced FIRS revenue?

Not just the budget
Nigeria was built on lies

FarahAideed:


You are the olodo here!!!!

budget projections involves retained earning from the previous year if you dont know and data from the previous year is is used to guide projections if you dont know...Are you saying the govt is already projecting reduced FIRS revenue?

No mind the Zombie!

They are all criminals

PassingShot:

That will be in the specific detail but it's clear the FG expects to earn N302.5bn from Customs.

My concern is very simple: the FG expects total #1.39 trillion revenue from the non-oil sector including FIRS, customs, CBN, NPS and other agencies of the government.

But FIRS alone generated over #5 trillion this year. Is the Federal Government expecting any less next year? If they expect any different, can it be as high as close to #4 trillion? How about about income from Stamp Duties? Why only #1.39 trillion from all non-oil agencies?

Ignorance of economy and governance is the problems of the author, governance is not runs as a private enterprise or company, there are lots of Government considerations that will go along with the preparation of budget go and learn more about budgeting , especially in government.

deyahaya:
Ignorance of economy and governance is the problems of the author,...go and learn more about budgeting , especially in government.

Reason why I present my confusion before the Nigerian public to assist me.

I have studied the fundamentals of budgeting, I have also searched between lines to understand the reason behind this prevailing seeming disparity between expected earnings and actual earnings.

Can you guide us in simple terms?

Each year, actual earnings far exceeds the expected earnings. And annual government spendings are based on budgets.

If need be that expenses should exceed previous budget estimates, supplementary budgets are introduced. But supplementary budgets are still far apart from the actual earnings.

Where are the excess funds?

Gazelle22:


My concern is very simple: the FG expects total #1.39 trillion revenue from the non-oil sector including FIRS, customs, CBN, NPS and other agencies of the government.

But FIRS alone generated over #5 trillion this year. Is the Federal Government expecting any less next year? If they expect any different, can it be as high as close to #4 trillion? How about about income from Stamp Duties? Why only #1.39 trillion from all non-oil agencies?

The N5 trillion generated by FIRS this year is to be shared by all tiers of government.

[s]

FarahAideed:


You are the olodo here!!!!

budget projections involves retained earning from the previous year if you dont know and data from the previous year is is used to guide projections if you dont know...Are you saying the govt is already projecting reduced FIRS revenue?

[/s]
You're obviously so ignorant.

@op All those buhari institution and agencies have spining imaginary figures just to decive yoruba people to think that bubu is working. Where they earn 2 naira they will claim 2 million so that zombies will be happy

PassingShot:

The N5 trillion generated by FIRS this year is to be shared by all tiers of government.

Are you sure you are demonstrating clear knowledge of budgeting and how government is run as claimed?

It is illegal to distribute or appropriate funds not captured in any budget. Except you are implying the funds will be distributed illegally as always since nothing is impossible in Nigeria. After all, our president has declared that national(selfish) interest supersedes rule of law.

The #5 trillion generated by FIRS is neither captured in 2018 budget, nor in the proposed 2019 budget. There is also no special account to the best of my knowledge where these excesses are saved.

The ECA account we hope on is being vandalized on daily bases. The Nation Newspapers just reported $1.6 billion was withdrawn from that account in the last 3 weeks thereby leaving the balance on that account with less than $700 million dollars.

What are the funds used for? Were they appropriated? The military spending request was less than the amount said to have been withdrawn, yet army said they have received no kobo.

Somebody help me; I can't understand.

Redoil:
@op All those buhari institution and agencies have spining imaginary figures just to decive yoruba people to think that bubu is working. Where they earn 2 naira they will claim 2 million so that zombies will be happy

Should they do so, they will obviously encounter the wrath of the law should they fail to remit same to the Consolidated Revenue Account. Because as long as the law is working, there will be non to protect them when they are called up for stewardship.

PassingShot:

olodo.

Budget is a projection of coming year - 2019 in this case. Not a reflection of what was earned in this year or past years. Make una go school una no gree.

So why underestimate it so low? It should at least use a 3years moving average. That's a smarter way to do things.

The fraud continues even as Customs says they generated over #1 trillion in 2018.