Tag: revenue

  • Customs generates N623m revenue

    The Seme Command of the Nigeria Customs Service (NCS) recorded revenue of N623.9 million in August, lower than the figure recorded in July.

    The Command’s Spokesman, Mr Ernest Olottah, told the News Agency of Nigeria (NAN) on Wednesday in Badagry that the total revenue recorded in July was about N96 million higher than that of August.

    “The revenue for the month of August is lower than that of July because trading activities during the month were quite low.

    “With time, trading activities will increase, because the year is coming to an end soon,’’ he said.

    Olotta said that the command made 97 seizures with Duty Paid Value (DPV) of N27.27 million.

    He said the seizures included cars, rice, vegetable oil, second-hand clothes, frozen poultry products and general goods.

    The spokesman told NAN that two suspects were arrested for various offences during the period.

    He urged Nigerians to desist from smuggling due to its danger to the economy.

    “We need to come together to save our economy by avoiding smuggling and embracing legitimate trade.

    “In the course of importing and exporting any product, all protocols must be followed and that includes paying levies and duties to the customs,’’ he added.

     

  • Obasanjo urges RMAFC to ensure equitable revenue sharing

    Obasanjo urges RMAFC to ensure equitable revenue sharing

    Former President Olusegun Obasanjo yesterday in Abeokuta stressed the need for a fair and equitable revenue sharing formula.

    He spoke when members of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) visited him ahead of the proposed review of the revenue sharing formula.

    Chief Obasanjo said the sharing of revenue among the three tiers of the government must be proportionate to their responsibilities.

    He said items on the exclusive and concurrent lists in the constitution must be quantified to determine how the nation’s resources should be allocated.

    “We must determine how much security, education or health cost and then determine how much should be allocated to each,” he said.

    Obasanjo noted that such quantification could be a difficult exercise, but emphasised that it was necessary to avoid a lopsided or a disproportionate revenue sharing formula.

    He said such technical exercise might require the services of experts and advised that consultants could be engaged for the purpose.

    The ex-president also stressed the need for the commission not to jettison the fund mobilisation aspect of its responsibility.

    He said it was sad that adequate attention had not been paid to fund mobilisation.

    “I always want to emphasis the nomenclature of your commission and stress that mobilisation comes before allocation,” he added.

    “Please note that it is very important that you do not only concentrate on revenue allocation, but you must also seek to find out what the local governments, states and the Federal Government are doing to mobilise revenue.”

    On the issue of local government autonomy, Obasanjo recalled that councils were first allocated funds directly from the centre in 1976 when he was a military head of state.

    He said the decision was neither a mistake nor by accident, stressing that that level of government was meant to operate as “governments” in the real sense of the word since councils are the closest to the people.

    Chief Obasanjo noted that through the local government reforms of 1976, criteria such as population, space and contiguity were considered for the creation of local governments.

    He, however, expressed concern that subsequent military governments played down on such important factors in the creation of local governments.

    The Chairman of the commission, Mr. Elias Mbam, who spoke earlier, said the members were in Abeokuta to consult with Obasanjo ahead of the review of the existing revenue sharing formula.

    “We feel that we need to consult with you on such a sensitive national issue to tap from your wealth of experience.

    “We have been meeting other national leaders and stakeholders across the nation so that the commission can come up with an acceptable formula,” he said.

    According to him, the commission would soon start zonal public hearings on the issue.

  • ‘APC states have alternative revenue sources to oil’

    Regional development, culture, tourism and cocoa production have been identified as alternative sources of revenue for the South West.

    Oyo State Deputy Governor, Otunba Moses Adeyemo Alake, who made this assertion added that the potentials in the identified sources could be money spinners for the nation and the zone if adequately explored and harnessed.

    Speaking at the 2013 Udi Iroko Cultural Festival in Ado-Ekiti, the Ekiti State capital, as a guest of the state Deputy Governor, Prof Modupe Adelabu, Adeyemo said that the All Progressive Congress (APC) controlled states in the region and Edo State are already thinking and planning on how to harness other areas which could serve as alternative revenue sources to finance its various developmental projects.

