A total sum of N5.7tn is being planned to be distributed among the three tiers of government as allocations for the 2016 fiscal year, figures obtained from the Medium Term Expenditure Framework have revealed.
The framework covers the period 2016 to 2018 and was sent to the National Assembly by President Muhammadu Buhari late last year for approval.
A breakdown of the N5.7tn shows that the sum of N4.3tn is being planned to be shared under statutory sources from the Federation Account, while the balance of N1.4tn is to be shared from the Value Added Tax pool account.
From the N4.3tn, the fiscal strategy paper revealed that the Federal Government would get the sum of N2.2tn, representing 52.68 per cent; the 36 states of the federation, N1.14tn or 26.72 per cent of the total; while the 774 local government councils are to get N886.5bn or 20.6 per cent.
For the VAT revenue of N1.4tn, the document states that the Federal Government is expected to get the sum of N212.4bn or 15 per cent; the states, N708bn or 50 per cent; while the local governments are to get the balance of N495.6bn or 35 per cent.
The document also states that out of the N2.2tn allocated to the Federal Government from the Federation Account, the sum of N43bn, representing one per cent, will go to the Federal Capital Territory; ecological and derivation, N43bn; statutory stabilisation, N21.5bn or 0.5 per cent; and development of natural resources, N72.3bn or 1.68 per cent.
The persistent drop in the price of crude oil in the international market has impacted negatively on the nation’s revenue as the country recorded a shortfall of N1.27tn in gross federally collectible revenue in the first nine months of 2015.
Figures obtained from the Federal Ministry of Finance showed that the country earned a total sum of N3.35tn between January and September last year from oil and non-oil sources.
Based on the revenue framework, which was approved in the budget for the 2015 fiscal period, the Federal Government had projected to earn a monthly revenue of N513.69bn from oil and non-oil sources.
When the N513.69bn is multiplied over a nine-month period, the Federal Government had expected to earn a total sum of N4.62tn as revenue.
However, owing to production shut-in occasioned by crude oil theft and pipeline vandalism, the country was only able to realise N3.35tn out of the projected figure, thus leaving a shortfall of N1.27tn for the nine-month period.
While the Federal Government had projected a monthly revenue of N513.69bn, findings showed that the revenue generating agencies were unable to meet up with target in the first nine months of 2015.
The highest amount generated as revenue in the period was in June when the sum of N485.95bn was earned from both mineral and non-mineral sources.
The N485.95bn recorded in June represents a shortfall of N27.74bn when compared with the budgeted revenue of N513.69bn.
Further analysis showed that the actual receipt from mineral and non-mineral sources was N416.04bn in January last year.
This represents a shortfall of N97.65bn when compared with the targeted amount of N513.69bn
For the month of February, the sum of N401.46bn was generated, indicating a decline of N112.23bn compared to the budgeted amount of N513.69bn
In the months of March, April and May 2015, the sums of N315.04, N282.06bn and N324.96bn were received as gross federally collected revenue, indicating shortfall of N198.65bn, N231.63bn and N188.73bn, respectively.
For July, August, and September, the amounts earned were N433.58bn, N369.14bn and N321.99bn from both oil and non-oil sources, indicating a shortfall of N80.11bn, N144.55bn and N191.7bn, respectively.
Some financial experts, who spoke to our correspondent on the issue of declining revenue, said there was a need for the government to urgently begin a readjustment of its fiscal position in a way that would enable it to generate more revenue from taxes.
The Director-General, Institute of Fiscal Studies of Nigeria, Mr. Godwin Ighedosa, said, “We have so much relied on oil revenue in the last 45 years and with the decline in oil revenue, the time has come now for us to review our fiscal position.
“We need a short-term fiscal adjustment, particularly in our budgeting system, by switching from a zero-based budgeting system to a performance-based budgeting system.
“There is a need for reform of the country’s tax administration system to enable the Federal Government to raise more revenue from Capital Gains Tax. Our tax to Gross Domestic Product ratio is one of the lowest in the world and we need to address that.”
Also, the Chief Executive Officer, Safmur Investments Limited, Mr. Rislanudeen Muhammad, said the fall in revenue was making the economy to become more fragile.
He said while the economy was growing weaker by the day owing to vulnerabilities in the oil market, its external partners were beginning to have doubts about the potential in the economy.
Muhammad, a former Managing Director of Unity Bank Plc said, “We have done things wrong in the past because we should have saved a lot of money through the Excess Crude Account.
“That arrangement in the constitution that stipulates that any money generated must be shared is a major problem for Nigeria. We are not earning as much as we were earning. What the economy needs now is single digit interest rate and a little devaluation to allow for stability, support the GDP growth rate, employment and avoid recession.”
