Work Hard To Earn Your Pay – RMAFC Tells Revenue Agencies

  • Rejects ‘FGN Priority Projects’ financing by RGAs

BY BLESSING NKEREUWEM – The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) says government agencies charged with revenue generation into the Federation account should no longer enjoy freebies to avoid laxity.

Accordingly, the Commission said going forward, paying the cost of collection to such agencies should be performance-based in order to not only increase revenue generation and remittances into the government coffers but also offer incentives for outstanding performance.

Additionally, the RMAFC is insisting that for transparency and accountability purpose, the practice whereby some Revenue-Generating Agencies (RGAs) finance ‘FGN Priority Projects’ should stop forthwith.

Chairman of the Commission, Mr Mohammed Bello Shehu, who spoke on paying cost of collection to the RGAs from the Federation Account, said the RGAs must adopt new strategies to enhance their revenue generation as well as remittances profiles.

“We strongly advocate that payment of the cost of collection to RGAs should be tied to revenue performance. In other words, each RGA should receive a cost of collection commensurate with the revenue generated against its revenue target, as provided for in the Appropriation Act”, Shehu said.

However, highlighting the respective agencies’ performance in terms of their contributions to the Federation Account, the Commission boss said in a signed statement that some of the RGAs deserves commendation for meeting their monthly revenue targets

He said the Federal Inland Revenue Service (FIRS) received over N115,228,307,052.31 and N3,470,427,738.60 as the cost of collection on Petroleum Profits Tax (PPT)/Corporate Income Tax (CIT)

This is even as the Service realised over N86,760,693,465.01 from the Electronic Money Transfer Levy (EMTL); about N85,664,470,191.68 from Value Added Tax (VAT); and N6,758,915,398.08 as cancellation of the tax credit from VAT in July 2023.

On its part, the Nigerian Customs Service (NCS) got the sum, of N85,177,449,804.12 as the cost of collection, while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) received the sum of N62,758,464,676.03.

Equally, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) got a refund of N82,918,505,581.80 and N25,442,219,048.35 collected by the NUPRC as the penalty for gas flaring.

Importantly, the Commission Chairman said there was a significant increase in VAT collection and EMTL during the second half of 2023 compared to the first half of the year.

He commended the agencies for meeting their monthly revenue targets, specifically noted that the FIRS achieved 206 percent; 149 percent; and 105 percent in June, July, and August 2023 respectively as opposed to its average performance of 66 percent; 57 percent; and 60 percent in February, April, and October 2023.

Similarly, the NUPRC surpassed its monthly revenue target in September, October, and November 2023 as opposed to its average performance in other months. The Nigerian Customs Service equally exceeded its monthly revenue target in August and October 2023 while performing average in other months

Also, the Ministry of Mines & Steel Development exceeded its monthly revenue targets in almost all months except April, August, and September 2023, where it achieved 98 percent; 97 percent; and 96 percent; respectively, recording a whopping 496 percent in July 2023.

Shehu further said; “Given its superlative performance, the government should emphasize the solid minerals sector to improve revenue generation therefrom and further achieve economic diversification”.

On non-remittances of income into the Federation Account, RMAFC frowned at the practice of financing ‘FGN Priority Projects’ by some Revenue Generating Agencies. describing such arrangement as harmful to the nation’s economic development and growth.

Specifically, the Commission boss insisted that all NNPCL JV PPT should be paid to the Federation Account through FIRS, cautioning that such taxes should not be retained by the company in the name of financing FGN priority projects.

Hear him; “No further deduction should be made by FIRS in the name of ‘priority projects’ to avoid a repeat of the situation under NNPC where large chunks of funds were deducted as first-line charges under a similar name, i.e., ‘NNPC priority projects.’ NNPCL should be made to promptly remit all revenues due to the Federation Account as and when due, in compliance with the provisions of the PIA, 2021”.

He said Nigeria’s ailing economy demands practical measures to put it back on sustainable development track, adding that in providing periodic reviews on the Federation Account, the Commission would not relent in its efforts to block revenue leakages as well as encourage improved revenue generation as part of its mandate and statutory as stipulated in the amended 1999 constitution of the Federal Republic of Nigeria.

For him, the Commission is fully backing the ‘Renewed Hope Agenda’ of President Bola Tinubu as contained in the Report of the Policy Advisory Council set up to support the delivery of sustainable and inclusive economic growth by the administration.

Similar Posts

Leave a Reply