Tag: revenue

  • Council to boost revenue from crocodiles

    The Chairman of Ogbadibo Local Government Area in Benue State, Mr Sunday Ojoh, has promised to transform the crocodiles in River Adu to a revenue source for the council.

    Ojoh told journalists in Makurdi that River Adu had plenty of crocodiles which were at the moment not being exploited.

    He said that he had plans toward training the unemployed youths of the area in harvesting the crocodiles for economic gains.

    He added that youths would be sponsored to Taraba State where they would be trained on the process of harvesting the crocodiles so as to generate income for themselves.

    He noted that the harvest of crocodiles would be an additional revenue base not only for the council but also as source of employment for the youth.

    Ojoh said that the council intended to construct rural roads linking the palm wine and palm oil producing villages for commercial production.

    He added that the council had started discussing with Lower Benue River Basin Authority to rent earth moving machines for the construction of the roads.

    He added that the rural road projects would cost the local government N50 million.

    He said that upon completion of the roads, the council would rake in huge fund in the form of internally generated revenues from the sources.

    “The local council will raise between N8 million and N10 million annually from such sources when fully utilised.’’

    He said that his administration placed much emphasis on youth empowerment rather than provision of jobs, adding that he intended to make agriculture the center piece of his projects.

    According to the chairman, the youth will also be trained in animal husbandry.

    He said that veterinary doctors had been contacted to set up clinics in the area to control airborne and animal diseases that might likely attack the animals.

    Ojoh said he had enlisted 30 youths with “very sound minds” for industrial skills acquisition training where they would learn trades like welding, building and carpentry.

    He assured that upon the completion of such programmes, the council would set up businesses for them.

    “We have already earmarked a large piece of land on Otukpa-Orokam road for the purpose of setting them up businesses.

    “So, we are going to have a very large industrial area that will encompass motor parks and the likes,” he said

    He advised the youths to get certificates of origin so they could access small scale loans from the local government which would help them to be on their own.

    “If we should employ, the council will be left with nothing for development purposes.

    “So within the few years of my administration, we will try as much as we can to position the youths in self-reliant ventures,” Ojoh said. (NAN)

  • Institute seeks autonomy for state revenue services

    The Chartered Institute of Taxation of Nigeria (CITN) has called on the 36 states to grant autonomy to their internal revenue service units.

    Reviewing the states implementation of last year’s budget, in line with their internally generated revenue (IGR), CITN Registrar/Chief Executive, Abayomi Jayeoba said it was not good enough that only five states gave such units autonomy.

    He said: “As governors get busy with their onerous task of states’ building, it is becoming imperative for them to be mindful of the economic realities and focus more on redefining internal revenue drive by improving the efficiency of revenue collection and administration in their jurisdictions.”

    Evidence, he said, abounds that autonomous revenue service for states has fared relatively better than their non-autonomous counterparts.

    He cited the Lagos State Internal Revenue Service (LIRS) which has been the major funding arm of the government in the past 10 years as a reference point in the state’s drive to improve its IGR.

    LIRS generates over N18 billion monthly, accounting for about 70 per cent of the state’s monthly income receipts, he said.

    Since the Federal Inland Revenue Service is autonomous, it is just a matter of time for non-autonomous states to follow suit, he said.

    He said CITN had met the states on the merits of granting autonomy to their internal revenue agencies.

    He added that unless a revenue agency is independent with powers to carry out its assignments without hindrance but in compliance with dictates of the law, government will continue to lose revenue and will be incapable of performing its socio-economic functions to her citizenry.

    Government policies in increased revenue generation can be best implemented with a state internal revenue service that is autonomous and consisting of professionally competent chartered tax practitioners, he said.

    He admonished the states to look inwards for alternative sources of funding if they are serious to diversify their economy and place little reliance on monthly allocation from Abuja.

     

  • Non-oil export revenue drops

    Nigeria’s non-oil export to Europe, America and Asia through Apapa Port, have declined by over N33 billion in one year.

    This decline further heightens apprehension over a major economic crisis in the country.

    Apapa Port, which is the country’s largest seaport, accounts for over 50 per cent of the nation’s non-oil exports through its eight major seaports.

