25 July 2016, Lagos – Three major revenue collecting agencies of the federal government have generated a total of N142.6 billion between June 2015 and May 2016.
This is the cost of revenue collected by the Nigeria Customs Service (NCS), the Federal Inland Revenue Service (FIRS) and the Department of Petroleum Resources (DPR).
It was followed by the NCS with the sum of N35.78 billion which was seven percent of the total revenue it collected for the federation, while the DPR got N20.88 billion, amounting to four percent of its collected revenue within the period under review.
The total cost of collection by FIRS in the 12 months under review which was N85.94 billion is higher than the combination of what NCS and DPR received which amounted to N56.66 billion.
Most of the high cost of collections shared by the revenue collecting agencies were made in 2015, while the lowest disbursements were made in 2016.
For instance, within the period the highest cost of collection received by FIRS was N23billion in July 2015; that of NCS was N3.5billion in November 2015 and that of DPR was N2.5billion in July 2015.
Meanwhile, the lowest cost of collections received by FIRS was N4.2 billion in April 2016, that of NCS was N1.1 billion in May 2016 while DPR got N1.1 billion in March 2016.
The three federal revenue collecting agencies are entitled to the special allocations from the Federation Account as cost of collection and is meant to incentivise them in their revenue drive.
NCS receives seven per cent of the monthly revenue it generates for the federation from import duties, excise duties, fees, CET on Special levy, Customs Penalty Charges and Auction Sales.
FIRS receives four per cent of the monthly revenue its generates from Value Added Tax (VAT), Petroleum Profit Tax (PPT) on Oil and Gas, Company Income Tax, Personal Income Tax and other taxes, while DPR receives four per cent of monthly revenue it generates from royalties on crude oil and gas concessions, rentals, gas flaring penalties, among others.
The collecting agencies do not feature in the federal government’s budgeting process as their operations are funded from the revenues they are entitled to from the Federation Account to defray their cost of collection.
- This Day