    While making reference to many of the outstanding projects in the country today which were financed with revenues derived from coca plantation in the Southwest, groundnut pyramids in the north, rubber plantations from the South and coal from the East, Adeyemo stressed the need for the country to diversify its source of revenue generation and stop paying lip service to agriculture development.

    Adeyemo said that governments in the South West zone have already taken decisive steps to resuscitate cocoa production, develop tourist potentials which abound in the zone and elevate cultural festivals.

    He listed such potentials as Udi Iroko Festival in Ado-Ekiti, Osun Osogbo Festival in Osogbo, Eyo Festival in Lagos, traditional “ofi” weave attire in Iseyin, Oyo State.

    Adeyemo said these cultural events could be elevated to world-class festivals which will generate substantial revenue to South West states.”);

     

  • Fed Govt to close revenue agencies’ bank accounts

    Fed Govt to close revenue agencies’ bank accounts

    Beginning from next Monday, the Office of the Accountant-General of the Federation will close the accounts of agencies, which have withheld the revenue that should have accrued to the Consolidated Revenue Fund.

    The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, stated this yesterday in a statement circulated to media houses.

    She said: “Starting Monday, June 17, 2013, the Office of the Accountant-General of the Federation, in exercise of its powers under the extant laws and rules, will close the accounts of agencies involved in this practice in all banks.”

    The minister explained that “this process of systematic closure will continue until all monies that should be in the Consolidated Revenue Fund are retrieved”.

    She said it has come to the attention of her ministry “that some Federal Government agencies that generate independent revenue, in collusion with some banks, have refused to remit monies to the Consolidated Revenue Fund (CRF) of the Federal Government which they are obliged t do by law”.

    The Ministry of Finance, she said, has identified about N58 billion of such monies, which rightfully belongs in the CFR.

    Dr Okonjo-Iweala added that “the objective of this conspiracy against the national interest is clear: to keep government monies indefinitely in accounts earning interest for individuals at the expense of the Federal Government and the Nigerian people”.

    This practice, the minister stressed, “is totally unacceptable and the Federal Ministry of Finance is determined that this practice must end forthwith”.

    According to her, this unwholesome practice “has persisted, despite the efforts of the Office of the Accountant-General of the Federation (OAGF) to encourage the agencies and the affected banks to do the right thing”.

    “Rather than comply, the agencies and banks, through their lawyers, have engaged in all manner of legal subterfuges to ensure that monies which are due to the Federal Government are not remitted,” she added.

  • Emergency threatens telecoms revenue

    Emergency threatens telecoms revenue

    The dusty, remote spot in Nigeria’s far northeast where the military says insurgents operated a major camp is now little more than burnt-out cars, strewn trash and unanswered questions.

    More than three weeks into a military offensive seeking to end a years-long insurgency by Islamist extremist group Boko Haram, Nigeria has claimed important successes, but the truth is difficult to determine.

    It has denied killing civilians, though it declines to provide numbers or details on casualties.

    Soldiers say Boko Haram members have “scattered” in areas where the army has pushed them out, but they cannot say where, only that “hundreds” have been arrested.

    Thousands of residents have fled into neighbouring Niger and Cameroon, and some allege soldiers indiscriminately killed civilians in raids before the offensive officially began. The military denies this.

    Mobile phone lines have been cut in much of the region since the start of the offensive on May 15 and visiting remote areas independently is difficult if not impossible.

    Journalists recently visited the deserted Boko Haram “camp” soldiers say they chased insurgents away from near the village of Kirenowa as part of a tightly orchestrated military tour.

    The tour wound into a patch of the semi-desert northeast, where acacia trees and shrubs dot the dry, flat landscape along with occasional villages of brick houses with thatch roofs.

