FIRS To Spend N119.7bn On Worker’s Salaries, Allowances

The Federal Inland Revenue Service (FIRS) has said it will spend N119,684,218,735 out of the N215,811,290,243.00 in this year’s budget on workers’ salaries and allowances.

A Senate report has indicated that out of the N119.68 billion earmarked for personnel cost in the 2022 financial year of the agency, N71,406, 099,169.00 would be used to pay workers’ salaries and wages.

The N71,406,099,169.00 consists of 12 months’ consolidated salary and “13th month salary” for workers of the country’s frontline tax agency.

The FIRS would also expend N48,278,119,566 on general allowances.

The sum of N39,033,373,266.00 would be used to settle non-regular allowances of workers consisting of workers’ performance bonus of 82 per cent and subsistence allowance of 18 per cent.

The balance of N9,244,746,300.00 out of the total personnel costs would be used to settle social contributions comprising employer contribution to National Pension Commission (PenCom) at 62.31 per cent; National Health Insurance Scheme (NHIS) at 31.16 per cent and Industrial Training Fund (ITF) at 6.53 per cent.

Out of the N60,160,518,057.00 approved for Overhead Cost for the agency, N10,011,680,000.00 is earmarked for miscellaneous expenses.

A breakdown of the miscellaneous expenditure shows that N2,901,300.000 is for corporate outfit grant; N2,735,380,000.00 for welfare packages; N2 billion for publicity advert and taxpayers education; N1.125 billion for medical expenditure; N500 million for refreshment and meals and N200 million for honorarium and sitting allowance payments.

Others are: N200 million for sporting activities; N150 million for postage and courier services; N100 million for annual budget expenses and administration and N100 million for hall hire, accommodation and events.

The agency would also expend N8,412,949,731.00 earmarked for material and supply (general) which comprises N6,917,949,731.00 for printing of non-security documents, N800 million (office materials and supplies), N340 million (computer materials and supplies, N140 million (other materials supplies), N100 million for drugs and medical supplies, N70 million (uniforms and other clothing) and N45 million for library books and periodicals.

Also, part of the overhead cost is N7.904 billion on other services (general), which include N1.7 billion for office rent; N1.3 billion for security services; N1 billion for cleaning and fumigation; N1 billion for special purpose services (enforcement); N500 million for operational meetings; N500 million for management retreat with stakeholders and N400 million for tax drive and enforcement programmes.

Other general services expenditure are: N370 million for board expenses; N300 million for other automation projects; N262 million for security vote; N200 million for tax investigation; N200 million for modernisation – change management support and N100 million for tax audit and monitoring, among others.

The FIRS would also spend N6.33 billion as grants and contributions (general) to local organizations – N3.3 billion, collecting MDAs – N2.75 billion, foreign organisation (CATA, VADA, ATAF, etc) – N200 million and professional bodies – N80 million.

Others include: N4.4 billion for consulting and professional services; N3.804 billion for Financial Services (general); N1.8 billion – fuel and lubricants, and N5.55 billion for social benefits (general) made up of reward for outstanding service N3 billion, contribution to staff housing loan scheme – N1.5 billion, contribution to workers’ asset loan scheme – N1 billion and N50 million for death benefits.

Besides, from the agency’s approved capital expenditure of N35,966,553,451.00 for 2022, the sum of N11.34billion is for the purchase of furniture and equipment (general), comprising: N7 billion for purchase of furniture nationwide, N2.5 billion for computer equipment, N1.5 billion for purchase of office equipment, N300 million for security/safety equipment and N40 billion for communication equipment.

The sum of N7,262,012,451.00 would be expended on special projects, which include FIRS new corporate headquarters – N6,012,012,451.00, big data (business intelligence) – N300 million, FIRS anywhere intranet revamp – N200 million, business process management operationalisation – N150 million, digitisation of documents (EDRMS) – N150 million, harmonisation of third party integration – N150 million and N100 million each for learning management solution, transfer pricing solution (upgrade) and resource management/allocation.

The agency would also spend N4,550,800,000.00 for the acquisition of land and building, N3,434,552,000.00 for rehabilitation/repairs (general), N3,586,780,000.00 for rehabilitation/repairs of offices (new projects), N2 billion for purchase of vehicles, N1,452,409,000.00 for construction of offices (new projects), N850 million on purchase of generators for offices, and power electricity distribution and election of street lights/access roads (Kano, Warri, Oyo).

Others are: N845 million for other infrastructure (ongoing projects – ICT), N400 million for other infrastructure – ongoing projects (PMO) and N245 million for other infrastructure – ICT new projects.

The Senate Committee on Finance in the report presented at plenary by its Chairman, Senator Solomon Adeola, observed that: “The Service Year 2022 budget estimates is based on Zero based Budgeting.

“The Committee observed that the 2022 projected cost of collection of N215.81 billion is lower than the 2021 approved estimate which stood at N216.65 billion.

“This represents a Cost of Collection (CoC) decrease of N840 million on the overall projected non-oil revenue.

“The increase in Personnel Cost is based on staff strength on the payroll, including social benefits (such as NHIS, pension contribution, etc) and anticipated performance bonus for the year.

“The increase in Overhead projection can be attributed to the need for more robust operational activities, which has a direct relationship with overhead budget lines, like electricity tariff, generator fuel cost, legal services due to tax dispute, local travels and transport and critical ones that relate directly to tax collection and administration.

“The capital cost estimates reported include new projects which are to be executed during the 2022 financial year.

“These are as a result of expected completion of projects, payment of retention on completed projects and some new projects for effective revenue drive.”