    Area Controller of the command, Comptroller Mohammed Umar, who addressed reporters in Lagos on the activities of the command for last year, listed the export items to include palm kernel cake, cocoa beans and wheat bran pallets.

    Others were cashew nuts, sesame seeds, ginger, hibiscus flower, gum Arabic, processed rubber, shrimps, and lead ingot.

    Economic and trade statistics released by the Apapa Area One Command of the Nigeria Customs Service (NCS) shows that 116,525 metric tonnes of non-oil commodities worth N129.9billion were exported through the Lagos Port complex between January and December last year.

    This compares to a total of 665, 010 metric tonnes of the various goods  worth N133 billion accounted for the previous year. This represented a shortfall of N33.1billion.

    Also exported were 4, 625,837 square feet of processed leather, 74,547 cases of dettol antiseptic, maggi crayfish, 29,062 cartons of biscuits, 97,100 bags of assorted bathroom slippers and 1,655,320 litres of ethyl alcohol.

    The command also in 2011 handled 3.4 million kilogrammes and 2.6 million sq metres of 24 other different non-oil commodities.

    Experts had attributed the increasing export profile to efforts of the government to check the excessive dependence on crude oil exports, which has over the years, remained the main stay of the economy.

     

  • FAAN set to boost revenue

    FAAN set to boost revenue

    Kaduna Airport ready in April

    The Federal Airports Authority of Nigeria (FAAN) is developing other income means to boost its non-aeronautical sources of revenue for the Murtala Muhammed International Airport (MMIA), Ikeja, Lagos.

    Its Regional Manager, Southwest, Mr Edward Olarerin, said this what airports worldwide do.

    He said the era when an airport authority depended on aeronautical sources of revenue was over. Major airports in Europe, America and Asia, he said, were looking at how to improve revenue beyond the collection of landing and parking fees, ground rent and other charges.

    He said a new directorate of cargo has been created in FAAN to work modalities to improve its revenue drive outside the traditional sources, which are described as aeronautical.

    He said: “In most countries, their revenue is from non-aeronautical, but our case is quite the opposite here. That is how we have developed, but now the ministry and  FAAN administration are going to generate a lot from retails.

    “We are developing our retails and advertising areas. Now we have very competent general managers in retail  and they  have the mandate to develop that area to challenge the aeronautical sources of revenue. Apart from that, the directorate of cargo has been established to improve earnings from cargo.”

    He spoke of plans to enhance the operational capacity of the Murtala Muhammed International Airport, Ikeja, Lagos. He said: “ The airport used to handle over1,500 passengers daily, but with the facility created, the airport can handle 6,000 passengers, that is about 10 wide bodied aircraft if not more.”

    Beside, the Kaduna Airport remodelling will be completed in April, General Manager, Corporate Communication, FAAN, Mr Yakubu Dati, has assured.

    In a statement, he said the contractor handling the project has completed 80 per cent of the job.

    Dati said the project is part of strategies in the Aviation Master Plan, which includes upgrade and development of dilapidated infrastructures, reformation of institutions, and the transformation of key airports into a network of domestic and international hubs.

    The airport will form a major hub with the Mallam Aminu Kano International Airport, Kano. It will help to boost the economy of the state and increase the Gross Domestic Product (GDP).

     

  • FIRS revenue hits N5tr

    The Federal Inland Revenue Service (FIRS) closed the 2012 financial year with collection of N5.007trillion; N1.806 trillion (36.07 per cent) of which came from non-oil taxes.

    A statement issued by Mr. Emmanuel Obeta of the Communications and Liaison Department at the weekend said this is an indication that FIRS has continued to record steady increases in the collection of the taxes. The statement recalled that the oil taxes contributed N3.201 trillion (63.93 per cent and was N3.070 trillion in 2011.

    FIRS noted that the money is more than the estimated budget of N3.635trillion for all its taxes. Compared with 2011, the all-taxes figure grew by N379.4 billion or 8.20 per cent on. FIRS collected N4.628 trillion in 2011. The contribution of non-oil taxes increased from N1.557 trillion or 33.65 in 2011 to N1.806 trillion or 36.07 per cent in 2012.

    The statement reads: “The N5.007 trillion is the highest cumulative tax collected in the history of the FIRS.

