The Nation Newspaper

Tag: revenue

  • Council chief hopes for more revenue

    The chairman of Kwali Area Council, Mr Ibrahim Daniel has expressed the hope that the FCT Internal Revenue Service Board inaugurated in May will collect more revenue in the area councils.

    Speaking during an interview, Daniel said that there were many areas in the council and FCT where that authorities could not collected revenue because there was no enabling law.

    He added that with the board in place, revenue collection will be made easier.

    There was no enabling law. Like the property task in Abuja, it runs into billions of naira. From the projection, in FCT, if they are to collect revenue on it, it will run into billions,” he said.

    He noted that development will be recorded in the councils as whatever the board collected as revenue, 60 per cent will be plunged back to the councils.

    “The good news for the councils is that whatever the board collected from the revenue, 60 per cent will be plunged back to the council. It is a massive change,” he said.

    Daniel expressed hope that though the board will face various challenges, the FCT residents will begin to get its impact before the year runs out.

    “There might be challenges this time around, administrative structures, modalities for collecting the revenue and how to kick-start it. I am sure that before the year runs out, we will begin to get the impact of the FCT Revenue Board,” he said.

    Recall that the former Minister of Federal Capital Territory (FCT), Malam Bala Mohammed, has the inauguration the board following the signing of the law by former President Goodluck Jonathan.

    Mohammed had stated  that the FCT administration expects to generate N400 billion annually through the board adding that the board had responsibility for assessment, collection and accounting for revenues accruable to the FCT and other related matters.

  • Customs makes $20m monthly as revenue loophole is plugged

    Customs makes $20m monthly as revenue loophole is plugged

    The Nigeria Customs Service (NCS) is saving the nation over $20 million (about N4 billion) monthly through the Pre-Arrival Assessment Report (PAAR), The Nation has learnt.

    The country was hitherto losing money until Customs took over the processing of import transactions – in line with the amended Import Guidelines of the Destination Inspection Scheme.

    A senior Federal Ministry of Finance (FMoF) official confided in The Nation that the last administration paid $2.4 billion (about N480 billion) in eight years to former service providers at the seaports before Customs Comptroller-General (CCG) Dikko Abdullahi introduced PAAR.

    Customs, it was gathered, was contributing N30 billion to the Federation Account before Dikko was appointed. It is now generating over N100 million monthly following the automation of its operation by Dikko.

    The Customs’leadership, the ministry official said, is implementing a critical reform and has repositioned its men for trade facilitation.

    The NCS, he said, provides timely, authoritative and accurate information about trade to business communities worldwide through the Nigerian Trade Portal (NTP), which it created.

    “The leadership of the Nigeria Customs Service (NCS), in response to the numerous challenges militating against smooth cargo clearance at the ports, came up with an indigenous data base known as the Nigeria Integrated Customs Information System (NICIS), which is the platform for generating Pre-Arrival Assessment Report (PAAR).

    “For eight years, the Federal Government had to pay the former scanning service providers $2.4 billion. The amount was paid before the PAAR was introduced by Alhaji Dikko.

    “PAAR is a risk management tool that replaced the Risk Assessment Report (RAR) and was borne out of Dikko’s desire to boost the economy, instill discipline in the service, to facilitate trade, build better business relationship, transform cargo processes and see to the free flow of trade at the nation’s sea ports based on the global trend.

    “The majority of us in the Ministry of Finance are happy that the PAAR initiative has brought hope after it has allayed the initial fears of the stakeholders and other agencies of the government.

    “PAAR is a game changer for Customs.  Aside simplifying the clearing processing by ensuring things are done professionally at our ports, it has enhanced the nation’s revenue.

    “We have seen the difference between what was generated during Risk Assessment Report (RAR) regime and what was generated by Customs after the introduction of PAAR by Alhaji Dikko. The man and Customs high command have done a good job in boosting revenue profile of the country.

