₦airaland Forum

Between January and September 2025, Nigeria's Federal Inland Revenue Service (FIRS) and Customs Service (NCS) delivered an economic thunderbolt, collecting a combined N6.41 TRILLION in Value Added Tax (VAT)!
With this massive injection of funds into the economy, what are the top 3 national projects or sectors the Federal Account Allocation Committee (FAAC) should prioritize for disbursement?
Do these record-breaking figures indicate stronger economic activity, better tax compliance, or primarily the effect of inflation and exchange rate changes?
Share your thoughts on how this massive N6.41trn should be spent!
Federal Inland Revenue Service collects N4.92trn in value added tax (VAT) (Jan-Sep 2025)

Jan: N564.61bn
Feb: N499.77bn
Mar: N492.58bn
Apr: N464.50bn
May: N565.33bn
Jun: N524.87bn
Jul: N528.62bn
Aug: N575.85bn
Sep: N698.93bn

Total: N4.92trn

Sensitivity:
We would like to know how the money is being spent by the government.

nikky5:
No doubt, Tinubu is doing a great job.

However, Buhari doesn’t have the kind of money I can steal neither does he have the money I can collect. He doesn’t even have the money for Lagos votes. So, whatever I promise, it’s for real and is coming from my pocket. It’s not until I go to Alausa before I get money to give you.”

Addressing APC supporters on the need to deliver votes, Tinubu said handsome cash rewards await those who can deliver votes for the party.

He said he would not make mistakes of the past where people would collect money in advance and not deliver on election day.

Tinubu added, “Those of you that say you come to Bourdillon for mobilisation, it is mobilisation that we are doing here or don’t you understand? Definitely, if you know people in your neighbourhood, our members, how we used to do.

https://punchng.com/i-said-i-was-richer-than-osun-state-tinubu-admits/

barinedan:
Then why is tinubu borrowing all over the world?

ManirBK:
Aug 28, 2023

The Federal Government says it has no intention to borrow from any local or foreign organisation with its removal of subsidy on petrol and exchange rate harmonisation.

The Minister of Finance and Coordinating Minister for the Economy, Chief Wale Edun, revealed this at the end of the inaugural Federal Executive Council meeting on Monday in Abuja.

He said that the benefit of the subsidy removal would be ploughed back into various sectors aimed at boosting government revenue and improving the business environment for local and foreign investment.

Edun said that with the increased revenue from subsidy removal, various palliatives have been made available to cushion its effect on a short, medium and long-term basis.

He reiterated the President Bola Tinubu-led administration’s desire to bring back the economy from the wood it has found itself over time.

https://www.vanguardngr.com/2023/08/fg-ends-borrowing-finance-minister/amp/

FarahAideed:
Under Tinubu govt make sure you convert any trillion dry tell you to dollars and see how much you are being misled ...if you check this is one of the worst performance if the FIRs is the last 15 years

anonimi:
World Bank offers Nigeria forex rate advice, as Tinubu eyes N200/Dollar rate

April 23, 2023

The President-elect said he would work with the Central Bank of Nigeria (CBN) to *bring down the exchange rate to N200 in his first term.*

“My administration will collaborate with the Central Bank to harmonize the fiscal and monetary policy to achieve immediate stabilization of the value of the naira against the US dollars and other currencies and in the short term, strengthen the naira by boosting the supply of foreign currency and moderating demand.

“The short-term goal is to achieve a naira/dollar rate of 300 naira/US$ and gradually achieve a less than 200 naira rate over the next four years, Tinubu stated.

https://www.ripplesnigeria.com/world-bank-offers-nigeria-forex-rate-advice-as-tinubu-eyes-n200-dollar-rate/?amp

ijustdey:
Nigeria will pay an interest of 11.85 percent per annum on the $3.3 billion “pre-export finance facility” (PxF) facilitated by the Nigerian National Petroleum Company (NNPC) Ltd and arranged by Afrexim Bank, TheCable can report.

Until now, the fine details of the transaction, which has a five-year tenor, had been withheld by all parties involved.

A similar cocoa-backed $800 million facility arranged for Ghana by its cocoa marketing board attracts an interest of 8 percent per annum.

Bilateral lenders, such as the International Monetary Fund (IMF), would typically charge 1-3 percent with a longer tenor.

In the details seen by TheCable, Nigeria pledged a total of 164.25 million barrels of crude oil — at 90,000 barrels per day — starting from 2024 to repay the loan through Project Gazelle Funding Ltd, an “orphan” special purpose vehicle (SPV) incorporated in Bahamas for the PxF.

Effectively, the NNPC has pledged 38.58 percent of five years’ worth of tax and royalty oil to secure the loan.

Nigeria pledges over $12 billion worth of oil
At the beginning of 2024, a barrel of Nigerian oil was sold at the international market at $77.93 per barrel, according to the Central Bank of Nigeria (CBN) data.

