WHERE IS THE BALANCE ?

I have seen COMMENTS on Social Media like if FIRS generate money this much, why then borrowing to fund the budget!

That, ‘If Nigerian Government can earn as high as N15 Trillion, then why do they need to borrow to fund a budget of N9 Trillion’?

I decided to title this #WhereIsTheBalance?

I will start by asking a question and then proceed to answer the question.

Q: What are the revenue collection agencies of Nigeria?

A: Nigeria has many Revenue Collection Agencies, but the major ones are: FIRS, NCS, DPR, Others (NPA, NIMASSA, JAMB etc). #WhereIsTheBalance?

FIRS - Collects the following taxes on behalf of the Federal Republic of Nigeria.
- Company Income Tax (CIT)
- Petroleum Profit Tax (PPT)
- VAT
- Personal Income Tax
- WHT
- Education Tax
- Stamp Duties
- Capital Gains Tax
- NITDF Levy

Nigerian Customs Services
- Custom and Excise Duties.

Department of Petroleum Resources (via the NNPC)
- Royalties on Oil Producing fields
- Rent accruing from awarded concession
- Gas flaring penalties.

Some in USD proceeds and some in Naira proceeds.

Others:
- NPA
- NIMASA
- JAMB
- Stolen Asset Recovery's
- Dividend
- etc

Q: Where is the revenue collected by these agencies paid into?

A: They are paid into the Federation Account from where a committee known as FAAC meets monthly to divide it among the Federating units in accordance to the revenue sharing formula.

Q: What is the sharing formula used by FAAC?

A: The sharing formula is
- FG: 52.68%
- States: 26.72%
- Local Govt: 20.60%
- There is an additional 13% derivation paid to oil producing states from oil proceeds based on the derivation principle.

Q: Does it mean that all revenue are shared in accordance to that formula?

A: No. The VAT collected by FIRS and paid into the Federation Account is shared with a different formula.
- FG: 15%
- States: 50%
- LG: 35%

Q: How much did the Federal Republic of Nigeria earn in 2018?

A: I don’t have the full figures, but from public records, we can estimate:
FIRS – N5.3 Trillion
NCS - N1.2 Trillion (Prorate from claim of N800B collected as at Aug)
DPR - N7 Trillion
Others - N500B

Q: What is the estimated FG share of this amount?

A: First, let’s back out VAT. We know that out of VAT of N1 Trillion, the FG collects 15% which is = N150 Billion.

Secondly, we need to back out the 13% derivation from oil proceeds as well as other deductions.

Using the basic rule of the THUMB, from an estimated revenue of N14Trillion, we can estimate that revenue available to the FG can't be higher than N6.5Trillion. Even this is generous just reflecting on 2018 budget performance figures.

Q: And the N9 Trillion Budget?

A: The N9 Trillion budget is the budget of the Federal Government of Nigeria and not the Federal Republic of Nigeria. This means that the FG can only budget on its portion of federally collected revenue & not total collect-able revenue.

Since we estimate that the maximum revenue available to the FG would be N6.5 Trillion and the FG intends to spend N9 Trillion, what this means is that the FG will have to spend more than it earns and borrow the difference.

This simply is what we call budget DEFICIT!

Q: So where is the balance?

A: The balance is with your State Government and Local Government.

Please engage them. Ask them questions.

Challenge them to show you what they're doing with the amount of money they get from FAAC & also from IGR (Internally generated revenue).

I hope with these few points of mine, I've been able to convince and not confuse you about #WhereIsTheBalance?

Copied

Not surprised if you ask me. Know why? Because I just do not give a duck.

chrisxxx:
WHERE IS THE BALANCE ?

I have seen COMMENTS on Social Media like if FIRS generate money this much, why then borrowing to fund the budget!

That, ‘If Nigerian Government can earn as high as N15 Trillion, then why do they need to borrow to fund a budget of N9 Trillion’?

I decided to title this #WhereIsTheBalance?

I will start by asking a question and then proceed to answer the question.

Q: What are the revenue collection agencies of Nigeria?

A: Nigeria has many Revenue Collection Agencies, but the major ones are: FIRS, NCS, DPR, Others (NPA, NIMASSA, JAMB etc). #WhereIsTheBalance?