    “This performance reflects the FIRS’ unwavering commitment to its vision of making taxation the pivot of national development. It is noteworthy in this regard that all the non-oil components of the taxes collected by the Service maintained the rising trend seen in previous years.

    “Compared with the N715.4billion seen in 2011, Companies Income Tax (CIT) returned N847.5 billion in 2012. Value Added Tax (VAT) was N710.5billion against N659.15billion in 2011, while Education tax (EDT) recorded N188.43 billion against the N130.74 billion in 2011. National Information Technology Development Fund (NITDF) accounted for N9.13 billion against the N8.67 billion it returned in 2011. The sum of N51.59 billion was realised from the Personal Income Tax (PIT), Pre-Operational Levy (POL), Capital Gains Tax (CGT) and Stamp Duty (SD), all pooled together in the Federal Government’s Consolidated Revenue Fund account.

    “However, the total tax yield with the inclusion of Petroleum Profit Tax (PPT) for the year ended 2012 stood at N5, 007 trillion resulting in a landmark achievement when compared with the annual provisional budget of N3.635 trillion.

    “By implication, the Service surpassed the provisional annual budget with N1.372 trillion or 37.74 per cent more than the total realisation of tax revenue collection for 2011, which stood at N4.62 trillion.)”

  • ‘Revenue allocation  should be reviewed’

    ‘Revenue allocation should be reviewed’

    Akwa Ibom State Governor Godswill Akpabio spoke with reporters on the offshore/onshore controversy, lopsided federal structure and imperative of a new revenue allocation formula. Emmanuel Oladesu was there.

    What is responsible for the raging controvery over the onshore/offshore dichotomy?

    When we had the onshore and offshore problems in 2000 for about nine months, President Olusegun Obasanjo offered a remedial measure. N600million was given to Akwa-Ibom. That lasted for about nine months. The situation was corrected and Akwa-Ibom started to receive derivation revenue.

    Also, in September, 2000, and the records are available at the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC) and Ministry of Finance, my state also collected N3.7 billion. At that time, the state that collected the highest derivation was Delta. I think Delta collected N5 billion or more, Rivers came second, Bayelsa came third and Akwa Ibom came fourth. Later, Rivers used to come first, Delta second, Akwa-Ibom third and Beyelsa fourth. Later, Akwa Ibom came first, but it used to change, based on oil production and militancy.

    There is a dichotomy on revenue from oil. The onshore and offshore issue is still there. It has not been totally removed. The compromise position was that states are to be paid for oil wells located within 200 meters isoberg. They said they have agreed on 200 nautical miles; that was said in an interview to incense the North. Two hundred nautical miles on international waters, no African country has the capability to produce oil there. But what the man said in his interview was that they are paying derivation for 200 nautical miles, that is, deep on international waters. There is an element of falsehoodin order to cause violence. He knows the truth; he said it so that he can get support. I know Nigerians. If the totality of dichotomy is removed, Lagos will produce the highest quantity of oil because, Bonga oil field is located within the Lagos area. It is a deep sea oil, it can produce 800,000 barrels of oil a day. If the issue of dichotomy is removed today and they say there is no longer dichotomy, the state that might be the highest oil-producing state in Nigeria is Lagos. Go and look at the amount that they pay derivation on. It is not commensurate with the oil sourced because the rest of oil wells are beyond 200 metres isoberg. The governors are saying that exploration is affecting aquatic life, it impacts on the sea, on the livelihood of the people on the shore because life there can never be the same.

    How did militancy affect it?

    When the activities of militants reduced, Shell could tap a lot of oil. Then, the production in the Niger Delta would pick. So, what they have done now is that they are calculating derivation on monthly basis because sometimes, Mobil can have oil spill and you cannot but suspend production. So, for that month, our own resources will have to dwindle. Then, it may go down because you have a major spill and that, of course, will eventually affect the final derivation. In that wise, for that month, we might come to number four or number three.

    Generally speaking, we have, at least, four major states that collect their derivation levies; Delta State, River State, Bayelsa State, and Akwa Ibom. Now, Edo and Ondo have also joined.

    The money being so much does not translates to development. It is the vision, it is the dedication, it is the sincerity, it is the commitment, it is the totality of your being.

    How are you fighting unemployment in your state?

