Home News Despite targeting N7.9tn, FG rakes in N5tn as federally collected revenue in...

Despite targeting N7.9tn, FG rakes in N5tn as federally collected revenue in 2016

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The Fiscal Responsibility Commission (FRC) says  revealed that Nigeria rakes in N5.043 trillion as federally collected revenue in 2016, indicating a shortfall of N1.063 trillion from N6.107 trillion compared to 2015.

The figure is contained in the commission’s 2016 Annual Report and Audited Accounts released on Tuesday in Abuja.

The report said N7.948 trillion was targeted for as federally collected revenue in the period under review but the target was not reached.

For oil revenue, it said N2.69 trillion was collected in 2016, indicating a shortfall of N1.05 trillion from N3.75 trillion made in 2015.

The report said the amount represented 72.14 percent of the budget.

Giving a breakdown of the revenue items, it said crude oil sales stood at N1.45 trillion; gas, N43.61 billion; royalties; N334.8 billion; Petroleum Profit Tax (PPT); N857.5 billion and other oil revenue stood at N5.95 billion.

It also said that compared to 2015, all oil revenue components showed relative decline, adding that the decline could be the result of challenges experienced in the sector in 2016.

“These challenges include oil theft, instability in international oil price and production shutdown arising from vandalism of oil and gas facilities in the Niger-Delta region.’’

The report put average oil production in 2016 at 1.81 million barrels per day (mbpd) as against 2.2 mbpd budgeted.

It said that compared with the actual production of 2.14 mbpd in 2015, the 2016 figure indicated a reduction of 0.33 mbpd.

For non-oil revenue, the report stated that N2.347 trillion was collected.

Analysing the performance of the component of non-oil revenue, it said Value Added Tax (VAT) recorded N811 billion, Company Income Taxes (CIT), N988.44 billion, while Customs and Excise Duties recorded N506.84 billion.

It said that on a general note, non-oil revenue also witnessed a decline from the previous year’s N2.35 trillion.

The report stated that federal government independent revenue realised in 2016 stood at N237.75 billion, representing only 15.79 percent of N1.505 trillion budgeted.

“This performance was way poorer than the performance of 71.54 per cent recorded in 2015.

“Comparing the 2016 actual revenue with those of 2015 showed a decline of N85.62 billion or 26.48 per cent.

“The poor performance of Federal Government independent revenue reflects a combined effect of weak budgeting processes and inefficient revenue collection strategies,’’ it said.

The report said concerted efforts had to be made to ensure effectiveness to propel Ministries, Departments and Agencies (MDAs) to improve Internally Generated Revenue (IGR), while leakages must be blocked.

It added that it may be necessary to exploit incentives to boost IGR collection.

The FRC was established by the Fiscal Responsibility Act (FRA) 2007, to provide for prudent management of the nation’s resources.