    “For instance, the Nigeria Customs Service witnessed a huge improvement in its revenue in December 2013 with the raking of N85, 455,977,095 (N85.46 billion). Not only that the revenue accruing to the Federal Government was up, the government also saved N4, 653,374,259 (N4.65 billion) the one per cent Comprehensive Import Supervision Scheme (CISS), which hitherto would have been paid to the service providers.

    The new cargo clearance regime has also received international acceptance and kudos as sister West African countries are sending delegations to now understudy the home grown scheme that was introduced by Dikko,” the official said.

    When The Nation visited Cotonou port last week, a Nigerian, Felix Ayantuga, praised Dikko for his trade facilitation scheme.

    Ayantuga said importers shipped their pipes to neighbouring countries because of the huge tariff in Nigeria.

    “We don’t have problems with the Nigerian Customs. Once you make genuine declaration, officers and men of the Nigerian Customs Service are ready to release your cargo. The introduction of PAAR has made cargo processing and release easier for genuine importers. If an importer makes genuine declaration at any seaport in Nigeria, his container would be released to him in less than two hours after examination.

    “Those that are complaining about Customs procedures are those involved in shady business which the Nigerian Customs is out to correct. For instance, once we load our pipes from here and we pay correct Customs duty at Seme or Idi-Iroko, we would be allowed to go without anybody disturbing you on the road.

    “Since we are the users of PAAR, I want to confirm that we were surprised at the level of competence of Alhaji Dikko in handling of the scheme so far. The delay at the ports in clearing goods had been taken care of and importers are allowed to do a self-assessment in clearing their goods subject to post-audit,” Ayantuga said.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA) Prince Olayiwola Shittu described PAAR as the best option to facilitate trade through the ports.

    “The last time I travelled abroad, some Nigerian importers over there asked me to tutor them on how to embark on quick cargo clearance from the seaport. I explained to them what PAAR is all about and the need for them to make genuine declaration when they bring their cargoes to Nigeria.

    “They were all elated after my explanation and full of praises for Dikko and his officers,” Shittu added.

    Nigeria, he said, is one of the 17 countries of the 179-member World Customs Organisation under the shackles of Destination Inspection agents before the introduction of PAAR.

     

  • Edo tells Perm Secs to block revenue leakages

    The Edo State Government has directed its permanent secretaries and directors to block leakages and fraud in their Departments, Ministries and Agencies (MDAs) or face the repercussion.

    The government gave the order at a seminar on enhancing internally generated revenue (IGR).

    Head of Service (HOS) Jerry Obazele, who issued a communiqué at the end of the seminar, said top civil servants resolved to block all loopholes and increase the state’s IGR to cushion the effects of the dwindling revenue from the Federation Account.

    Obazele said: “It was generally agreed that there is an urgent need in Edo State to increase the IGR because of the dwindling receipts from the Federation Account and other external sources of revenue to it.

    “Permanent secretaries in Edo State, as the accounting officers of their MDAs, should take necessary steps to ensure that the revenue accruable to their MDAs are duly identified, collected and remitted intact into the government’s treasury. The permanent secretaries should take necessary steps to ensure that revenue leakages are blocked.

  • FAAN to enhance revenue

    FAAN to enhance revenue

    In a bold move to improve the revenue base of airports for greater productivity, the Managing Director of the Federal Airports Authority of Nigeria (FAAN)  Saleh Dunoma, has established a special task force on revenue enhancement.

    Dunoma, who is expected to head the outfit, urged Regional and Airports Managers at a meeting last week to recover revenue at the point of collection, stating that defaulters should be   sanctioned where necessary.

    The airport managers were also mandated to step up efforts in recovering debts and initiating non-aeronautical revenue streams in order to meet up with revenue targets based on the authority’s 2015 approved budget.

    Dunoma reiterated the authority’s commitment to delivering services at international standards quality, in line with its mission statement.

    Speaking further, the Managing Director charged the Managers to promote a healthy relationship between the Aviation  Security Services and other government agencies at the airports, to discourage misunderstandings between various agencies at our airports.