Sanwo-Olu Orders Full Reopening of Markets
Governor of Lagos State Orders Full Reopening of All Markets
Governor Sanwo-Olu of Lagos has ordered the full reopening of markets in the state after a report showed new cases of COVID-19 have subsided.
The governor ordered the full reopening of both the food markets and non-food markets across the metropolis.
Dr. Wale Ahmed, the Commissioner for Local Government and Community Affairs, disclosed this in a statement issued on Tuesday.
He said the governor took the decision to further deepen trade and commerce and ease the hardship of recent happenings.
It should be recalled that the markets were shut due to the outbreak of ravaging COVID-19 pandemic in March before they were partially reopened for activities in May.
The governor, however, urged all traders to observe all safety protocols in order to prevent a possible resurgence of COVID-19 in the state.
Private Sector Coalition Against COVID-19 (CACOVID) Speaks on Looted Palliatives, Explains Delay
Looted Palliatives: Private Sector Coalition Against COVID-19 (CACOVID) Speaks
Private Sector Coalition Against COVID-19 (CACOVID) has spoken on the recent actions of criminals and thugs who hijacked the #EndSARS protest and looted warehouses where COVID-19 palliatives were kept for distributions.
The group refuted claims that the stolen items were hoarded for certain people instead of distribution to the vulnerable they were meant for. This is despite the fact that some of the palliatives were already rotten by the time criminals broke into the warehouses.
Some of the looters, who spoke with the press, said a sizeable number of the items were already rotten and destroyed by rodents, while one of the lawmakers tasked with distribution claimed he planned to distribute the items on his birthday. A statement that angered many Nigerians.
However, in a statement issued on behalf of the group by Osita Nwanisobi, the Acting Director of Corporate Communications, CBN, on Monday, CACOVID said due to the huge size of the items meant to be distributed, the complex process involved in manufacturing, packaging and the eventual distribution to 2 million most vulnerable families across the 774 local government in the country, the group agreed to conduct the supply in stages, especially given locked down imposed by the Federal Government during the period.
The statement reads, “Members of the Private Sector-led Coalition Against COVID-19 (CACOVID) wish to call for calm, amidst the looting of COVID-19 palliatives meant for distribution in various State Government warehouses across the country.
“The Coalition is deeply concerned by the recent events and is urging those involved in the wanton destruction of public and private property to immediately desist from these raids, in order to allow the States to proceed with a peaceful and fair distribution of these palliatives to the neediest and most vulnerable in our society.
“Over the past few months, the private sector, through CACOVID has been working with governors, the FCT Minister, and the Nigerian Governors’ Forum (NGF) to procure, deliver, and distribute these food relief items to almost 2 million most vulnerable families (over 10 million Nigerians) across the 774 local government areas of the country, as part of the private sector’s support towards the national response to the COVID-19 pandemic.
“The sheer scale of this nationwide food programme and the timing of the orders and deliveries, which coincided with the lockdowns and reduced movement across the country, compelled CACOVID to roll out distribution in a staggered manner.
“The very large size of the order and the production cycle required to meet the demand caused delays in delivering the food items to the states in an expeditious manner; hence, the resultant delay in delivery of the food palliatives by the state governors.”
Makinde Directs Schools to Reopen After #EndSARS Protest
Schools to Reopen After #EndSARS Protest, Says Governor Makinde
The Executive Governor of Oyo State, Seyi Makinde, has directed schools across the Ibadan metropolis to resume normal activities immediately after the #EndSARS protest.
Mr Olasunkanmi Olaleye, the commissioner for education, Oyo State, disclosed this in a statement issued on Sunday in Ibadan.
According to Olaleye, the directive was after a careful review of the situation in the Ibadan metropolis as promised by Governor Makinde in a state broadcast on October 20.
This was after the governor ordered the closure of all schools, private and public, in the Ibadan metropolis for three days and promised to review the situation on October 23.
Olaleye said the governor thanks the youths who have been cooperating with security operatives in the state to ensure peace and order.
Forex3 weeks ago
Naira Improves Against Global Counterparts on Black Market
Business2 weeks ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
Government3 weeks ago
#Endsars: Naira Marley Calls Off Protest following Police Invitation
News4 weeks ago
Npower News: Beware of Fake Npower Employment, Ministry Warns Exited Beneficiaries
Cryptocurrency3 weeks ago
Interview with Paul Mak, CEO of Bonded.Finance
Government4 weeks ago
Donald Trump, Wife Test Positive for COVID-19
Finance3 weeks ago
Banks to Introduce New Digit and Expiry Dates on Cheque Books
Stock Market3 weeks ago
Berkshire Hathaway’s Top 3 Stocks Report up to 77% Gains YTD