At $77.93 per barrel, the 164.25 million barrels of oil pledged by Nigeria equals $12.8 billion — about three times more than the facility taken.

Pre-2014, the national oil company used to remit an average of $3 billion from oil sales every month.

Officially, Project Gazelle Funding Ltd (PGFL) is the borrower while the NNPC is the “sponsor” and will pay with oil to the SPV to liquidate the loan.

To make the repayment, the NNPC will forward-sell 90,000 barrels per day of Nigeria’s share of offshore crude oil under the production sharing contract (PSCs) with the oil companies.

Under PSCs, the companies usually pay royalties and taxes by giving the oil equivalent to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Inland Revenue Service (FIRS) respectively.

The NNPC in turn exports the oil on behalf of NUPRC and FIRS and remits the proceeds to the agencies.

This is part of the revenues paid into the federation account and shared by the three tiers of government.

But under the PxF, the revenue from 90,000 barrels per day will be used to service the loan in the next five years.

The loan arrangers will get a commission of $66 million or 2% of the facility, TheCable further learnt.

Nigeria will pay 2 percent penalty per annum in the event of a default.


‘DOLLAR LIQUIDITY TO STABILISE THE NAIRA’

The national oil company announced in August 2023 that the PxF was to support the federal government “in its ongoing fiscal and monetary policy reforms aimed at stabilizing the exchange rate market”, describing it as “a relief for the naira”.

It called the facility “crude oil repayment” with an upfront cash loan “against proceeds from a limited amount of future crude oil production”.

At the time, the dollar exchanged for an average of N775 in the official market and N885 on the streets.

The rates have now moved to N1,035/$ (official) and N1,230/$ (parallel).

Nigeria’s outstanding forex liabilities are currently thought to be over $7 billion.

In an explainer after announcing the PxF last year, the NNPC said its exposure is very limited, “covering just a fraction” of their entitlements and that “there are no sovereign guarantees tied to it”.

It said it “will also equip the Federal Government with the necessary dollar liquidity to stabilize the Naira, with limited risk”.

A strengthened naira as a result of the initiative, it said, “will lead to a reduction in fuel costs. This means that if the Naira appreciates in value, the cost of fuel will drop and further increases will be halted”.

It also ruled out subsidies, maintaining that a stronger naira “will result in lower prices from the current level, making subsidies unnecessary. The deregulation policy remains unchanged”.

Critics questioned NNPC’s involvement in getting loans to boost forex reserves when it should be concentrating its efforts on bringing in more oil revenues.

There were also questions over the decision to pledge the tax and royalty oil belonging to the entire federation to secure the loan.

Analysts also queried why the details of the deal were never made public.

https://www.thecable.ng/exclusive-nigeria-to-pay-11-85-interest-on-3-3bn-afriexim-nnpc-loan-pledges-164m-barrels-as-security/amp

Alphafarms:
Yet borrowing continues. Is alright

Rebuke:
That's very good but my question is, what is the direct or indirect impact of this income on the life of an average Nigerian?

Prices of daily commodities are still high, people are still suffering....

More disturbing is the fact that yhur president is still borrowing even with these figures!

Rebuke:
That's very good but my question is, what is the direct or indirect impact of this income on the life of an average Nigerian?

Prices of daily commodities are still high, people are still suffering....

More disturbing is the fact that yhur president is still borrowing even with these figures!

nikky5:
No doubt, Tinubu is doing a great job.

FarahAideed:
Nothing good about it's , it's an 80 percent loss from what we used to earn 10 years ago

FarahAideed:
No he is not , in 2014 Jonathan generated 28 billion dollars for the same period, Tinubu is generating 5 billion dollars ...that a 23 billion dollars reduction..it's a horrible result

nairalanda1:
Over ten years ago, we were in the midst of high revenues from the oil boom of that era. Between 2010 and April 2014 , oil prices were as high as 100-130 dollars per barrel. That's why earnings were high. Also thanks to debt forgiveness in 2007 and oil being as high as 145 per barrel in 2008, there was money in reserve to spend.

Since April 2014, oil has been too low for us to make a living, so borrowing happens. Prices have been below 80 dollars since 2015 January. Meanwhile because of our growing population and import based economy, forex needs keep on rising too. The brief oil price rise in 2021/2 yielded revenue which went to pay off debts.

Any economic growth we have since independence comes when the prices of the resources we sell are too high. When they fall😓, palaver don start

And even then most people are poor. Only a tiny minority. Benefits from boom prices

barinedan:
Then why is tinubu borrowing all over the world?

Rebuke:
That's very good but my question is, what is the direct or indirect impact of this income on the life of an average Nigerian?

Prices of daily commodities are still high, people are still suffering....

More disturbing is the fact that yhur president is still borrowing even with these figures!