The Nation Newspaper

Tag: revenue

  • Raise revenue through tax, IMF urges Fed Govt

    Raise revenue through tax, IMF urges Fed Govt

    The International Monetary Fund (IMF) has advised the Federal Government to build up revenue mobilisation through tax capacity building for the country to get out of rcession and meet the Sustainable Development Goals (SDGs) of the United Nations.

    Its Director, Fiscal Affairs Department, Vitor Gaspar, who spoke at a press briefing on the IMF Fiscal Monitor report in Washington yesterday, said the debt rise in the country is characteristic of oil-producing economies.

    He said: “Message number one is that if you look at the global debt and deficit landscape, you’ll see that the countries that have the highest public sector deficit are oil exporters,” he said.

    “Nigeria is in debt group as a country that was very much hit by very low oil prices. That is a general message because it applies to oil exporters in general; the group of oil exporters have shared some characteristics.

    “The most important point in my view of general relevance is that for countries in sub-Saharan Africa to deliver on SDGs, for most of them, the key challenge is the building up of revenue mobilisation capacity through tax capacity building; that’s a key priority.

    “These countries must improve their capacities to raise revenue, and why is that so? Because there is such need in term of public infrastructure, there is such need in terms of public education, there is such need in terms of health.

    “For these groups of countries, public finance, fiscal policy is part of the overall development strategy, and in that, tax capacity is a fundamental cornerstone.

    The global lender warned that the economic situation in the country was creating economic difficulty for its neighbours, being a very important of economy in the West African sub-region.

    Its Head, Fiscal Policy and Surveillance Division, IMF Fiscal Affairs Department, Catherine Pattillo, said Nigeria’s challenges were hurting its neighbours.

    Pattillo said: “The slump in oil production and slow growth has created challenges for the country (Nigeria), but one statistic that is quite striking to me is that the debt profile is weakening and interest payment account for more than 45 per cent of Federal Government revenue.

    “On fiscal side, the important priority should be in safeguarding fiscal sustainability — which means, importantly, to increase non-oil revenues — and implementing an independent price-setting mechanism that minimises fuel subsidy.

    “So, these are two priorities, while also, of course, improving public service delivery so that citizens can see the benefits of good governance and services financed by the government.

    “As you know, Nigeria is a very important economy in the region and its success has positive spill over for the region, particularly in West Africa and its challenges then creates difficulties for its neighbours.”

  • ‘More revenue expected from mining sector’

    With the approval of the mining sector roadmap by the Federal Executive Council (FEC) and discovery of mineral resources in various parts of the country, the Federal Government is expected to make more revenue from the sector, the National President, Miners Association of Nigeria (MAN), Sani  Shehu, has said.

    He told The Nation that the roadmap would state the government’s  regulations in the sector. They would guide operators  in international best practices, including ethics, health, environment, and climatic issues. In all, they would guide operators and regulators and on how to move the sector forward.

    But the mining body advised the government to stop further importation of raw materials that could be sourced locally, adding that the country has adequate raw materials for the local industries. When these materials are used, they would create employment and sustainable revenue generation for the government.

    Shehu, who spoke on phone, said with the discovery of more mineral resources, there would be huge increase in revenue for the government, and development in the states where minings are taking place.

    The mineral resources would attract foreign earnings, which would go a long way in assisting the economy to withstand the pressure on it. Therefore, the earlier the roadmap was implemented and minings kicked off, the better for the economy, he added.

    He said: “On the whole, we hope that the mining industry considering the development that is coming up will be in a position to assist the government in terms of revenue generation and also for massive employment for Nigerians.

    “We are expecting the implementation of the provisions of the road map. We hope additional activities would be created in the sector and with the discovery of mineral resources many parts of the country that would encourage foreign investors to come and invest in the country.”

    He urged the government to resolve the issues of licence renewal, collection of revenue from miners, multiple taxation, adding that it is only the ministry that can collect royalty and other taxes and levies from the sector.

    There is also inter-agency rivalry between some of these agencies, such as environmental levies. He said regulatory issues had also been a very big challenge, adding the association does not have any statutory power to handle it. He urged the government to streamline the regulatory agencies that oversee the mining sector.

