The Nation Newspaper

Tag: Internally Generated Revenue (IGR)

  • FG gives conditions for further support to states 

    FG gives conditions for further support to states 

    …RMAFC designing new sources of revenue for states and LGs

     

    The federal government has warned state and local governments that further financial support to them will be based on how well they implement the 22 Action points of the Fiscal Sustainability Plan (FSP).

    Vice President Yemi Osinbajo made this declaration Monday in Abuja at a workshop organized by the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) on alternative sources of revenue generation for sustainable development in states and local government councils in Nigeria.

    Represented by the finance minister Kemi Adeosun, Osinbajo noted that “independent monitoring and evaluation of states against agreed milestones under the FSP, has been conducted and further consideration for support to states, will be solely dependent on reports from this exercise.”

    The Vice President stated that “fiscal discipline, improved revenue generation, rational allocation and efficient use of resources, must be strategies adhered to by every tier of government if we must return to a path of sustainable growth.”

    The 22-Point FSP for states and local governments he said “was introduced and acceded to by states governments in 2016 with the view to enhancing fiscal prudence and transparency in public expenditure, monitoring the ongoing public financial management reforms being undertaken by the federal government.”

    Osinbajo added that the strategic objective 2 of the FSP was focused on improving public revenues, requiring each state to set realistic and achievable targets for improving Internally Generated Revenue (IGR) from all revenue generating activities of the state in addition to tax collection.”

    The idea he said; “was for each state government to look inwards and come up with a plan that was best suited for their states based on available resources.”

    Other action points for the state governments include privatization of state owned enterprises, establishment of efficiency units to reduce overhead expenditures, biometric capture of all civil servants, implementation of continuous audit to reduce revenue leakages and measures to achieve sustainable debt management.

    Earlier in his address, the Acting Chairman of the RMAFC, Alhaji Shettima Umar Abba-Gana, said the commission was designing new additional sources of revenue and ways and means of generating and collecting these revenues for the benefit of the states and local governments.

    He lamented that the challenges of a troubled economy, occasioned by drastic fall in the international price of crude oil, the fall in the level of oil production security challenges and General drop in national productivity negatively affected the inflow of funds into the Federation Account.

    Abba-Gana expressed optimism that in due course, the over dependence on statutory transfers of funds from the Federation Account for governance by the states and local governments will begin to reduce.

     

  • Kaduna generates N6.7bn IGR from Jan to April – Official

    Kaduna generates N6.7bn IGR from Jan to April – Official

    The Kaduna State Internal Revenue Service (KDIRS) said  it generated N6.7 billion as Internally Generated Revenue (IGR) between January and April.

    The Executive Chairman of KDIRS, Muktar Ahmed, announced this in Kaduna on Thursday at a news conference to mark the second anniversary of Gov. Nasir El-Rufai led-administration.

    Ahmed said the state’s monthly revenue generation had increased from an average of N1.4 billion in 2016 to N1.7 billion in 2017.

    He reiterated the commitment of the service to attain its monthly revenue target of N4 billion.

    The KDIRS chairman said that the target was achievable, considering the efficiency in tax collection, courtesy of the new tax law in the state.

    According to Ahmed, the tax law has designated KDIRS as the only revenue collection agency in the state.

    He said that discussions were ongoing with the 77 revenue generating agencies in the state to abide by the provision of the law, to improve efficiency of tax collection.

    The News Agency of Nigeria (NAN) reports that the Kaduna State Tax (Codification and Consolidation) Law 2016 has automated all revenue collection and criminalised physical cash collection of tax.

    The chairman, however, acknowledged challenges being experienced in the process, particularly in rural areas where there were no banks.

    He said that the service had employed the services of money agents certified by the Central Bank of Nigeria and would soon deploye Point of Sales (POS) in all rural communities to ease tax collection.

    Ahmed said people’s negative attitude towards paying tax was the bane of collection in the country.

    “Tax is a word many Nigerians do not want to hear. Our attitude towards paying tax is not encouraging at all.

