The Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) had received about N1.217 trillion as cost of revenue collections in the last five years, Daily Trust investigations have shown.
Analysis of official data obtained from FIRS and Federal Ministry of Finance shows that FIRS got N915.9 billion as cost of revenue collection between 2011 and 2015.
The Customs, on the other hand, got N301.4 billion for the five -year period reviewed by Daily Trust.
The FIRS and NCS are statutorily entitled to retain seven and four percent of the revenue they generated as cost of revenue collection respectively.
Their officials said they use these funds to pay salaries and other workers’ emoluments.
The major source of funding of the agency, according to Section 15 (a) of the FIRS (establishment) Act, is “a percentage as determined by the National Assembly of all non-oil and gas revenue collected by the Service which may be appropriated by the National Assembly for the capital and recurrent expenditures of the Service.”
The official data shows that FIRS generated N22.898 trillion between 2011 and 2015; while the Customs generated N4.306 trillion for the same period.
Trillion naira earnings
Further annual breakdown shows that FIRS generated N4.629 trillion in 2011, N5.008 trillion (2012), N4.806 trillion (2013), N4.715 trillion (2014), and N3.742 trillion (2015).
The Customs generated N742 billion in 2011, N851 billion (2012), N833 billion (2013), N977 billion (2014) and N903 billion (2015).
The four percent annual cost of revenue earnings of the FIRS are: N185.14 billion in 2011; N200.31 billion (2012), N192.22 billion (2013); N188.58 billion (2014); and N149.67 billion (2015). These figures are percentages from the total revenue generated by the FIRS.
The Customs got N51.9 billion in 2011, N59.5 billion in 2012, N58.3 billion in 2013, N68.3 billion in 2014, and N63.2 billion in 2015 as its seven percent cost of revenue collection earnings.
What the billions can do
The money received by the two revenue generating agencies is more than four times the amount the federal government said it requires to fix 50 dilapidating bridges along federal roads across the country.
Minister of works, power and housing Babatunde Fashola said Tuesday that the federal government would spend N270 billion to repair the 50 bridges within three year period.
The amount accrued to the FIRS and Customs within the period under review is almost equal to the funds budgeted by the federal government for its key capital spending on seven sectors this year.
The seven critical sectors are ministries of works, power and housing (N529bn), transport (N262bn), defence (N140bn), education (N50bn), health (N51bn), water resources (N85bn), and universal basic education commission (N92bn).
What they do with the billions
The FIRS head of communications and Servicom department, Wahab Gbadamosi said the four percent cost of collection “receipts are used to fund FIRS recurrent and capital expenditure as might be approved by the National Assembly.”
“FIRS receives four percent cost of collection, only on non-oil receipts.” Gbadamosi said in an emailed response. He said the agency’s “budget is appropriated by the National Assembly. Releases to FIRS are based on monthly collection and distributed at monthly FAAC meetings.”
The FIRS spokesperson added that “FIRS remits unspent components of its budget- not surplus please – to the CRF on dates stipulated by federal government financial regulations.”
In his reaction, the Customs spokesperson Wale Adeniyi told Daily Trust shortly before his redeployment that the seven percent cost of collection “is the only funding source for running the service.”
Responding through a text message, Adeniyi said the fund is used in upsetting “staff salaries, emoluments, recurrent to capital expenditures.”
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