    Meanwhile,Nigerian Institute of Business Development has praised the Federal Airports Authority of Nigeria (FAAN) for its cooperation and collaboration in advancing the course of the institute.

    In recognition of this effort, the body has concluded plans to honour Dunoma, with the  honorary Fellow of the Institute during its International Business Development Week/Summit in July, 2015 at Ikeja.

    The Registrar/Chief Executive Officer of the institute, Mr. Paul Ikele,expressed the Institute’s readiness to continue to collaborate with the authority in an effort to establish best business ethics in the country.

    Saleh, while accepting the award, thanked the institute for the  gesture and promised to sustain the good relationship FAAN has established with the institute. He expressed the hope that the partnership between the two bodies would ensure international business best practices in the aviation industry.

  • Dogara vows to block revenue leakages

    Dogara vows to block revenue leakages

    •Says economy’s distressed

    The Speaker of the House of Representatives Hon. Yakubu Dogara, has vowed to block revenue leakages from Ministries, Department and Agencies (MDAs).

    Dogara who spoke while he received the draft 8th Assembly Legislative Agenda from the Committee of Members and Experts he commissioned for the task some days ago, decried the situation whereby revenue generating agencies of the Federal Government hide under laws establishing them to withhold monies they generate.

    He said the House would debate the new legislative agenda next week and that the issue of revenue leakages would feature prominently.

    Dogara said even MDAs to retain certain percentage of the revenue they generate, there is need to review those laws in order to plug the leakages as most of them under-declare their earnings.

    He urged prudent management of the nation’s foreign reserve in such a manner that interest accrued are declared by the foreign fund managers which may be running into hundreds of millions of dollars.

    According to him, another key aspect that would be debated is the issue of donor funding with some of the committee members noting that between 10 and 17 percent of some ministries’ budgets are funded through foreign aids.

    The members said in most cases, the funds are neither reflected in the annual Appropriation Bill nor declared by the affected MDAs.

    Meanwhile, he said leaders must redouble their efforts if the country is to be rescued from its current state of economic woes.

    Dogara, who spoke yesterday while receiving a delegation of government officials, traditional institutions, business executives and politicians from Bauchi State lamented that the country’s economy  is in a state of ‘unmitigated disaster’.

    The delegation was led by the state House of Assembly Deputy Speaker, Nuhu Gidado.

    According to the Speaker, the challenges confronting the country have been well identified but finding solution remains the major challenge.

  • Real sector’s revenue to hit N5tr

    The Nigeria Industrial Revolution Plan (NIRP) plan of increasing the contribution of the manufacturing sector’s gross domestic product (GDP) from four per cent to 10 per cent by 2017 is realizable, a Bank of Industry (Bol) report has shown.

    The NIRP, launched in 2014, is a five year plan of the Federal Government of Nigeria to rapidly build up the industrial capacity and improve competitiveness in Nigeria.

    The concept is a commodity-based industrialisation strategy to promote value addition and economic transformation, including the reduction of the nation’s dependence on producing and exporting unprocessed commodities. It also aims to boost the annual revenue earnings of the Nigerian manufacturers by up to N5trillion per annum and by extension to create jobs and import substitution.

    Speaking on the developmental impact story of the Bank of Industry (BoI) in Lagos and its strategic support to NIRP, Managing Director/CEO Bank of the bank, Rasheed Olaoluwa,  said the bank is delivering its mandate with a strong corporate governance by adequately funding programmes through resource mobilisation, risk management, compliance, stakeholder engagement and cost optimisation.

    He said BoI has developed a five-year Strategic Plan 2015-2019 under advice from the international consulting firm of KPMG Professional Services and also structured a Large Enterprises Directorate along the key NIRP sectors of Agro Processing, Solid Minerals, Gas & Petrochemicals.

    On the bank activities in the SME’s sector Olaoluwa said the development bank has introduced new SME products such as Cottage Agro Processing Fund and NollyFund to support Agro Processing and Nollywood Sectors respectively.