    “Maybe because tax payers hardly see what their money is used for. But this has changed with the coming of the APC administration.

    Ahmed said that Gov. Nasir El-Rufai had mandated the service to set aside N1 billion monthly for infrastructure across the state.

    “As you can see, hospitals are being renovated, roads are being repaired, drainage systems are being constructed and several other ongoing infrastructure across the state.

    “This is a conviction that tax payers’ money is being injected into infrastructure development in the state.

    “Therefore, people no longer have any reason not to pay their tax consistently and as at when due.”

    He disclosed that tax payers owed the state N5 billion in arears, stressing that KDIRS would utilise legal means to ensure that every tax payer met the tax obligations.

    The KDIRS chairman advised tax payers to, in their own interest, endeavour to pay taxes or face legal action.

  • Ajimobi promises to clear workers’ salary arrears

    Ajimobi promises to clear workers’ salary arrears

    Gov. Abiola Ajimobi of Oyo State has promised to spare no effort in ensuring that the state clears the four months outstanding salaries of workers in the state.

    He made the disclosure in a statement signed by his Special Adviser, Communication and Strategy, Mr Yomi Layinka on Sunday, ahead of the commemoration  of  2017 Workers’ Day celebration.

    The News Agency of Nigeria (NAN) reports that the state owes the workers four months salaries, having cleared the backlog till December 2016.

    Ajimobi urged the workers to continue to put in their best and key into the state government’s reform agenda aimed at enhancing productivity.

    “I congratulate the entire workforce in the state, including those in the private and informal sectors.

    “This year’s workers day has provided another opportunity for you all to take stock and assess your performance.

    “I can say without any equivocation that workers in the state are among the very best you can find anywhere in the country.

    “But, for the few yet to embrace the new order of hard work, accountability, dedication and commitment, I urge you join the trend,” he said.

    He said that the government was exploring many opportunities to enhance the Internally Generated Revenue (IGR) of the state, promising that no effort would be spared to clear the four months salary arrears.

    “No doubt, times are hard because of the pervading poor state of the economy.

    “I feel your pains and I’m optimistic that we shall soon sing a new song of prosperity and abundance. May none of you be missing by that time,.” he said.

    Ajimobi prayed for a hazard-free 2017 for workers in the state as the year enters the second quarter, and that God would give them good health to celebrate more workers’ days to come.

  • ASUU commences one-week warning strike in UI

    ASUU commences one-week warning strike in UI

    The Academic Staff Union of Universities (ASUU), University of Ibadan (UI) Chapter, has declared a one-week warning strike over illegal pension deductions, fractional salary payments and non-payment of supervision allowance.

    The decision was taken on Tuesday at a congress convened by the union and presided over by its Chairman, Dr Deji Omole.

    The report says members also complained over excessive deductions in their March salaries.

    The management of the university was also alleged to have failed to declare the Internally Generated Revenue (IGR) profile of the university.

    According to Omole, the warning strike is, therefore, to compel the university administration to address the issues which ASUU said bordered on the welfare of her members who are being owed since 2010.

    “The congress of ASUU, UNIBADAN, at its meeting of 4th April, 2017, having received permission from the national body of the union, hereby, declare a one-week warning strike.

    “The warning strike will commence from 12:01 midnight of Tuesday, 4th April, to 12:00 midnight of Tuesday, 11th April, 2017.

    “The congress of the union maintains that the failure of the university administration to satisfactorily resolve all the issues, will force the union to proceed on a comprehensive and total strike,” said Omole.

    The congress, which was well attended, was also addressed by the national delegates of ASUU, which included Professors Mahmood Lawan, from Kano; Tony Monye-Emina, from Benin and Bebe Sese, from Port Harcourt.

    The union had in a congress resolution in March warned the university management to address its grievances, bordering on reversal of illicit deductions and non-payment of promotion arrears.

    The three non-academic staff unions of the institution had also been on strike  since March 13, grounding administrative activities in the institution.

