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FIRS Generated N4.03tn in 2017 – Fowler

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FIRS
  • FIRS Generated N4.03tn in 2017 – Fowler

The Federal Inland Revenue Service announced on Monday that it collected a total of N4.03tn in the 2017 fiscal period.

The collection, according to a statement issued by the agency, represents 82.38 per cent of the government’s target of N4.89tn for the year.

The revenue of N4.03tn is, however, N720bn more than the 2016 total collection figure of N3.3tn.

An analysis of the collection performance indicated that taxes from non-oil sources accounted for 63 per cent, while oil tax accounted for 37 per cent of the total collection.

Stamp Duty recorded the most increase in performance with 94 per cent during the 2017 fiscal period.

The Executive Chairman, FIRS, Mr. Tunde Fowler, disclosed the collection figures during a visit by members of the Senate and House of Representatives Finance Committees to the palace of the Oba of Lagos, Rilwan Akiolu. The visit was part of the FIRS management stakeholders’ retreat holding in Victoria Island, Lagos.

The statement quoted him to have said, “With the support of the National Assembly, your support and that of other stakeholders, the FIRS was able to collect over N4tn in 2017.

“This is an increase of over 20 per cent relative to our collection in 2016. We are hopeful that going forward, the FIRS will be able to fund this country through taxation.”

He added, “We all recall that beginning from the second half of 2014, there has been a sustained decline in the global prices of oil.

“Oil revenue generated by the FIRS in 2014 was N2.45tn; oil revenue generated in 2015, N1.29tn; the FIRS oil revenue generated in 2016, N1.16tn; and the FIRS oil revenue generated in 2017 was N1.52tn.

“This trend has had adverse effect on the ability of oil-dependent countries to meet their development objectives.”

Fowler added that the decline in receipts from oil revenue and the resultant decline in accruals to states from the Federation Account had placed many states in a financial stress to the point where basic obligations such as the payment of employee wages had become a perennial challenge.

He stated, “This is not the first time that Nigeria will experience economic slowdown as a result of fluctuations in global oil prices.

“This retreat, and what it hopes to achieve, is part of efforts to ensure that we act differently this time around by looking beyond oil as the mainstay of our economy.

“By putting our hands together in contribution to our set goal, I am confident that we will surpass our past results and we will be well on our way to the future we hope to achieve.”

Fowler noted that though collection increased by 20 per cent relative to 2016, the cost of collection went down to 2.49 per cent in 2017 relative to 2.60 per cent in 2016 and 2.62 per cent in 2015.

This, the FIRS Chairman noted, attested to the growing efficiency in collection by the service and to which the use of Information, Communication and Technology tools contributed.

Akiolu was quoted to have told the visitors that he was confident that the FIRS would surpass the revenue performance in 2018.

“Nigeria now needs good governance that will deliver development to the people. The FIRS has collected N4tn and they will collect more in the future,” he added.

The monarch noted that 60 to 70 per cent of the FIRS collection came from Lagos, adding that he was sending a letter to the President of the Senate, Bukola Saraki, to draw his attention to the 1851 treaty, which the colonial government signed with Oba Akintoye that three per cent of all taxes and two per cent of all exports collected in Lagos would go to the Oba.

“While I am not asking that this be paid to me now, it could be paid to the Lagos State Government,” he added.

According to Akiolu, he lives by example as he pays as much as N350m in tax every year.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Economy

Inflation and Forex Mismanagement Drive Petrol Truck Prices from N7M to N25M

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Petrol Importation - investorsking.com

The Chairman of the Independent Petroleum Marketers Association of Nigeria in the Satellite Depot branch, Akin Akinrinade, has raised an alarm over the rising cost of petrol trucks in Nigeria.

According to Akinrinade, the cost of a petrol truck has surged from N7 million in May to an astonishing N25 million at present, attributed to inflation induced by poorly managed foreign exchange rates.

Akinrinade pointed out that the forex mismanagement has significantly impacted the landing cost of premium motor spirit (PMS), commonly known as petrol, consequently leading to a surge in pump prices.

The unstable business environment, coupled with the astronomical rise in expenses, has created challenges for marketers in the downstream oil sector.

Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), highlighted in October 2023 that foreign exchange challenges have hindered private companies from importing petroleum products.

As a result, the NNPCL has become the exclusive importer of petrol.

The decision to limit private entities from importing fuel comes after President Bola Tinubu’s initiatives aimed at deregulating the fuel market.

Initially, the plan was to allow private companies to import fuel starting June 2023, aligning with efforts to balance the market after removing petrol subsidies.

The ripple effects of the soaring petrol costs are already evident, with commercial transporters increasing fares, and private car owners seeking fuel-saving alternatives.

As Christmas approaches, the surge in demand for interstate travel is expected to further elevate costs, posing financial challenges for many Nigerians amidst stagnant income levels.

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Economy

Nigeria’s Presidential CNG Initiative Allocates N100bn for CNG Buses and EV Adoption

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The Presidential Compressed Natural Gas (CNG) Initiative has allocated N100 billion to expedite the deployment of CNG buses nationwide, according to a statement released on Wednesday.

The initiative, designed to catalyze an Auto-gas and Electric Vehicle (EV) revolution in mass transit and transportation, aims to enhance sustainability and cost-effectiveness.

The statement revealed that the fund would be instrumental in supporting the adoption of auto-gas and electric vehicles, signaling a commitment to a more sustainable and economical future in the transportation sector.

The Presidential CNG Initiative plans to leverage over 11,500 CNG and electric-fueled vehicles, along with the deployment of 55,000 conversion kits.

This strategic approach is intended to reduce transportation costs for Nigerians and mitigate the challenges posed by the rising cost of living.

Under the Renewed Hope Agenda, the Presidential CNG Initiative is dedicated to realizing the President’s vision, guided by its steering committee led by FIRS Chairman Zacch Adedeji.

The statement highlighted recent achievements, including strategic technical partnerships and the ongoing commissioning of CNG Conversion centers in key states such as Lagos, Abuja, Kaduna, Ogun, and Rivers.

Several more centers are slated for commissioning in the coming weeks, reflecting the initiative’s momentum and commitment to achieving its objectives.

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Economy

Nigeria’s Power Transformation: 53 Projects Worth N122bn on Track for May 2024 Completion

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The Central Bank of Nigeria (CBN), in collaboration with the Transmission Company of Nigeria (TCN) and power distribution companies, is set to complete 53 power projects by May next year.

Valued at N122 billion, these projects aim to add over 1,000 megawatts to TCN’s wheeling capacity.

During a recent tour of three ongoing projects in Lagos, TCN’s Programme Coordinator, Mathew Ajibade, assured that the projects were not abandoned, refuting speculations.

He confirmed that work is progressing smoothly and is expected to be completed by May 2024, as initially planned.

Assistant Director/Head of Infrastructure Finance Office at the CBN, Tumba Tijani, highlighted the CBN’s support for the power sector, revealing that the bank released a loan at a 9% interest rate in August last year for the projects.

The funding, part of the Nigeria Electricity Market Stabilisation Facility-3, amounts to N122,289,344 and aims to address transmission/distribution bottlenecks, enhance supply to end-users, and unlock unutilized generation capacity.

Tijani disclosed that N85.43 billion has been disbursed into the Advance Payment Guarantee account of the 53 contractors responsible for executing the projects.

The comprehensive project list includes the delivery of power transformers, re-conductoring existing transmission lines, upgrading existing substations, and constructing 33KV line bays.

The initiative reflects a concerted effort to enhance Nigeria’s power infrastructure and meet growing energy demands.

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