    “We are more interested in SMEs and local industries bearing in mind that   SMEs are the bedrock of development  in any clime as they  contribute to GDP, employment & export generation, increasing value addition & technological advancement.”

    On the importance of SMEs, he said they require low capital to take off though they are feeders of large firm and biggest employers of Labour.

    Doing a comparative analysis he said China, Brazil, USA and Brazil have 75, 70, 55 and 54 per cent SME penetration and assured that BoI would continue to impact positively on the economy through the support of Small and Medium enterprises (SMEs).

  • Customs revenue generation up 20 per cent

    Customs revenue generation up 20 per cent

    Within one year, the Nigerian Customs Service (NCS) increased its revenue generation by 20 per cent, the Secretary General, World Customs Organisation for the West and Central African Region, Kunio Mikuriya has  said.

    Speaking at the Conference of Directors-General of Customs of the West African Region of the World  Customs Organisation in Abuja yesterday, he saidNigeria has demonstrated that Customs can be efficient and effective.

    He said: “Nigeria has shown that Customs can be efficient and effective in revenue collection. After one year, I heard that your revenue has gone up by 20 per cent.”

    According to him, the conference would focus on topical issues such as the Ebola disease and insurgency.

    Mikuriya said: “We talk about Ebola and even for this disease tragedy, Customs has to show solidarity and coordination at the borders.

    “These days, it is about security. Unfortunately, security concern is there.

    “The security is of course part of the economic competitiveness. We are now looking at security and how the Customs can contain it. Illicit trade is also there so there are so many challenges and expectation from the Customs community.”

    Speaking,  the  Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala explained that the NCS had not been able to make much revenue in the past from non-oil sectors.

    She said trade facilitation is one of the steps that the service has now adopted to boost revenue generation.

    The minister said the conference was not solely about trade facilitation and economies, it would also table cooperation across boarders for the control of diseases and insurgency.

    Iweala  said:  “In this conference, we are bringing stakeholders from the region; so it is not only about trade or about economies but we discuss how cooperation across borders for control of epidemic, diseases and for control of insurgency. And you have got all those customs agencies from East and Central Africa gathered around us here. I think that it is also crucial to discuss things about security and diseases.”

    The Comptroller-General of the NCS, Inde Dikko Abdullahi said the service will sign an agreement that anything that is coming into Nigeria, the Customs will escort it officially and hand it over to Nigeria.

    With this, he said compliance will be assured and there will be increase in revenue generation.

    According to him, 27 revenue offenders were prosecuted last year. “I am sure we still have some in the court so we are going on,” he said.

  • Chidoka assures on revenue automation project

    Chidoka assures on revenue automation project

    The Minister of Aviation, Osita Chidoka, has assured  that the Aviation Revenue Automation Project (ARAP),  aimed at automating all aviation-related activities at airports will be implemented .

    Chidoka, who gave the assurance when he met with the Chief Executive officers/CEOs of the ministry’s parastatals and agencies in Abuja, said there was no going back on the project.

    He warned that any Chief Executive who fails to comply with the project’s implementation will be seriously sanctioned, stating that ARAP is part of  the transformation agenda of the Federal Government, to assure regularity of revenue in the industry.

    It is also intended to improve  workers’ efficiency in the aviation industry, and enable agencies in the sector deliver higher quality services, he said, adding that it also create a credible data source for the aviation industry.

    He explained  that ARAP is structured and empowered to bring to reality the vision of the aviation industry, which is to make the industry a world Class provider of safe, secured and comfortable transport industry that is self-sustaining and pivotal to social economic growth. It is to transform the sector into an efficient, profitable and preferred mode of transportation.

    Chidoka urged stakeholders to embrace the project and support  the government in taking the sector to the level of meeting international best practices.