     

  • Unions oppose collection of education levy from Bayelsa civil servants

    The labour unions in Bayelsa, on Friday, opposed the Higher Education Students’ Loan and Education Development Trust Fund Law, which is meant to collect education levy from civil servants.

    The News Agency of Nigeria (NAN) reports that the law was signed to take effect on Wednesday by Gov. Seriake Dickson in Yenagoa.

    The law makes it mandatory for government officials in Bayelsa public service as well as those in the private sector to contribute to the education fund.

    The government is expected to contribute 10 per cent of the state’s Internally Generated Revenue (IGR) to support the education fund on a monthly basis.

    The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), explained that with the withdrawal of a 20 per cent tax waiver earlier granted to civil servants, the proposed levy would pose additional burden to them.

    The Bayelsa chapter NLC chairman, Mr John Ndiomu, who said that the workers were in support of the education development of the state, however, believed that the State Government could afford to finance it.

    Ndiomu urged the State Government to review the levy, as workers, who were  owed a backlog of salaries of more than six months, were grappling with how to survive the current recession.

    Also, Mr Tari Dounana, Bayelsa chapter TUC chairman, described the levy as “an anti-people’s policy” by the executive and the legislature, without any input from the stakeholders.

    “It is unfortunate that such a law that requires civil servants to make contributions from their salaries was passed and assented to without a public hearing for the stakeholders to make their views known.

    “We have already agreed to support the proposed Health Insurance Policy into which workers will also make contributions. This is one deduction too many.

    “For the government to formulate the education development fund without inputs from the labour, leaves much to be desired. We are opposed to it,” Dounana said.

    Shortly after signing the law, Dickson implored the workers to refrain from politicising the policy.

    He disclosed that N50 billion had so far been invested in the education sector by the  State Government.

     

  • Nigeria recorded N1.1tr IGR shortfall in 2016, says DG budget

    Nigeria recorded N1.1tr IGR shortfall in 2016, says DG budget

    …CBN director walked out of session

     

    Nigeria recorded a shortfall of N1.1 trillion in projected Internally Generated Revenue (IGR) in 2016 fiscal year, Director General, Budget Office, Ben Akabueze, told the National Assembly Thursday.

    Akabueze who gave the figure at a joint session of the Appropriation Committee of the Senate and House of Representatives, said that the country was only able to realise N398.335 billion out of projected N1.506 trillion IGR.

    He explained that the huge shortfall of N1.1trillion which should have been part of the funding cost accounted for the low 55 per cent capital release.

    The sum of N1.58 trillion was ear marked for capital budget in 2016.

    Akabueze also put statutory transfers fully cash-backed at N361 billion.

    The N1.3 trillion budgeted for debt serving was released, cash-backed and paid in full.

    Chairman of the Joint Committee, Senator Mohammed Danjuma Goje, said that the session became necessary for relevant officials, including the Minister of Finance, Central Bank of Nigeria (CBN) Governor, Accountant General of the Federation, DG Budget Office to brief Nigerians on the actual performance of the 2016 budget

    Senator Goje noted that the officials should specifically tell Nigerians what was appropriated, what was approved by the National Assembly, what was released and how much was cash-backed.

    The Accountant General of the Federation (AGF) Ahmed Idris, on his own put total capital releases at N870.55 billion while personnel cost was N239.68 trillion.

    Senator Goje demanded the percentage releases otherwise the figures given would be misleading.

    The committee said that not only the percentage releases but the amount cash-backed should be disclosed.

    On why the country recorded low level of 55 per cent capital release, Akabueze said that funding of the capital component of the 2016 budget was affected by low inflow of fund including fall in oil revenue.

    The DG budget office parried the question on whether loans collected by the country were used to finance personnel cost and overhead.

    Minister of State, Budget and National Planning, Zainab Ahmed, told the committee that though there were financial challenges, the highest releases went to infrastructure MDAs in line with the priority of government.

    She added that the target of government was that by the end of the fiscal year in May, a minimum of N1trillion would have been spent on capital budget.