FIRS - Collects the following taxes on behalf of the Federal Republic of Nigeria.
- Company Income Tax (CIT)
- Petroleum Profit Tax (PPT)
- VAT
- Personal Income Tax
- WHT
- Education Tax
- Stamp Duties
- Capital Gains Tax
- NITDF Levy

Nigerian Customs Services
- Custom and Excise Duties.

Department of Petroleum Resources (via the NNPC)
- Royalties on Oil Producing fields
- Rent accruing from awarded concession
- Gas flaring penalties.

Some in USD proceeds and some in Naira proceeds.

Others:
- NPA
- NIMASA
- JAMB
- Stolen Asset Recovery's
- Dividend
- etc

Q: Where is the revenue collected by these agencies paid into?

A: They are paid into the Federation Account from where a committee known as FAAC meets monthly to divide it among the Federating units in accordance to the revenue sharing formula.

Q: What is the sharing formula used by FAAC?

A: The sharing formula is
- FG: 52.68%
- States: 26.72%
- Local Govt: 20.60%
- There is an additional 13% derivation paid to oil producing states from oil proceeds based on the derivation principle.

Q: Does it mean that all revenue are shared in accordance to that formula?

A: No. The VAT collected by FIRS and paid into the Federation Account is shared with a different formula.
- FG: 15%
- States: 50%
- LG: 35%

Q: How much did the Federal Republic of Nigeria earn in 2018?

A: I don’t have the full figures, but from public records, we can estimate:
FIRS – N5.3 Trillion
NCS - N1.2 Trillion (Prorate from claim of N800B collected as at Aug)
DPR - N7 Trillion
Others - N500B

Q: What is the estimated FG share of this amount?

A: First, let’s back out VAT. We know that out of VAT of N1 Trillion, the FG collects 15% which is = N150 Billion.

Secondly, we need to back out the 13% derivation from oil proceeds as well as other deductions.

Using the basic rule of the THUMB, from an estimated revenue of N14Trillion, we can estimate that revenue available to the FG can't be higher than N6.5Trillion. Even this is generous just reflecting on 2018 budget performance figures.

Q: And the N9 Trillion Budget?

A: The N9 Trillion budget is the budget of the Federal Government of Nigeria and not the Federal Republic of Nigeria. This means that the FG can only budget on its portion of federally collected revenue & not total collect-able revenue.

Since we estimate that the maximum revenue available to the FG would be N6.5 Trillion and the FG intends to spend N9 Trillion, what this means is that the FG will have to spend more than it earns and borrow the difference.

This simply is what we call budget DEFICIT!

Q: So where is the balance?

A: The balance is with your State Government and Local Government.

Please engage them. Ask them questions.

Challenge them to show you what they're doing with the amount of money they get from FAAC & also from IGR (Internally generated revenue).

I hope with these few points of mine, I've been able to convince and not confuse you about #WhereIsTheBalance?

Copied

Stop saying what I don't know ...Nigeria makes less than. 700bn per month on an average

mrvitalis:


Stop saying what I don't know ...Nigeria makes less than. 700bn per month on an average

Actually we make more, what you see on TV(Allocation) is what remains after subsidy and debt as been removed....and as u may know, a huge chunk of our revenue goes into debt servicing.

Tomide007:

Actually we make more, what you see on TV(Allocation) is what remains after subsidy and debt as been removed....and as u may know, a huge chunk of our revenue goes into debt servicing.

Lol ....nah u are wrong thats revenue ...from here we service debt ,pay for subsidy ,

Yes Nigeria is a broke country

Serious capital been mismanaged,I cry for the next generation

We never had a visionary leader in the helm of affairs of this country,it's has poor and mediocre rulers,I shed tears.

chrisxxx:
WHERE IS THE BALANCE ?

I have seen COMMENTS on Social Media like if FIRS generate money this much, why then borrowing to fund the budget!

That, ‘If Nigerian Government can earn as high as N15 Trillion, then why do they need to borrow to fund a budget of N9 Trillion’?

I decided to title this #WhereIsTheBalance?

I will start by asking a question and then proceed to answer the question.

Q: What are the revenue collection agencies of Nigeria?

A: Nigeria has many Revenue Collection Agencies, but the major ones are: FIRS, NCS, DPR, Others (NPA, NIMASSA, JAMB etc). #WhereIsTheBalance?

FIRS - Collects the following taxes on behalf of the Federal Republic of Nigeria.
- Company Income Tax (CIT)
- Petroleum Profit Tax (PPT)
- VAT
- Personal Income Tax
- WHT
- Education Tax
- Stamp Duties
- Capital Gains Tax
- NITDF Levy

Nigerian Customs Services
- Custom and Excise Duties.