    Military officials have at times provided conflicting details of operations, including involving the camp near Kirenowa, raising further questions over which version if any is correct.

    In 2009, Nigeria launched a brutal offensive against Boko Haram that killed some 800 people and forced the group underground for more than a year — but they returned with even deadlier attacks.

    This time the security operation “involved not just the military but the security agencies of the country,” Brigadier General Chris Olukolade, a defence spokesman, told reporters on Thursday.

    “The network this time is perfect, I mean near perfect, in the sense that the operation was planned to ensure their bases were dislocated — not just dislocated but completely wiped out.”

    Some say the offensive may have obliterated the possibility of legitimate dialogue, while others have expressed doubts that a military operation could lead to lasting peace.

    “The entire Chinese army cannot solve this problem,” said Bulama Mali Gubio, spokesman for an influential elders’ forum in Nigeria’s Borno state, Boko Haram’s original home base.

    Military abuse accusations

    Boko Haram’s insurgency has been under way since 2009, but a series of particularly violent events preceded President Goodluck Jonathan’s state of emergency declaration on May 14 in the volatile northeast of Africa’s most populous nation.

    In April, the military faced accusations of major abuses after nearly 200 people were left dead in the town of Baga, with residents alleging soldiers shot civilians and set fire to much of the community.

    The Red Cross put the death toll at 187, but the military insisted that only 37 people died in the fighting, while saying insurgents caused the blazes.

    A May 7 attack in Bama saw insurgents disguised in military uniforms break into a prison and attack several government buildings, leaving 55 people dead. Nigerian authorities later said they freed three women and six children abducted by Boko Haram during the attack.

    However, there were also accusations of military abuses in Bama. Ali Elhadji, a 56-year-old who fled back to his parents’ home village in Cameroon, Gance, said Boko Haram had spread violence in Bama and soldiers brutally retaliated.

    He said soldiers arrived several weeks before the May 15 start of the offensive and killed indiscriminately.

    “They killed all those who appeared young and who they crossed in the streets,” he told AFP recently in Gance. “They killed many innocents.”

    There is no question that the insurgency mainly in Nigeria’s deeply impoverished north has been brutal.

    Boko Haram is blamed for hundreds of deaths through suicide attacks, targeted killings, car bombings and other means.

    In declaring the state of emergency, the president said the group had taken over pockets of territory in the remote northeast.

    Soldiers said the extremists even raised their own flags in the Marte area.

    At the same time, the military’s response to the insurgency over the last several years has come under heavy criticism, with widespread accusations of extra-judicial killings, arbitrary arrests and unlawful detentions.

    Diplomats and analysts have long said a military solution alone is unlikely to resolve the problem, stressing that conditions in the severely underdeveloped north must be addressed.

    The government in Africa’s largest oil producer has more recently sought to portray itself as offering a carrot-and-stick approach, carrying out the offensive but also forming a panel to look at possibilities for offering an amnesty to insurgents.

    It recently released 58 women and children who had been held in connection with the insurgency. Boko Haram leader Abubakar Shekau had demanded that the government release the wives and children of its members.

    But with the offensive grinding on and its details unclear, it is difficult to know what effect if any such moves have had.

    “Is it dialogue with the people you are pursuing with troops, with armoured tanks and with fighter jets?” Gubio said. “Are these the people you are trying to give amnesty to?”

  • New revenue formula ready in  December

    New revenue formula ready in December

    The new revenue formula may be ready by December this year,The Nation has learnt.

    Going by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) timeline, work on the formula might be completed before December.

    A source at the Commission, who pleaded not to be named, said the new revenue formula “is shrouded in secrecy for now.”

    The source said some funds had been released by the Federal Government to conclude work on the new revenue formula, adding that the money was being released “in tranches”.

    He said N1.3 billion has been appropriated this year for the exercise, adding: it “would be used for upgrading of ICT infrastructure and data collection nationwide; stakeholder engagements and advocacy, and the purchase of logistics for state operations.