    I was at a Council of State meeting in 2011 when a deputy governor was telling us about Borno State economy. He told us that his governor left behind N64 billion. But if you look at Borno and how much it gets in a month, for Borno to have saved up to N64 billion, and the new governor met N64 billion, the press should have asked questions. What did he leave behind? He left behind Boko Haran and N64 billion in the bank. That is why sometimes, they say if you don’t give to God, you will give to devil. If you don’t spend the money for the benefit of your people, you will use the money to cure the problems you have created.

    The reaction to the neglect of the poor, pauperized and the weak, to the neglect of human capacity building, would come. In an attempt to say you are not corrupt, you keep billions in the bank in order to attract interest. And your business is booming while the society is dying and you are now saying, if the EFFC comes, you can account for the money. Is that governance?

    Why do you often describe yourself as an angry governor?

    I served as commissioner for five years and I knew that where I met the state is not where it ought to have been. I used my money to repair this Calabar-Usi Road when I was commissioner. Obansajo was to pay a visit to the state. I went and brought a heap of sand to fill potholes along the road. So, I went to the governor at that time. I said sir, let’s do something about the road. He said, get out, is it my father’s road? Let him (Obasanjo) come and see how he has been neglecting Akwa Ibom. I said sir, but the visitors that are coming, they would think this government is not performing. He said, is it my business to fix the federal roads? Will you get out of this place? So, I was a man who over advised. If you over advised government, you become an opposition, despite your good intention.

    An international award was given to me in Kenya and a television correspondent who came to interview with and asked: ‘what was your motivating factor for all you have achieved in your state which won you the award? I was stunned because that was not the question I expected he would ask. I said anger. What motivated me was anger. Do you know that after my speech, they set up a panel of discussants on Kenya Television to discuss ‘the anger of the Akwa Ibom governor? And the conclusion was, let Kenya produce many angry politicians who can on the spur of anger bring monumental and phenomenal development to the country. If you are not angry with the state of insecurity, underdevelopment, poverty in the society, lack of infrastructure, and lack of employment, then, you have no business in governance.

    Can you say you have honestly fulfilled your campaign promises?

    Obasanjo came here and described the three segments of Akwa Ibom society, those who support Godswill Akpabio, those who are neither here nor there and those who are in total opposition to Godswill Akpabio. Those who are in support of Godswill Akpabio said ah, the governor is performing excellently. Those who are neither here nor there say the man is trying and those who are in opposition say yes, he has done well, but he has money. My prayer is that anybody that is coming to Akwa Ibom should have money and should also do well. The fact is that what Akwa Ibom is receiving is 0.00001 per cent of what comes from the Federation Account monthly. On a monthly basis, what I use is 0.00001 per cent of the Federation Account.

    All the states in the Federation collect 24 per cent of Federal Revenue. What the states draw collectively is 24 per cent, the local governments collect 15 per cent, the Federal Government takes 52 per cent, the collectible fund is about 3 per cent, nine per cent goes to the FCT and another one per cent is Intervention Fund. If the Federal Government has agreed to increase derivation and Akwa Ibom is able to get one per cent, I would have transformed Akwa Ibom to a small Dubai and you wouldn’t need to go abroad again.

     

  • Inland Revenue tightens noose on tax evaders

    THE Federal Inland Revenue

    Service (FIRS) will no longer

    treat lightly the possession of fake tax clearance certificates, its Director, Large Tax Department (non-oil), Mr Innocent Ohagwa has said.

    Those who possess fake tax papers will be prosecuted in accordance with constitutional provision, he said.

    Speaking at a television programme, Ohagwa said FIRS would ensure that anybody caught with fake tax papers is jailed to deter others.

    He said the need to apply the law became necessary to reduce tax evasion, among other vices.

    FIRS’audit, he said, is based on discovered risks which triggered from the public, adding that the agency is determined to have a sound and effective tax management programme.

    Ohagwa urged people to pay their taxes as when due, arguing that a company has committed a criminal offence by evading tax.

    A situation whereby firms have to be taxed for evading tax is not good enough for the system, he added.

    According to him, Third-Party Confirmation, Tax Identification Number (TIN), among other instruments, will be used to reduce non-compliance with the the tax payment regime.

    He said through TIN and third-party confirmation, FIRS would know whether companies made necessary returns to the banks.