Department of Petroleum Resources (via the NNPC)
- Royalties on Oil Producing fields
- Rent accruing from awarded concession
- Gas flaring penalties.

Some in USD proceeds and some in Naira proceeds.

Others:
- NPA
- NIMASA
- JAMB
- Stolen Asset Recovery's
- Dividend
- etc

Q: Where is the revenue collected by these agencies paid into?

A: They are paid into the Federation Account from where a committee known as FAAC meets monthly to divide it among the Federating units in accordance to the revenue sharing formula.

Q: What is the sharing formula used by FAAC?

A: The sharing formula is
- FG: 52.68%
- States: 26.72%
- Local Govt: 20.60%
- There is an additional 13% derivation paid to oil producing states from oil proceeds based on the derivation principle.

Q: Does it mean that all revenue are shared in accordance to that formula?

A: No. The VAT collected by FIRS and paid into the Federation Account is shared with a different formula.
- FG: 15%
- States: 50%
- LG: 35%

Q: How much did the Federal Republic of Nigeria earn in 2018?

A: I don’t have the full figures, but from public records, we can estimate:
FIRS – N5.3 Trillion
NCS - N1.2 Trillion (Prorate from claim of N800B collected as at Aug)
DPR - N7 Trillion
Others - N500B

Q: What is the estimated FG share of this amount?

A: First, let’s back out VAT. We know that out of VAT of N1 Trillion, the FG collects 15% which is = N150 Billion.

Secondly, we need to back out the 13% derivation from oil proceeds as well as other deductions.

Using the basic rule of the THUMB, from an estimated revenue of N14Trillion, we can estimate that revenue available to the FG can't be higher than N6.5Trillion. Even this is generous just reflecting on 2018 budget performance figures.

Q: And the N9 Trillion Budget?

A: The N9 Trillion budget is the budget of the Federal Government of Nigeria and not the Federal Republic of Nigeria. This means that the FG can only budget on its portion of federally collected revenue & not total collect-able revenue.

Since we estimate that the maximum revenue available to the FG would be N6.5 Trillion and the FG intends to spend N9 Trillion, what this means is that the FG will have to spend more than it earns and borrow the difference.

This simply is what we call budget DEFICIT!

Q: So where is the balance?

A: The balance is with your State Government and Local Government.

Please engage them. Ask them questions.

Challenge them to show you what they're doing with the amount of money they get from FAAC & also from IGR (Internally generated revenue).

I hope with these few points of mine, I've been able to convince and not confuse you about #WhereIsTheBalance?

Copied

Excellent writing and analysis, thumbs up to you.

mrvitalis:

Lol ....nah u are wrong thats revenue ...from here we service debt ,pay for subsidy ,

Yes Nigeria is a broke country

Just like your dead docile ass?

sweetonugbu:
Serious capital been mismanaged,I cry for the next generation

Don’t cry for me Nigeria, did your parents weep for you in their era? I guess not, or they would not have gone through the agony to bring you into this world as a Nigerian.

All these calculations just defend Buhari?

Trying so hard to take the blame off FG?

Look no amount of Further Maths will exonerate Buhari from the failure he is.

sapele914:
Don’t cry for me Nigeria, did your parents weep for you in their era? I guess not, or they would not have gone through the agony to bring you into this world as a Nigerian.

they did their best,I will not raise my children in this country if it remains so

sapele914:
Just like your dead docile ass?

Lol I'm broke ? ....lol

Pls, can you get the revenue generated in 2018 by each of the following tax units that gave rise to N5.3tr for FIRS

-1) Company Income Tax (CIT)
-2) Petroleum Profit Tax (PPT)
-3) VAT
-4) Personal Income Tax
-5) WHT
-6) Education Tax
-7) Stamp Duties
- Capital Gains Tax
-9) NITDF Levy


chrisxxx

ConqueredWest:
Pls, can you get the revenue generated in 2018 by each of the following tax units that gave rise to N5.3tr for FIRS

-1) Company Income Tax (CIT)
-2) Petroleum Profit Tax (PPT)
-3) VAT
-4) Personal Income Tax
-5) WHT
-6) Education Tax
-7) Stamp Duties
- Capital Gains Tax
-9) NITDF Levy


chrisxxx

If you know make it known.