    The Minister constituted an inter-agency management committee to see to the success of the project

     

     

  • Dire consequences of declining oil revenue

    That the Nigerian nation has depended only on earnings from crude oil export for the past four or five decades to sustain the business of governance is not in doubt. The Nigerian nation has earned over 80% of its revenue from which the Federal Government, the states, the local governments, the ministries departments and agencies (MDAS) obtain their statutory monthly allocations. But since July 2014, these various organisations have all complained of being underpaid in the usual monthly revenue allocation. We have reached this unfortunate situation because of the dwindling revenues from the crude oil sales upon which the nation has depended over time.

    One is baffled why Nigeria up to this time should be dependent on only one commodity which it has handled for over four decades. It is unfortunate that we have missed the opportunity to utilise the cheap earnings from petroleum resources to diversify the nation’s economy and bring up the development of other resources. These various levels of government to whom these earnings were allocated have failed to diversify the nation’s economy by embarking on large-scale agricultural development, industrialisation, establishment of refineries to refine crude oil for home consumption and also to embark on export of refined oil to other nations. We also missed the opportunity to utilise such cheap money to establish adequate generating power plants to assist in the development of the entire economy, as this would have boosted industrialisation, manufacturing and technological development.

    We are experiencing the consequencesof overdependence on only one source of revenue, as we have failed to utilise the resources accruing from this to diversify the economy which would have resulted in earning revenues from numerous other sources. There are worries now over Nigeria’s diminishing earnings from crude oil export. The outlook for 2015 in respect of funding the future budgetary needs of governments is not only very gloomy but also poses a great deal of fear and pessimism for a number of reasons. As crude oil for export purposes is fast diminishing, the nation is facing prospects of a bleak future for its economic development. The crude oil exploitation has been riddled with large-scale pilfering right from source and most of the stolen items also easily find their way into the world market thereby posing as a competitor to the legitimate supply from Nigeria, just as many nations such as Ghana, South Sudan and Mozambique among others, producing crude oil may further reduce the demand from Nigeria. Facts have even emerged that the U.S.A, the major importer of over 80% of the Nigerian crude oil has reduced its demand from Nigeria to zero level. All countries that are dependent on crude oil export as sources of revenue for their development are already disturbed by the falling demand for this mineral resource in the world market. Therefore the amount of crude oil in demand from now and the following years would be drastically reduced particularly as alternative sources are being developed.

    Just as other countries are discovering the existence of crude oil under their soils, the U.S.A has discovered an alternative source which is through the shale oil and gas revolution. The U.S.A. is working hard on this to reduce or totally eliminate its purchase of crude oil from foreign countries. Even when the shale oil development is still in its formative stages, the U.S.A. has shifted from the import of crude oil supplies from Nigeria in favour of crude oil supplies from other nations. The loss of this important market has resulted in the decline in the crude oil production from 2.48 million barrels per day to less than 1.3 million barrels a day. The price of crude oil which peaked at $114 per barrel has dropped to about $60 per barrel.

    The consequences for Nigeria are serious as the funds accruable to the Federation Account have consequently fallen. Some members of the House of Representatives are already sensitising the nation on the inability of the Federal Government to release adequate statutory allocations to various ministries, departments and agencies (MDAS) since July 2014. In the same manner, the Federal Government, the states and the local governments would henceforth face dwindling monthly revenue allocation, with serious consequences for capital projects and recurrent expenditure.

    We are in this mess because of our total and over-dependence on the revenue accruing from crude oil sales and failure to diversify to develop other resources which are capable of contributing immensely to the development of our people. The failure of our rulers to build functional refineries, in addition to the mal-functioning four, is most unfortunate. Since we harbour the raw materials in the form of crude petroleum in large quantity, there is no reason why we should not build numerous functional refineries to meet our domestic needs and export the surplus to neighbouring countries. But it is unexplainable that while we export crude oil, we import refined oil for domestic use. Now with the dwindling harvest of revenues from crude oil, one wonders where Nigeria will find the financial strength to import and pay the exorbitant fuel subsidies to fuel importers.