    With the partial release of  funds for the execution of the new revenue formula,“the exercise for the new revenue formula is now fully on course,” the source said.

    It was learnt that the RMAFC would embark on sensitisation tours, and ask for repeat of submission of memoranda to allow those who did not make submission earlier to do so.

    The commission will also hold town hall meetings involving “all stakeholders, particularly the three-tiers of government to make it more inclusive so that nobody is left out.”

    It was learnt that consultations are on-going with other stake holders, like the National Boundary Commission, the Surveyor-General of the Federation and the states equivalents to address the thorny issue of boundary delineation.

    Security challenges and paucity of funds impeded operations of the RMAFC towards releasing the much- awaited revenue formula last year, the source said.

    A commissioner at the RMAFC, who asked that his identity be veiled, said “there are strong indications that state governments may get more than 26.72 per cent, but it is uncertain if they will get more than the Federal Government,” as it’s been canvassed in some quarters.

    Under the revenue sharing arrangement, the Federal Government gets 52.68 per cent, states 26.72 per cent and local governments, receive 20.60 per cent.

    A source said states have been clamouring to get the lion share, arguing that they have more responsibilities that require funding than the Federal Government. They claimed to be funding most federal agencies, rehabilitate federal roads in their jurisdiction, and even fund JTF activities in their states.

    Despite the fight from the state governments, they have been accused of “muscling local governments not to have financial autonomy, because of elections. They want to decide who gets what and it is through the effective control of local governments that they can do so,” the source said.

    He said: “Since the Federal Government has exclusive control of slush funds like Excess Crude Account and Natural Resources Funds, it can muscle states and carry out projects that are of little value to the society.”

    The solution, he said, is through constitutional amendment by the National Assembly. The logical thing, he added, should be that states and local governments, which are more in number should get more allocation in the new revenue formula, but the Federal Government still takes the lion share. The Federal Government is comfortable with what it has, so it is silent for now, the source stated.

    There are serious encumbrances to this solution. One is that the Nigerian Constitution cannot be effectively amended without the governors who have a firm grip on majority of their state assemblies.

    The revenue formula was put together by the RMAFC under the chairmanship of Hamman Tukur. It was not passed by the National Assembly and ended up as an executive order during the Obasanjo administration, a development which ushered in the 13 per cent derivation principle.

     

  • Benefits of tax revenues, by CITN boss

    Benefits of tax revenues, by CITN boss

    An economy that is able to sustain its citizens must leverage on tax revenues, as the most reliable source of fund for national development and transformation, President, Chartered Institute of Taxation of Nigeria (CITN) John Jegede has said.

    Speaking at the institute’s induction in Lagos, he told the inductees that their role is to assist the government and taxpayers to plug loopholes and bring into the tax net more individuals.

    He said a situation where negligible percentage of taxable persons pays taxes is very disheartening, stressing that professionals must rise up to the challenge to ensure Nigeria’s economy is diversified through taxation.

    Jegede said the institute is determined to collaborate with various stakeholders on training of tax practitioners in various organisations and agencies. He said: “While commending stakeholders for their unalloyed support to the Institute, it is my hope that the existing mutual co-operation between governments at all levels and the Institute would go a long way to improving the effectiveness of the various states’ revenue agencies while at the same time strengthening the confidence of taxpayers in the Nigerian tax system,” he said.

    He said in realisation of the need for the institute to be visible in the league of professional bodies, the institute has positioned as a force to be reckoned with, locally and internationally.  “We have a good working relationship with Taxation Institutes in Ghana, South Africa, Senegal, Sierra Leone, Liberia, Mali and Burkina Faso through the auspices of West Africa Union of Tax Institutes (WAUTI) and Association of African Tax Institutes (AATI),” he said.

    However, Igho Dafinone, a tax expert, said a good tax system should be as efficient as possible to collect in terms of cost per collection. It should also be as neutral as possible so that all those in similar situations are subject to the same incidence. He said a sound tax system should also be as simple as possible to comprehend and comply.

