NNPC, Others Receive N191.34bn As Revenue Generation Cost
Three revenue generating agencies of the federal government: Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and Nigerian National Petroleum Resources (through the Department of Petroleum Resources) have all received cumulative sum of over N191.34 billion as cost of revenue collection in the last 14-months.
The FIRS got N100.642 billion out of the whole money in 2017 and the first two months of 2018 as 4 per cent cost of collection of the various taxes including Value Added Tax, Petroleum Profit Tax, Company Income Tax and others. While Nigeria Customs and the department in charge of sale or storage of petroleum resources-DPR received N53.479 billion and N37.219 respectively within the same period.
In 2017, FIRS got an approximated sum of N87.444 billion, NCS: 46.028; and DPR: N29.784 billion. FIRS, Customs and DPR received the sum of N13.198 billion, N7.451 billion and N7.435 billion in January and February of 2018 alone.Compared to 2017, deductions to the agencies so far in 2018 are obviously higher than what was recorded in the same period of 2017 when the country was in recession and prices of oil products lower. For example, the N3.59bn and N2.94bn Nigeria Customs got in January and February last year are lower than the N4.087bn and N3-364bn recorded by the same agency in the same months of 2018. Also, the N13.198bn received by FIRS in January and February, 2018 is higher than the N10.14bn recorded in the same months of 2017 by N3.058bn. In that same vein, DPR’s N7.435 received in the first two months of this year is higher than the N4.05 of last year by N3.385bn.
In March when the Federation Account Allocation Committee (FAAC) disbursed the total sum of N466.93bn to the three tiers of government as revenue generated in February of 2017, the revenue generating agencies took N2.94bn, N4.15bn and N1.74bn respectively as statutory cost of revenue collection in the same period. A detail look at the figures that were obtained by our reporter showed that in April 2017, when FAAC received and disbursed the sum of N496.39bn to the three tiers of government as revenue generated in March, NCS, FIRS and DPR received N3.84bn, N5.13bn (including N3.146 VAT) and N3.61bn respectively as cost of revenue collections.
In May when the revenue agencies received a total of N9.84 billion as cost of collecting revenue for the federation, the total amount transferred to federation and VAT Pool Accounts is N418.82bn as revenue generated in April, which was shared to all the 774 Local Government Areas, 36 States, the Federal Capital Territory and the Federal Government. A breakdown of the figures showed that NCS received N3.01bn, FIRS: N5.39bn and while DPR took N1.44bn. Summary of Gross Revenue Allocation by FAAC for the Month of May, 2017 Shared in June, 2017.
In the month, NCS, FIRS and DPR received N3.67bn, N7.76bn and N2.24bn respectively. The FIRS receipt includes N3.199 billion received from VAT collection. The three tiers of government shared N462.36bn in the month. The Revenue generating agencies such as Nigeria Customs, revenue agency and Department of Petroleum Resources received N3.78bn, N14.58bn and N1.78bn respectively as cost of revenue collections in June.
The federal, state local governments of the federation got a total of N652.23bn in July 2017 from the revenue generated in June 2017. In July and August last year, Nigeria Customs deducted N3.63bn and N4.59bn, during which FIRS received N6.76bn and N9.60bn, including its 4per cent deduction on VAT alone which stood at N3.221, while DPR got N2.12bn and N1.58bn respectively as cost of revenue collections. FAAC disbursed the sum of N558.08bn to the three tiers of government in October 2017 from the revenue generated in September 2017.
Before that amount was approved for sharing, Nigeria Customs had deducted N4.04bn, FIRS: N6.67bn and DPR: N3.21bn. The September allocation to all the tiers of government was lower than the N532.76bn shared among the three tiers of government in November from the revenue generated in October when the revenue generating agencies of government – Customs’ 7 per cent cost of collect stood at N4.56bn, FIRS’s 4 per cent collection fee from VAT and other forms of taxes resulted in N5.68bn deduction and N3.08bn went to DPR for the same purpose as 4 per cent cost of collection.
The Revenue generating agencies such as NCS, FIRS and DPR received N4.74bn, N7.95bn and N3.65bn respectively as cost of revenue collections, whereas the three tiers of government got the sum of N609.96bn comprising of N529.53bn from the Statutory Account and N80.43bn from Valued Added Tax (VAT). That was about the case in December when NCS took N3.638bn, FIRS, N7.78bn including VAT: N3.217bn, with DPR taking N3.104bn.
