FG Passes N1trn Mark In Independent Revenue Collections

*Says subsidy payment may elapse in June 2022

The Minister of Finance, Budget and National Planning, Mrs Zainab Shamsuna Ahmed has disclosed that for the first time in history, the federal government exceeded the N1 trillion mark in independent revenue collections.

The minister disclosed at the Public presentation of the 2022 budget Breakdown which was held at the Ministry’s headquarters in Abuja on Wednesday.

The minister disclosed that so far, independent revenue as of November 2021 stood at N1.2 trillion.

“The 2022 budget was signed into law on December 31 last year by President Muhammadu Buhari.

“About 122 agencies are required to pay the operating surpluses into the Consolidated Revenue Fund of the Federal Government based on the Fiscal Responsibility Act 2007.

“The Act requires government agencies to remit 80 per cent of their annual operating surpluses to the CRF.

“The operating surplus is made up of revenues accruing to government agencies above what they are approved to spend at the beginning of the budget year.

“Some of these agencies are the Petroleum Products Pricing Regulatory Agency, Central Bank of Nigeria, Nigeria Ports Authority, and Federal Airport Authority of Nigeria. Nigeria Postal Service, Nigeria Communication Commission, National Inland Water Ways Authority, and National Information Technology and Development Agency.

“There is also the Nigeria Airspace Management Agency, National Examination Council, Nigeria Television Authority, Nigeria Shippers Council, National Health Insurance Scheme, National Pension Commission, Corporate Affairs Commission and Standard Organization of Nigeria among others”.

“So far as at November 2021, revenue generated independently is about N1.2trillion,” she said.

She added that growth in the non-oil sector has shown greater resilience as reflected in telecommunication, trade, manufacturing and insurance, and agriculture especially crop production.

In real terms, she said the non-oil sector contributed 92.1 per cent to the 2921 budget.

Inflation has sustained a decline, and the downward trend is expected to continue in 2022.

Speaking on the 2022 budget, she said ” the 2022 budget is to accelerate growth deepens the initiatives for diversified growth and foster sustainable development.

“The plan wills Investment of N348 trillion which will be co-funded by the federal, state and the private sector

“N293 trillion of the money is to come from the private sector that is why I the life span of the national plan, the government is committed to the improvement of private sector growth

“The budget is estimated at Oil production 1.88 million barrels per day, Exchange rate N410 to $1, 13 per cent inflation and GDP growth of 4.20 per cent.”

“Exchange rate has been fixed based on CBN NAFEX rate,” she further stated.

Projected Aggregate Revenue available is N10.74 Trillion (Inclusive of GOEs) and 32 per cent higher than the 2021 projection of N8.12 trillion.

The 2022 aggregate FGN expenditure is 17.13 trillion including GOEs and Project Tied Loans and 18 per cent higher than the 2021 budget.

Also, N3.64 trillion for debt service is 21 per cent of total expenditure and 34 per cent of total revenues.

Mrs Ahmed further stated that revenue remains a fiscal challenge which is why the government is committed to promoting the Strategic Growth and Revenue Initiative to boost oil revenue.

She affirmed that the government is also exploring possibilities for Fastrack infrastructure development.

She said The ministries of Education, Health Defence has major allocations with the ministry of education taking N1.24 trillion while health took about N876 Trillion with the mandatory one per cent of Consolidated Revenue Fund to the Basic Healthcare Provision Fund (BHPF).

The minister added that the federal government is reforming fiscal laws to make businesses work in Nigeria and improve critical infrastructure like lower and housing.

“We are already reaching out to the private sector to see how we can synergize and create a more conducive environment for businesses to thrive.”

Asked about the amendment of the 2022 budget, she said the President will send the 2022 budget back to the National Assembly for amendment and reinsertion of some legacy projects which have been removed.

“The National Population Commission has set a target for 2022 for census except it has changed, but they are almost ready and the final date will come from the President”.

Asked about the plans for subsidy removal, she said “The federal government has made a provision for subsidy in the 2022 budget from January to June. So by June, we must have consultations with stakeholders and other oil companies.

“So after June, we hope that we can deregulate PMS because we have successfully done that with kerosene and diesel and petrol will not be different.

“The PIA has provided for the deregulation of the petroleum sector and we have to abide by the law,” Mrs Ahmed added.

She said the ministry of finance, budget and National Planning has proposed N5,000 transport for the poor to ease the impact of subsidy removal but that will be ratified by the federal government to see if the implementation is feasible.

In his remarks, the Chairman, Senate Committee on Finance, Senator Solomon Adeola Olamilekan said for the first time, the government-owned enterprise is doing the right.

He said exceeding the revenue target of N1 trillion has shown the commitment government has put in place to ensure that growth is achieved.He added that the collaborations between the legislature and the executive will continue to ensure that all the content of the 2022 budget will be implemented to the latter.

The Chairman of the Federal Inland Revenue Service, Mr Muhammad Nami also said the Service has recorded huge successes in revenue collection as part of its mandate.

In his words: “For the first time, we collected N6 trillion as an agency and this is largely due to the deployment of ICT as well as the huge collaborations from the ministry of finance, budget and National Planning.

Earlier in his remarks, the DG budget office Dr Ben Akabueze said the 2022 budget is premised on the national economic plan 2021-2025.

He added that the government revenue has grown from N200 billion in 2016 to Over N1 trillion in 2021 as a result of strategic planning and commitment to the growth and development of the economy.