    He said the association would continue to support the government efforts to grow the sector as well as re-orientate its members in harnessing the benefits accruable in the industry.

    He said: “We intend to grow ourselves and to grow the industry, we want to create activities in the mining sector and we want to go mechanised,” adding that manual mining will not take the industry anywhere.

    ‘’We also facilitate international visits for our members to South Africa, China, Canada and other parts of the world in search of improved ways of mining as well as organising visits with foreign investors.

    ‘’The body has been able to solve some community issues and is actively sensitising people on the need to mine in line with international best practices, among others.

  • ‘More revenue expected from mining sector’

    With the approval of the mining sector roadmap by the Federal Executive Council (FEC) and discovery of mineral resources in various parts of the country, the Federal Government is expected to make more revenue from the sector, the National President, Miners Association of Nigeria (MAN), Sani  Shehu, has said.

    He told The Nation that the roadmap would state the government’s  regulations in the sector. They would guide operators  in international best practices, including ethics, health, environment, and climatic issues. In all, they would guide operators and regulators and on how to move the sector forward.

    But the mining body advised the government to stop further importation of raw materials that could be sourced locally, adding that the country has adequate raw materials for the local industries. When these materials are used, they would create employment and sustainable revenue generation for the government.

    Shehu, who spoke on phone, said with the discovery of more mineral resources, there would be huge increase in revenue for the government, and development in the states where minings are taking place.

    The mineral resources would attract foreign earnings, which would go a long way in assisting the economy to withstand the pressure on it. Therefore, the earlier the roadmap was implemented and minings kicked off, the better for the economy, he added.

    He said: “On the whole, we hope that the mining industry considering the development that is coming up will be in a position to assist the government in terms of revenue generation and also for massive employment for Nigerians.

    “We are expecting the implementation of the provisions of the road map. We hope additional activities would be created in the sector and with the discovery of mineral resources many parts of the country that would encourage foreign investors to come and invest in the country.”

    He urged the government to resolve the issues of licence renewal, collection of revenue from miners, multiple taxation, adding that it is only the ministry that can collect royalty and other taxes and levies from the sector.

    There is also inter-agency rivalry between some of these agencies, such as environmental levies. He said regulatory issues had also been a very big challenge, adding the association does not have any statutory power to handle it. He urged the government to streamline the regulatory agencies that oversee the mining sector.

    He said the association would continue to support the government efforts to grow the sector as well as re-orientate its members in harnessing the benefits accruable in the industry.

    He said: “We intend to grow ourselves and to grow the industry, we want to create activities in the mining sector and we want to go mechanised,” adding that manual mining will not take the industry anywhere.

    ‘’We also facilitate international visits for our members to South Africa, China, Canada and other parts of the world in search of improved ways of mining as well as organising visits with foreign investors.

    ‘’The body has been able to solve some community issues and is actively sensitising people on the need to mine in line with international best practices, among others.

  • ‘Nigeria lost $30b oil revenue in two years’

    ‘Nigeria lost $30b oil revenue in two years’

    Nigeria lost $30 billion in oil revenue  between 2014 and 2015, the Executive Director, Nigerian Export Promotion Council (NEPC), Olusegun Awolowo, has said.

    He spoke in Abuja yesterday at the batch three graduation ceremony of 38 Zero to Export Capacity Building Programme beneficiaries.

    He said: “The essence of our gathering today underscores the crucial role that non-oil export sector is expected to play in the present administration’s efforts at diversifying the Nigerian economy away from over reliance on oil as its main stay, especially now that the continuous fall in prices of oil has thrown the world into recession.

    “Recent developments on global market have triggered a wake-up call on the need for us to accelerate the diversification of our economy, moving away from an over dependence on oil as our main source of revenue.

    “Since reaching a peak in June 2014, the price of crude oil has fallen roughly by 60 per cent. Nigeria lost $30billion in oil revenue between 2014 and 2015.

    “NEPC will continue to encourage Nigerians to take advantage of the diversification process of the Federal Government through the promotion of non oil export activities.”

