LEGIS-TRACKER: Reps Brief On Revenue Generation For FISCAL 2012 and 2013 (JANUARY-MAY)

LEGISREPORTS NG – You may recall the directive of the Hon Speaker in plenary session of 17th July, 2013 to the house committee on Finance to brief the house on the status of Government revenue generation and collection for Fiscal 2012 and 2013 (January – May) today, 23rd July 2013 in plenary.

 

Hon. Colleagues, the committee will like to inform you of the difficulties ancountered obtaining information from Revenue generating and collecting agencies and other government agencies with the exception of the FIRS and Nigeria Customs Service.

 

The NNPC and other agencies continue to make things difficult for the Committee with all sorts of flimsy excuses. The latest, which in the opinion-of the Committee, is pure blackmail, is the excuse that the relevant house committees have directed them not to relate with the Committee on Finance, even on the statutory issue of revenue generation and collections which has traditionally been the job of the Finance committee in preparing and monitoring the revenue framework for the Federal budget.

 

On this occasion, it took the directive of Mr. Speaker in plenary and on national television, to get the Accountant-Genera! of the Federation to avail us of this information last Friday.

 

ideally, all figures we receive from the Office of the Accountant-General of the Federation (OAGF) are compared with figures we obtain directly from the various revenue generating and collecting agencies and also agencies that generate internal revenue.

 

Hon. Colleagues, what we will present today are submissions from the OAGF which are no doubt reliable however, as soon as we get the desired responses from the other relevant agencies we will present another updated report to this Honorable house.

 

 

2012

 

Gross federally collectible revenue for Fiscal 2012 was N10/428.857 billion (N10.42S trillion). The budgeted amount by the Appropriation act revenue framework was N9,692.496 billion (N9.692 trillion) hence the target was surpassed by N736.361 billion or 7.96%.

 

When various deductions are made in line with the constitution and other provisions (ECA; JVC Cash calls, Subsidy claims, derivation etc) the amount available to the FGN for appropriation is as follows as at 31st December, 2012:

 

ACTUAL  BUDGET    Variance    %age variance

 

(Nbillion)

(Nbillion)

(Nbillion)

 

FGN SHARE OF FAAC

2,676.133

2,786.769

110.636

(3.97)

 

FGN share of VAT

87.112

107.905 ‘

20.793

(19.27)

 

FGN IGR

19.107

446.690

427.583

(95.72)

 

Other revenue

0.055

741.653

741.598

(99.99)

 

Other cashflows

82.283

_

 

TOTAL

2,864.690

4,083.017

1,218.327

f2S.84)

in addition, Net Government borrowing position (external and domesticJ.+Grants/Aid

666.669 billion

Grand Total____________________ 3,531.359 billion

N3,531.359 was available for spending by the FGN in Fiscal 2012. This was distributed as follows:

 

 

 

ACTUAL    ?

BUDGET

VARIANCE

%age

Variance

 

 

(Nbillion)

(Nbillion)

(Nbillion)

 

 

 

Recurrent:

2,333.419

2,425.050

91.631

 

(3.77)

 

Capital:

1,071.753

1,339.986

265.233

 

(19.79)

 

Total:

3,405.172

3,765.036

359.864

 

19.56}

 

State

Leaving a net cash balance of N126.187 billion as at 31   December, 2012.

 

 

In line with the revenue generated and released under the recurrent and capital sub heads we can infer as follows:

 

Recurrent budget implementation of 96.23%

 

Capital budget implementation of 80.21%

 

The various  oversight  committees  of the  house  should  verify the level  of implementation of the MDA budgets and revert.

 

The FGN had to meet up part of its expenditure profiles for Fiscal 2012 by borrowing N666.669 billion from both internal and external sources/ however over $13.5 billion ( over N2 trillion) was transferred to the Excess crude account.