    If the banks’statements show that mandatory returns are not made to them promptly, such fraudulent practices would be exposed, he said.

    FIRS, Ohagwa said, is adopting these measures to check the antics of tax evaders, arguing that it would be difficult for erring firms to escape under the new dispensation.

    He added that it is no longer business as usual for firms that move from one location to another to evade tax.

    On dead firms, he said rules of cessation would be applied for such organisations to stop them from paying taxes.

    He said: “If a company is dormant, you cannot say it is active. If a firm is a growing concern, you cannot say it is dormant. We have our strategies of knowing all these.”

    He said the FIRS feels for companies that are finding it difficult to fulfil their tax obligations, based on its findings. This, he said, is dependent on what the financial statements of such companies or institutions are.

    Former President, Chartered Institute of Taxation of Nigeria (CITN) Mr Sunday Adigun said tax evasion and its associated vices are criminal offence, adding that they pose dangers to the government’s ability to generate revenues.

    Adigun said taxes play pivotal roles in the development of the economy, noting that the developed economies handle tax issues with all seriousness.

    He said efforts must be made to plug the loopholes people exploit to evade tax. The former CITN’s boss said people who evade taxes or work as accomplices of tax evaders are by law regarded as criminals that must be punished.

    Tax officials, he said, must be professional enough to discharge their duties well, arguing that errors inherent in the collection and remittance of tax would be minimised when this happens.

    This, he said, is why only ‘fit and proper’ person must be allowed to practice taxation to promote professionalism and a nation’s economic growth.

     

  • Clark: pay oil revenue to communities

    Clark: pay oil revenue to communities

    Southsouth leader and former Minister of Information Chief Edwin Clark has called for a direct allocation of the 13 per cent derivation fund to oil communities.

    The Ijaw leader said the demand became imperative because allocation of funds through states since the adoption of the present sharing formula has not benefited the host communities.

    He said this when leaders of the oil producing communities visited him yesterday.

    Clark said over N7.282 trillion released to states in the past 13 years have not benefited the oil-bearing communities.

    He insisted that only a direct allocation of oil fund through an administrative committee could guarantee rapid transformation of the deprived and neglected oil producing communities.

    The delegation was led by Chief Wellington Okirika and comprised representatives of Ondo, Edo, Delta, Bayelsa, Rivers and Akwa Ibom communities.

    Clark said: “The Federal Government should stop paying the 13 per cent derivation fund through the states.

    “The provision in the 1999 Constitution is clear. Thirteen per cent derivation fund stands on its own. It is not part of any consolidated revenue of any tier of government, nor part of any state joint local government account. Thirteen per cent derivation fund should then be treated on its own.

    “The Federal Government should pay 13 per cent fund by administrative arrangement, as in the case of fund from fuel subsidy being managed through the committee headed by Dr. Christopher Kolade.”

    He further asserted that Section 162 (2) of the 1999 Constitution is specific about the owners of 13 derivation fund.

    “The fund is for oil producing communities who are the source of derivation as the basis of derivation principle in the 1999 Constitution.”

    He advised the Federal Government to constitute a National Derivation Committee on 13 per cent fund with State Implementation Committees as the best option to solve the problem.

  • AGF blames MDAs for loss of revenue

    AGF blames MDAs for loss of revenue

    • ‘Expenditure to end December 31’ 

    THE Accountant-General of the Federation (AGF) Mr Jona Otunla has accused Ministries, Departments and Agencies (MDAs) of loss of revenue.

    This is contained in a circular to administrative and accounting heads in government in November 2012.

    In the circular, the AGF stated that “MDAs engage in acts that result into loss of government revenue.”

    Otunla has read the riot act to the MDAs. He said: “Spending of government revenue without appropriation is a violation of the Appropriation Act in line with Treasury Circulars TRY/AI&BI/2009 of January 19, 2009 and no deductions should be made from any revenue collected.”

    On the gross amount received, he warned that MDAs “must on all occasions be accounted for in full in line with FR 223. Therefore, all revenue collected including interest earned on bank account should be receipted properly and brought into the account on or before the close of work on December 31, 2012.”

    Otunla directed revenue collectors to ensure that their collections are promptly paid into the Consolidated Revenue Fund and accounted for by showing evidence of payment duly supported by Treasury Form 15A, and submitted to the Federal Sub-Treasury in Abuja or the appropriate Federal Pay Office before close of works on December 31, 2012.