    Awolowo said the NEPC would continue to create opportunities for Nigerians to imbibe the culture of exportation through capacity building and training programmes.

    According to him, the non-oil export sector is expected to play a crucial role in the present administration’s effort to diversify the economy away from over reliance on oil as its main stay.

    “As the Federal Government of Nigeria’s apex agency for the promotion of non-oil exports and diversification of the economy, the NEPC considers it critical to spearhead the development of capacity of individuals and businesses for export.

    “We are therefore engaging in strategic partnerships with institutions in government and the private sector in Nigeria and abroad in that regard. A demonstration of such partnerships is the Zero Export Plus Programme which is a partnership between NEPC, Fidelity Bank and the Lagos Business School.

    “That programme along with the zero to Export Programme which you have just completed will go a long way to address constraints of the export sector which include inadequate skills and poor access to finance,” he added.

  • Bayelsa local govt seeks revenue from agric

    The economy is on recession. Revenue from the Federal Government has dropped drastically and responsible government at all levels are wearing their thinking caps to raise money internally to run their affairs.

    Sagbama, the Local Government Area of the Bayelsa State Governor, Mr. Seriake Dickson, is not left out. The Caretaker Committee Chairman of the council, Mr. Michael Magbisa, recently reeled out its plans to improve the economy of the council.

    Magbisa said diversification is the pill for economic recovery and agriculture is the future. The chairman gathered stakeholders of the council at the Secretariat to brief them of his plans and his achievements since he was appointed to administer the council by Dickson.

    Dickson’s Deputy Chief of Staff, Mrs. Ebizi Brown, Political Adviser, Fynman Wilson and other notable leaders attended the event. Briefing them, Magbisa said all the plans to engage various sub-sectors of agriculture especially poultry and farming had been concluded in the council.

    He said: “You are all aware of the economic recession facing us globally, this has made a lot nations to diversify their economy.

    “We, at Sagbama plans to diversify into agriculture, hence we have initiated plans to venture into poultry farming and fishing. The council plans to engage about 100 youths to be trained in this areas not just for an empowerment for them, but also as a source of revenue generation for the council”.

    Reflecting on the administration of the council, he said: “Although the journey has not been so smooth but because of the support given me by most of you I have been able to overcome some of the challenges we faced.

    “Despite the downturn in the economy and all the problems facing us as a people we have a success stories to tell and achievement to show case today”.

    He, however, made a passionate appeal to his stakeholders. He said: “It is my appeal for all of us to encourage and give all our support to our own father and leader, the executive governor of our beloved state Hon. Henry Seriake Dickson who is also from this wonderful council.

    “It was through his magnanimity I am able to be here as a caretaker chairman of this council, that also include most of you that are present her today. I want to specifically use this medium to appeal to all of us, his kinsmen to rally round the Governor especially now the federal allocation to the state gas dropped drastically.

    “Though we are facing the same financial challenges at the council, but because of our zeal for quality service and delivery of political dividends to our people. We have been able to not only spend the meager allocations that come to the council judiciously and prudently, we have recorded successes”.

    On some of his achievements, the chairman said following the state government’s directive, workers’ verification was carried out and payroll frauds such as impersonation, illegal appointments, falsification of documents and over-aged declarations were discovered.

    He said electricity was restored to the council’s secretariat. He said payment of workers including primary school teachers were still ongoing. He said the council was also able to open some factories to drive local production of essential goods.

    He said: “In this very short time of our stay, we have been able to put up aa table and sachet water factory in Sagbama. We also renovated the chairman’s lodge and governor’s lodge. We have also given the council secretariat a befitting look and the paint used in painting the secretariat building was actually produced by Sagbama Local Government Council.

    “We have set up a bakery for the production of bread for our people and we intend to create employment opportunities for our teeming youths, so as to reduce crime and other vices affecting us.

    “We have also relocated all commercial vehicles operating in Sagbama Town to the council motor park. This move is to create an enabling environment for passengers and to also check the insecurity challenges we are facing before I assumed office.