 

Sector analysis:

Actual

Budget

variance

%age var

 

(Nbiliion)

(Nbiliion)

(Nbiliion)

 

 

Oil revenue:

7,826.589

6,636.510

1,190.079

17.93

 

Non Oil revenue:

2,455.577

2,609.206

(153.629)

(5.88)

 

FGN IND REV

146.690

446.780

(300,090)

(67.17)

 

TOTAL

10,428.856

9,692.496

736.360

7.59

 

 

2013

 

Comparing Year on Year collections for 2012 and 2013 Government collections are as

follows:

 

GROSS REVENUE COLLECTIONS:

2013                 2012               VARIANCE       %VARIANCE

(Nbillion)       (Nbillion)            (Nbillion)

 

JANUARY

856.082

 

FEBRUARY

791.670

 

MARCH

805.474

 

APRIL

826.238

 

MAY

791.947

843.082          13.000            1.54

951.198          (159.528)        (16.77)

982.342          (176.868)’      (18.00)

839.004          (12.766)          (1.52)

__________________________ 765.859         26.088            3.40_______

TOTAL__________ 4,071,411  4,381.485        (310.074)      (7.08)______

NOTE: Gross revenue budget for Fiscal 2013 is Nll,453.496 billion ( N11.453 trillion) which gives a monthly average of N954.458 billion.

For 5 months (Jan- May 2013)  budgeted collections should be N4,772.290 billion (N4.772 trillion).

 

Hence as at May 2013 the Federation has a shortfall of N700.879 billion or 14.68%.

SECTOR ANALYSIS                  OIL REVENUE COLLECTIONS

2013                2012                VARIANCE      ^VARIANCE

(Nbillion)       (Nbillion)       (Nbillion)

JANUARY                   655.119           696.689            (41.57)            (5.96)

FEBRUARY                  595.073           797.735            (202.662)       (25.40)

MARCH                       620.843           738.859            (118.016)       (15.97)

APRIL                          648.516           671.114            (22.598)         (3.36)

 

 

MAY______________ 566.113           579.565           (13.452)           (2.321_______

 

TOTAL____________ 3,085.664        3,483.962        (398.298)         (11.43)

 

NON OIL REVENUE COLLECTIONS

 

2013                2012                VARIANCE     %VARIANCE

 

(Nbiliion)        (Nbillion)         (Nbiiiion)

 

JANUARY                    199.161           143.845           55.316             38.45

 

FEBRUARY                   176.506           153.234           23.272             15.18

 

MARCH                       179.624           173.715           5.909               3.40

 

APRIL                           146,486           167.547           (21.061)           (12.57)

 

MAY______________ 225.174           185.882           39.292             21.13________

 

________________________ 824.223           102.728           12,46________

 

As at May 2013, oi! revenue collections are beiow collections of the same period in 2012 and also below budgeted projections for 2013._The Ministry of Finance and NNPC are in the media on a daily basis highlighting the worrisome issue of

 

crude oil  losses and pipeline theft. The Executive has to address this issue otherwise it will spell doom for the Nation. A respite here however is that crude oil prices and demand tend to increase towards the winter months near the end of the Fiscal year.

 

It should also be noted that Western Europe and the US have had relatively hot summers thereby reducing demand for crude oil.

 

Note also that the oil revenue benchmark is higher for Fiscal 2013 than 2012 and yet the revenue generated is less. This once again highlights the problems caused by our reduced production levels.

 

Non  Oil   revenue  (Excluding  FGN   IGR)  has  shown  a  Year on Year increase compared to 2012. However the figures are stil! below projections for Fiscal

 

2013.

 

FGN IGR has continued to be a worrisome issue. Collections are down about 20% on last year even with extensive efforts by the committee on Finance to ensure compliance with Government directives on remittances.

 

The effort of the committee has yieided impressive results. Correspondence from the OAGF have shown that the investigation carried out by the committee on internally generated revenue of Government owned agencies from November 2012 to March 2013 have increased remittances to the tune of N10S.S34 billion.

 

Hon. AbdulMumin Jibrin PhD Chairman, House Committee on Finance

23ru July, 2013