    Inspite of the huge sums of money paid as fuel subsidies, citizens in other petroleum exporting countries enjoy cheaper petrol prices compared with Nigeria. These countries possess adequate refineries to satisfy domestic needs and produce extra for export markets.

    The loss of external markets for our crude petroleum resources will compound the problems of poverty ravaging this country. The Minister of Finance, Dr. Ngozi Okonjo-Iweala has proffered the dependence on excess crude account to solve this problem, this can be a solution for one or two months, it cannot provide the lasting solutions for the serious problems of under-development ravaging this nation.

    How do we solve the problem of inadequate resources to cater for the development of this country? We have failed to solve the problems of poverty, insecurity, unemployment, poor health and educational services, neglect of agriculture, poor rural and urban road networks, Boko Haram and other forms of insecurity ravaging this nation. Nigerian people should take note of the missed opportunities of the past by which the economy should have been diversified with the resources from crude oil. There is no doubt that the discovery of crude oil and its exploitation have ensured the relegation of agriculture.

    Nigeria used to be the greatest producer of palm oil, but we are now trailing hopelessly behind Malaysia which took its seeds from Nigeria. During the First Republic, the three regional governments of Nigeria viz western, northern and eastern regions depended on adequate production of cocoa, groundnut and palm oil respectively, but today all these have been neglected. Nigeria is accused of profligacy in the use of the proceeds from crude oil, yet we import refined petroleum.

    We have also failed to invest in petro-chemical products like fertilizers, grease and so on. Nigeria must buckle up to appraise its development strategy, through agricultural revolution, provision of sufficient electricity to support industrialisation, provide adequate employment opportunities for the teeming unemployed and provide adequate security for its people.

    • Senator Farukanmi writews from Iju, Ondo State.
  • Senate warns against recession as oil revenue tumbles

    Senate warns against recession as oil revenue tumbles

    • As 2015 budget passes second reading

    The Senate yesterday warned that the Federal Government should tackle the emerging economic recession facing the country with all the seriousness it demands.

    The recession, the Senate said, is occasioned by the downward trend in oil revenue.

    The warning came as the upper chamber read the 2015 Appropriation Bill for the second time, referring the fiscal policy to its Committees for further legislative actions.

    Senators took turns to debate the general principles of the budget, with Senator Olubunmi Adetunmbi stating categorically that the Senate is processing a deficit budget.

    The All Progressives Party (APC) Ekiti North lawmaker, asked the Senate to demand from the Federal Government how it plans to fund the deficit in the budget.

    Deputy Senate President, Ike Ekweremadeu, who summed up debate on the general principles of the budget, said: “Arising from the  debate on the 2015 Appropriation Bill,  I am happy that we have woken up to our responsibilities and this is also a wake up call to our nation as we face this challenging times of economic recession and the downward trend in our oil revenue.

    “I do believe that this is the time for us as a parliament, to ensure that while considering the appropriation bill for 2015, all the revenue items are captured.

    “Our Committee on Finance will help us to do that.  We need to ensure that all the revenue items are captured in the budget and determine a pool of resources to implement the budget when passed.

    “The federal government should also put up its thinking cap to develop new areas of revenue generation that would help us to drive our economy.

    “We have gone through this way before but eventually the oil price improved but unfortunately we did not learn any lesson while we enjoyed the oil boom.

    “I hope that this period, we will learn our lesson that will help us to be disciplined in our fiscal management and it is also time for us to also take seriously about our fiscal federalism so that states can develop their initiatives in increasing their revenue that would help them to manage themselves,” adding that we need to reflect as a nation on how to manage our economy and everybody will have to make sacrifices, going forward.

    He urged politicians to be mindful of their election expenses, stating that if anybody thinks that he would spend money and would recover it after the election, such would be disappointed because there would be no money to recover.

    Ekweremadu, then waxed philosophical, saying,“it may be that God has designed this way for us in order to make progress in terms of fiscal discipline.”

    He said the National Assembly is prepared to lead the fight to enthrone fiscal discipline in Nigeria.