    “Very soon, security cameras will be installed in strategic location to monitor the activities of unscrupulous and questionable characters. We have also refurbished speedboats for our marine police to enhance security on our water ways. The various security apparatus have also been strengthened.

    “We have also put in place boreholes to provide water for our people in Tungbabiri.

    That project is ongoing and very soon the Tungbabiri axis of Sagbama shall have clean and portable drinking water from that project”.

  • NNPC, FIRS, CBN to collaborate on revenue generation

    NNPC, FIRS, CBN to collaborate on revenue generation

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Kacalla Baru has  expressed the readiness of the corporation to continue to collaborate with the Federal Inland Revenue (FIRS), Central Bank of Nigeria (CBN)  and other government agencies to generate revenue for Federal Government.

    Baru suggested the setting up of a committee between the NNPC and FIRS to update the Corporation’s tax obligation up to 2015 assuring that all its joint venture partners would align themselves in order to ensure that the right taxes are paid. NNPC Group General Manager, Group Public Affairs Division, GarbaDeen Muhammad made this known in a statement yesterday.

    The FIRS Chairman,  Mr. Tunde Fowler,   praised the NNPC for subjecting itself to tax audit as a good responsible corporate citizen.

    He gave this commendation when he received the GMD and his management team at the FIRS Revenue House in Abuja.

    Fowler thanked the NNPC for the cooperation it has extended to FIRS on tax matters over the years stressing that the two organizations are children of the same father committed to generating revenue for the Federal Government.

  • NNPC revenue target down by 37.64 per cent

    NNPC revenue target down by 37.64 per cent

    The Nigerian National Petroleum Corporation (NNPC) failed to make its projected estimates in May and June.

    According to its monthly reports obtained by our correspondent, the oil giant realised N142.53 billion in May and N118.39 billion in June, representing a loss of 45.32 per cent of the projected income for May and 37.64 per cent loss for June.

    The June 2016 Financial and Operation Report noted that operating expenditure for the same periods were N142.26 billion and N144.90 billion which represent 52.63% and 53.61% of budget plan for the two months.

    The report said: “A trading surplus of N0.27 billion and deficits of N26.51 billion were recorded for the months of May and June 2016 respectively. The reported trading surplus reported in May 2016 was as a result of increase in cash flow due to increase in pump price of PMS. The upward review resulted to a trading surplus of N0.27 billion and not ‘net profit’ because there are other expenses that ordinarily should have been netted off.

    “The deficit in the month of June 2016 was majorly due to decrease in revenue generation as a result of decline in PPMC petroleum products sales by 13.30% or N14.9 billion and increase in products distribution costs. Also June 2016 operations witnessed the major impact of incessant vandalism, during the month more than 261 vandalized points were recorded.

    “In NPDC a substantial portion of estimated crude oil sales for the month of over N20.0 billion could not be realised due to Force Majeure declared by SPDC as a result of vandalised 48-inch Forcados export line. In addition pension intervention by CHQ to bridge the funding gap as well as the one-off gratuity payment affected the performance.”

  • Tin-Can Island Customs revenue dips by N129.5m

    The Tin-Can Island Customs Command II, formerly known as Lilypond Command, Ijora yesterday said it recorded N531,814,240 revenue from various sources in July.

    It said the July revenue was N129, 516 million lower than the N661,330, 604 recorded in June.

    The command attributed the decline to the low volume of activities at the terminal occasioned by low level of importation.

    The command’s performance index is contained in a statement made available to the News Agency of Nigeria (NAN) in Lagos. It quoted the command‘s Controller, Alhaji Abdul-Kadir Dalhat, as saying that the command was devising practical ways of ensuring improved revenue profile in spite of challenges with importation.

    One of the measures, according to Dalhat, is the blockage of revenue loopholes to ensure all monies due to government were remitted to it.

    NAN reports that the command had, recently, announced N1.57billion revenue for May 2016.

  • Fayemi, metal exporters team up to grow non-oil revenue

    Fayemi, metal exporters team up to grow non-oil revenue

    The Ministry of Solid Minerals Development and the Association of Metal Exporters of Nigeria (AMEN) have reached an agreement to develop the potential of the solid minerals sector in line with the economic diversification programme of the government.