     

  • Councils’ revenue increases

    The six area councils of the Federal Capital Territory recorded an increase of N281, 174,986.71 (13.4 per cent) in their revenue allocation for February.

    Abaji, Abuja Municipal, Bwari, Gwagwalada, Kuje and Kwali councils received revenue allocation of N2, 380,208,667.17 from the Federation Account for February compared with the sum of N2, 099,033,680.46 received for January.

    The acting Permanent Secretary, FCT, Alhaji Nuhu Ahmed who disclosed this during the monthly FCT Area Councils Joint Account Allocation Committee meeting, attributed the increment to the improved inflow from Value Added Tax (VAT) and the arrears of January Budget augmentation.

    Ahmed, who represented the chairperson of the FCT Area Councils Joint Account Allocation Committee and the FCT Minister of State, Oloye Olajumoke Akinjide, disclosed that N1.041 billion was received for the five per cent VAT in February as against N1.007 billion in the preceding month.

    He gave the breakdown of the allocations from the Federation Account as: N731.26 million from Statutory Revenue Allocation, N56.77 million from Subsidy Re-investment and Empowerment Programme (SURE-P) and N23.10 million being refund by the Nigerian National Petroleum Corporation.

    Other allocations from the Federation Account were: N250.35 million being arrears of January 2013 Budget Augmentation and N277.09 million being differential between budget and actual.

    Of the N2.38 billion revenue allocation, Ahmed stated that the JAAC transferred N894.43 million to the FCT Universal Basic Education Board (UBEB) for payment of the primary school teachers’ salaries in the area councils; N95.04 million to FCT Area Councils Pension Board (ACPB) being 15 per cent pension fund as statutorily required, and N23.80 million to FCT Area Councils Service Commission being one per cent training fund, also statutorily required.

    According to him, the net revenue allocation of N1.366 billion was distributed to the six area councils, with Abuja Municipal Area Council receiving the lion share of N319.58 million, as against N242.75 it received in January, 2013.

    The FCT Area Councils Joint Account Allocation Committee also distributed N233.77 million to Gwagwalada Area Council, N218.94 million to Bwari Area Council, N205.91 million to Kuje Area Council, N194.79 million to Kwali Area Council and N193.92 million to Abaji Area Council.

    Gwagwalada, Bwari, Kuje, Kwali and Abaji got net revenue allocations of N190.38 million, N198.28 million, N167.92 million, N155.29 million and N157.94 million, respectively.

    On SURE-P funds, Abuja Municipal Area Council received the highest allocation of N16.77 million, followed by Bwari (N9.28 million), Gwagwalada (N8.50 million), Kwali (N7.79 million), Kuje (N7.45 million) and Abaji (N6.96 million).

  • Nigeria lost over N2b fishing revenue last year

    The Nigerian Trawlers Owners Association (NITOA) lost over N2billion last year in fishing revenue.

    Lack of monitoring and surveillance equipment, the group said, has led to losses of over $60 million yearly through illegal fishing on Nigeria’s waters.

    The President of the association, Mr Joseph Overo, said the fishing sector is in a bad shape and urged the government to give it a bailout.

    The Chairman of Sea and Cargo Logistics Limited, Mr Raphael Christopher, alleged that many foreign ships pollute the nation’s marine environment with wastes and other pollutants, which affect fish stocks.

    The coasts, he said, were over-fished, catches declining, with environmental degradation affecting productivity and technical innovations lacking.

    A member of Fishery Association of Nigeria (FISON) Mr Foluso Gbadamosi said fisheries account for about 12 per cent of the government’s revenue in the Republic of Korea and that demand has continued to rise because the government is responsive.

    “The major species caught in coastal and inshore fisheries are hair-tail, mackerel, anchovy, squid, horse mackerel and blue crab. Distant water fisheries focus on saury, tuna, Alaska pollack, croaker and squid,” he said.