    For the MDA on Treasury Single Accounts (TSA), the Accountant-General of the Federation insisted that “their revenue should be accounted for based on the requirements of Treasury Circular TRY A6 & B6/2012 OAGF/CAD/026/VI/I of July 4, 2012 which provided for the procedures for the collection and accounting for independent revenue under TSA.”

    In the case of Nigerian Foreign Missions, the AGF directed that “the independent revenue generated should be paid into the Independent Revenue Account No. 400939134 at J.P Morgan Chase Bank, New York, Code: CHASUS 33 and the evidence of the payment should be e-mailed to the Treasury (oagfnigeria@yahoo.com) latest by 7:00 p.m. Nigerian time on Monday, January 7, 2013.”

    In addition, the AGF expects outstanding advances to be retired on or before December 31, 2012 as failure to do so would lead to sanctions.

    While MDAs are expected to comply with the requirements of the previous circulars on the need to promptly retire all outstanding advances, the AGF, specifically, cautioned accounting officers to note “that it is their responsibility to ensure that advances granted to officers are recovered.”

    Also, AGF said government’s spending would closed on December 31, 2012.

    In a circular to administrative and accounting heads of Ministries, Departments and Agencies (MDAs) and the Presidency, he said: “All the cash books should be balanced latest by the close of work on Friday, December 28, 2012.”

    Thereafter treasury officers, “shall be deployed to ministries, extra-ministerial offices, agencies and other arms of government on Monday,December 31, 2012 by noon to rule-off all Cash Books and extract the Cash Book balances.”

    This is the first time in many years that the AGF will rule-off cash books and extract the cash book balances from MDAs on December 31. In the past, this action was carried out between December 20 and 24.

    A development that had seen many civil servants spending money after the books had been closed.

    The circular was issued to the chief of staff to the president, the deputy chief of staff, office of the vice president, all ministers, the Secretary to the Government of the Federation, the Head of civil service of the federation, special advisers,service chiefs/ Inspector-General of Police, the governor of the Central Bank of Nigeria, the chairman, federal civil service commission, federal permanent secretaries, the clerk of the National Assembly, the secretary, National Judicial Commission, the chief registrar, Supreme Court of Nigeria, the Auditor-General for the Federation, directors-General/chief executives of extra-ministerial departments and agencies, directors of finance and accounts, heads of accounts divisions, zonal coordinators (OAGF), the sub-treasury of the federation and heads of internal audit units and federal pay officers.

    The AGF directed the MDAs that entries into the Departmental Vote Expenditure Allocation (DVEA) books, ledgers, mandate summary registers and imprest accounts should be concluded on Friday, December 28, while all MDAs on GIFMIS/TSA would have their accounts closed online real time by the Treasury.

    Thus, unspent balances in the Recurrent Expenditure Cash Books at the financial year“must be paid back to the Consolidated Revenue Fund Account.

     

     

     

     

     

     

     

  • Yakowa urges council chiefs to boost revenue

    Kaduna State Governor Patrick Ibrahim Yakowa yesterday urged newly elected local government chairmen to generate enough revenue to fund their projects.

    The governor noted that this would reduce the dependence on statutory allocation.

    Yakowa spoke at an orientation for the newly elected council members and their management workers.

    He advised them to complete ongoing projects before starting new ones.

    The governor said his administration was examining alternative sources of funds, including the collection of taxes to boost its revenue.

    According to him, with the reforms taking place in the local governments, they should generate enough revenue to defray some of their major expenses, including salaries.

    Yakowa congratulated the new council chiefs for their success at the poll and the orderly conduct of the election.

    He said the government and the people were working together to restore confidence in the state.

    Yakowa said: “The local government, as I have often said, is the closest tier of government to the people. This underscores the need for quality leadership to ensure that citizens enjoy the dividends of democracy.

    “I, therefore, challenge all elected officials to ensure that they initiate programmes that will impact positively on the people. All programmes and projects embarked upon by the previous administration should be carefully studied and completed before new ones are conceived. You should also take advantage of the ongoing budget process to ensure that your programmes are well-articulated in the 2013 proposals.”