    A mild drama had ensued at the beginning of the session when the committee walked out the representative of the CBN Governor, Mohammed El-Yakubu, an acting director in the apex bank.

    Before El-Yakubu was asked to leave the venue Senator Goje said: “We want to put it on record that we put aside other things we had to do for this session because of its importance to Nigerians. We invited the CBN Governor but he is not here.

    “The CBN Governor has no reason not to be here. He did not send any deputy governor to represent him. I don’t think the acting director here has the capacity to represent the CBN Governor. The Minister of Budget and National Planning called me directly to say that he would accompany the Acting President to Akwa Ibom State.”

  • Senate flays poor IGR by Information Ministry

    Senate flays poor IGR by Information Ministry

    The Senate has flayed poor Internally Generated Revenue (IGR) by the Federal Ministry of Information and Culture, particularly from the culture and entertainment industry.

    During a budget defence session on Tuesday, the lawmakers grilled the Information and Culture Minister, Alhaji Lai Mohammed over the N620, 000 his ministry generated in the entire 2016.

    Chairman, Senate Committee on Culture and Tourism, Senator Matthew Urhoghide, regretted that the ministry was only concerned about spending, with very little efforts at generating revenue.

    Senator Urhoghide said, “Budget is not just about expenditure. No one is talking about revenue. We need a revenue profile. Each time you come, only expenditure is mentioned. How can you say it’s only N620, 000.00 that was raised by your ministry from the culture sector?

    “We must exhaust all the avenues to generate funds internally. We seriously frown at your low and poor IGR. We query it. You must look inward because this is not acceptable”.

    Urhoghide, also queried the Minister for using the funds to acquire, saying that the Senate appropriated N60 million for the ministry for the same purpose.

    The committee chairman said the N60 million was meant to acquire land in Lagos, Edo and Adamawa states for the establishment of cultural industries in the three states.

    Senator Urhoghide, who is from Edo state, queried the Minister for acquiring land in two of the states (Lagos and Adamawa) leaving out Edo state.

    According to him, the initial budget was to accommodate six states, but was reduced to three, regretting that instead of the three, the Minister narrowed it down to two states.

    But Lai Mohammad blamed the lapses on inadequate appropriation as well as delay in the release of funds to his ministry, adding that the procurement process was also cumbersome.

    The Minister also cited inadequate release of appropriated funds and the placement of culture and tourism on the residual list as some of the challenges.

    He lamented the existing structure, saying that it makes it difficult for the government to regulate the sector.

    He also cited lack of political will on the part of stakeholders to develop the sector; as well as absence of convention bureau to attract big time events to Nigeria as a tourism destination. 

    Mohammed said, “There are several challenges militating against the smooth implementation of the required programmes/projects. Some of these are inadequate appropriation; delay in the release of funds; cumbersome nature of procurement process; partial release of appropriated amount; late passage of Appropriation Act; placement of culture and tourism on the residual list, which has made it difficult to regulate the sector; lack of political will to develop the sector and absence of convention bureau to attract big time events to Nigeria as a tourism destination”.

  • Budget: We’ll consolidate on modest achievement – Ambode

    Budget: We’ll consolidate on modest achievement – Ambode

    …Gov Delivering On His Promises, Says Speaker

    Lagos State Governor, Mr Akinwunmi Ambode on Monday signed the N812.998bn Y2017 Appropriation Bill to Law, with a promise that it would be judiciously implemented to consolidate on the modest milestones recorded in the last 18 months and propel the State to a path of prosperity.

    The Governor, who spoke at a brief but impressive ceremony, held at the Lagos House, Ikeja, said the 2017 budget, christened, “Golden Jubilee Budget” was his administration’s contract with Lagosians to continue to build an all-inclusive economy throughout the year.

    The Governor thanked the Speaker and members of the House of Assembly for their forthrightness and speedy consideration and approval of the Appropriation Bill, which he presented to the House on November 29, 2016, and was passed to Law on January 3, 2017.