    The leadership of AMEN paid a courtesy visit to the Ministry of Solid Minerals Development during which the two parties committed to working together to develop the indigenous solid minerals sector and reposition it as a major foreign exchange earner for the country. Minister of Solid Minerals Development, Dr. Kayode Fayemi, and the Minister of State for Solid Minerals Development, Hon Bawa Bwari, received the executive members of AMEN led by its President, Seun Olatunji.

    Other members of AMEN at the meeting included vice president, Mr. Bamidele Ayemibo, and executive member, Mecha Udomecha.

    Fayemi said the government was committed to developing the solid minerals sector in a way that ensures that Nigerians benefited fairly from the natural endowments by participating in the operations, while simultaneously developing the potential of the sector as a major non-oil revenue earner.

    He said the Ministry had engaged in far-reaching consultations as part of its commitment to pursue an inclusive approach that carries all stakeholders along, noting that there is need for all Nigerians to join hands with government to successfully diversify the economy.

    Fayemi said the government was not unaware of the illicit export of Nigeria’s valuable solid minerals without appropriate revenue accrual to the Federal Government, decrying the connivance between Nigerians and foreigners to swindle Nigeria of her revenues.

    He said the Ministry would work with Nigerian Customs Service, Standards Organisation of Nigeria (SON), Nigerian Port Authority (NPA) and other agencies to create an efficient synergy that benefits stakeholders.

    He noted that the most profitable way to approach the sector is through value addition, such as solid minerals beneficiation and crushing, assuring that government would provide the facilities to develop the value-chain in the sector.

    Fayemi pointed out that the Ministry has been working with international partners to enshrine global best practices in the sector citing the partnership with international inspection companies like SGS to manage the highly sophisticated NGSA Laboratory in Kaduna State as well as SGS establishing a testing laboratory in Lagos State.

    Fayemi commended the registered metal exporters for their patriotism and commitment to the development of the solid minerals exports.

    Bwari urged Nigerian companies to look beyond rudimentary exploitation to development of the full value-chain of the sector, citing China’s development as a country.

    He also commended the metal exporters and enjoined them to always bring valuable information to the Ministry as this is vital to the growth of the sector.

    Olatunji commended the purposeful leadership of Fayemi and expressed the readiness of the association to support the government in its diversification programme.

    He pointed out that members of his association were responsible for a large chunk of the $1.742 billion repatriated as export proceeds between 2010 and 2015 as confirmed by the Central Bank of Nigeria (CBN), stressing that AMEN’s members were responsible for more than 50 per cent of the metallic solid minerals exports from Nigeria especially Lead, Zinc, Copper and Manganese.

  • Egbe Idimu LCDA to adopt Revenue Tracking System

    The Sole Administrator Egbe-Idimu  LCDA Hon. Adedoyin Salami has advocated the tracking system in order to attain the revenue target of the Local Council Development Area.

    Speaking during the stakeholders meeting on internally Generated Revenue for the Council, he said every revenue officer must be made to man certain section of the Revenue item.  He reasoned that each point will be monitored by equally competent officers through internal mechanism , that is designed to trace revenue items and officers responsible for generating them Each officer assigned to a point will deliver on their target. They are expected to comb the areas for all revenue items and collect them.

    Salami said it is obvious that the only option  available for Local Government is to embark on aggressive internally generated drive.The allocation coming from the federation account has significantly reduced to an embarrassing level.

    He appealed to his colleagues not to interfere in the revenue drive, stressing that Government is determined to use the money Generated to solve the immediate needs of the Council, such as Culverts, refuse collections etc.

    The Head Of Administration Mrs Morenikeji Okwuonu stated that the Council was ready to carry out the instruction of  His Excellency, the Governor of Lagos state. All contractual revenue must revert back to the Local Government. She charged the Council staff to brace up in order to justify the confidence reposed in them by His Excellency the Governor of Lagos State on their capability to improve the LGs’ lGRs.

    The Council Treasurer Mrs Aguda Akoro assured the Members of staff that  any Section that  exceeded its target would be rewarded accordingly.