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.
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
FGN SHARE OF FAAC
FGN share of VAT
in addition, Net Government borrowing position (external and domesticJ.+Grants/Aid
Grand Total____________________ 3,531.359 billion
N3,531.359 was available for spending by the FGN in Fiscal 2012. This was distributed as follows:
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.
Non Oil revenue:
FGN IND REV
Comparing Year on Year collections for 2012 and 2013 Government collections are as
GROSS REVENUE COLLECTIONS:
2013 2012 VARIANCE %VARIANCE
(Nbillion) (Nbillion) (Nbillion)
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
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