    He said the N812.998bn Y2017 budget was in line with the State Development Plan 2012-2025, the Medium Term Expenditure Framework for 2017-2019, based on the State’s Four Pillars of Development Plan which include: Infrastructure Development, Economic Development, Social Development and Security as well as Sustainable Environment.

    Governor Ambode, while assuring that his administration would immediately hit the ground running to implement the budget, expressed optimism that the national economy would begin a path of recovery this year.

    “We are encouraged by the budget performance of last year (2016) which stood at 78 percent. Our total Capital Expenditure in 2017 will be N507.816bn while Recurrent Expenditure is estimated at N305.182bn.

    “Our government is committed to prudent financial management and equitable allocation of resources for the general good and will ensure proper fiscal discipline in the implementation of this Appropriation Law,” Governor Ambode said.

    While alluding to the fact that obligations and duties of citizens like tax payments have become noticeably better, self-induced and encouraging, Governor Ambode sought the cooperation and understanding of all taxpayers to successfully implement the budget, saying that government would continue to strive harder to improve service delivery in all sectors.

    “We encourage all taxpayers to continue in this spirit and also take advantage of available multi-pay channels in fulfilling their civic obligations. Do not pay to touts or illegal channels. Make sure your tax payments count. We are doing everything to eliminate poor services to you,” he said.

    In his goodwill message, Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, said the judicious implementation of the 2016 Budget by Governor Ambode, against all odds, has gone a long way to confirm his financial expertise.

     The Speaker, who was represented at the event by the Chairman, House Committee on Appropriation, Hon. Rotimi Olowo, said many laudable projects including the construction of 114 Roads across all the local governments in the state within a year was a first in the history of Nigeria.

    “That means by 2023, just in eight years, he would have done over 1,000 roads in addition to what the Ministry of Works and Public Works Corporation is doing.

    “Another area that is unbeatable is the ‘Light up Lagos’, which no doubt increases the economy of our mothers and fathers. That is in tandem with Article of Faith as entrenched in the 1999 Constitution, which summarily explains that the Governor is determined and committed,” the Speaker said.

    Earlier, Commissioner for Finance, Mr Akinyemi Ashade who gave a breakdown of the budget, said a total of N507.816billion has been earmarked for capital expenditure, while N305.182billion is for recurrent expenditure making up a total expenditure of N812.998billion and an aggregate capital to a recurrent ratio of 62:38.

    Ashade, who is also the Commissioner overseeing the Ministry of Finance, said Year 2017 budget which would largely be driven by Internally Generated Revenue (IGR) made up of taxes, rates, levies and others, would be focused on continuous promotion of massive investments in security, infrastructure, transport/traffic management, physical and social infrastructural development, environment, health, housing, tourism, power, e-governance, education, agriculture and skill acquisition.

    While explaining the sectoral breakdown of the budget, Ashade said a total of N141.692billion was earmarked for roads and other infrastructure, while Agriculture and Food Security got N4.795billion with Tourism and Environment getting N20.247billion and N24.031billion respectively.

    A further breakdown of the budget showed that Water got N20.082billion; Housing, N50.344billion; Health, N51.447billion; Sports Development, N9.457billion; Education, N92.445billion; Commerce and Industry, N1.500billion, Wealth and Employment Creation, N6.250billion; Women Affairs, N2.193billion; Youth and Social Development, N2.698billion; Governance, N11.193billion; Science and Technology, N11.000billion; Security, Law and Order, N39.722billion, while N3.800billion was set aside for the 7.5 percent Government Share to Pension Contribution and N7.150billion for Pension Redemption Bond Fund-Shortfall.

    On Transportation, Ashade said N49.077billion was earmarked for the Blue Rail Line, advancement of the 10-Lane Lagos-Badagry Expressway, construction of jetties and terminals especially for the Epe and Marina Shoreline Protection and procurement of ferries to improve on water transportation and encourage tourism, while also disclosing that attention would be paid to the expansion of BRT corridors in Oshodi-Abule-Egba, and other corridors.