    Fishery resources in the Exclusive Economic Zone (EEZ) Gbadamosi said, have been protected for 50 years through regulations governing mesh size, fishing grounds and fishing seasons.

    The Korea government, he said, introduced stricter controls at the end of the 1990s, including the monitoring and control of foreign fishing vessels, stricter licensing and permits, a buy-back programme to reduce vessel numbers and boost the fishing industry.

    The introduction of Total Allowable Catches (TACs) for seven species by the Korean government and strict enforcement of rules and regulations to control illegal fishing activities in that country, “has led to the rapid development of their fishing industry,” he said.

    Nigeria, he said, is not exploiting its maritime resource due to technical constraints. For instance, Gbadamosi said no tuna vessels are based in the country.

    The Deputy Director, Nigerian Maritime Administration and Safety Agency (NIMASA) HajiaLamiTumaka said there were concerted efforts by the agency to police the waters in line with the nation’s extant laws as well as the International Maritime Organisation’s conventions, treaties and protocols that have been ratified and domesticated.

    She said any vessel that engaged in illegalities, which comprise illegal fishing, midstream discharge from mother vessels, bunkering, and dumping of harmful substances and ballast water into the maritime domain would be arrested and prosecuted.

    The management of the agency, she said, had in the last two years, showed a commitment towards securing the nation’s waters.

  • RenCap cuts Ecobank’s revenue growth forecast

    •Urges lender to raise capital

    Renaissance Capital (RenCap), an investment and research firm, has slashed Ecobank Transnational Incorpo-rated’s (ETI’s) revenue growth forecast for fiscal year 2013 to 16 per cent, from initial 19 per cent. The forecast is, however, higher than manage-ment’s 15 per cent revenue growth target for the year.

    RenCap, in an emailed report obtained by The Nation, said even if there is little improvement in the bank’s Net Interest Margin (NIM), management’s revenue-growth target implies a slower progression in non-interest revenues than it had previously assumed.

    It said though the bank’s management has been guided to higher deposit growth of 20 per cent, its biggest constraint is not lack of liabilities, but capital. It said that all indicators suggest that the group, if inhibited from raising more Tier 1 capital by existing shareholders, will have to raise non-convertible Tier 2 capital.

    “Following guidance from management at Ecobank Transnational Incorporated’s (ETI) capital markets day in January, we conclude that our previous forecasts were too positive. As a result, we have lowered our expectations for earnings growth in fiscal year 2013, which has implications for our 2014 and 2015 forecasts,” it said.

    RenCap said it reduced its forecast for the bank’s 2003 loan growth to 10 per cent from 25 per cent, on the back of management guidance, which it considered conservative, adding that there could be upside risk.

    Although ETI states it provides a pan-African banking solution, RenCap is doubtful its operations in-country competes effectively with the dominant local banks in all its markets.

    However, market-share data suggest the group has no trouble competing in countries, such as Ghana, Chad, Cote d’Ivoire and Burkina Faso, where it is the leading bank. It said the lender’s sub-optimal operations in east and southern Africa undermine the pan-African proposition.

    The research firm said with targeted revenue growth of 15 per cent this year, cost growth will have to be kept below low double-digits to deliver a Cost to Income Ratio (CIR) of 72 per cent or below. It said the bank’s proposed entry into its remaining five target markets – Ethiopia, South Sudan, Angola, Mozambique and Madagascar – remains a risky venture.

    “We exclude the $200 million of one-off expected income from the disposal of Oceanic Bank’s non-core assets from 2012 forecasts. Uncertainty around the timing of these disposals means this capital could come in over a longer period than initially indicated.

    “We have lowered our fiscal year 2013 forecast for net earnings to $251 million from $368 million; and 2014 forecast to $374 million from $502 million. We have rolled our forecasts forward by one year, to include 2015. We forecast 2015 net earnings of $524 million,” it said.