Tag: Revenue

  • Nigeria Customs Service reports N2.3 trillion revenue

    Nigeria Customs Service reports N2.3 trillion revenue

    The Nigeria Customs Service (NCS) says it has so far generated N2.3 trillion revenue into the federation account in 2021.

    Mr Timi Bomodi, the Deputy National Public Relations Officer, NCS, disclosed this at a stakeholders/media engagement on trade facilitation in Lagos on Monday.

    Bomodi spoke on the topic: “Trade facilitation, a tool for enhanced revenue generation: The NCS perspective.”

    He said that the figure was higher than the 2021 target of N1.679 trillion.

    “The 2021 has been eventful for NCS, as it achieves major milestones, in spite of the debilitating effect of COVID-19, which has had negative effects on the socio-economic lives of people around the globe.

    “The year began with high expectations with regards to revenue generation and the enforcement of fiscal policy and based on 2020 target achieved was given the onerous task of collecting N1.679 trillion.

    “In the current year, the NCS has already exceeded expectations in revenue generation by going beyond the target set for it by the government, achieving N2.3 trillion,” he said.

    He added that in its anti-smuggling activities, the NCS had made landmark seizures of prohibited items and items prohibited by trade.

    “In August, the service made seizures of 17,137 kg of pangolin scales, 44 kg elephant tusks and 60 kg in pangolin claws all valued at over N22 billion.

    “This was made possible through active collaboration between NCS, U.S, the UK, and German officials who helped in tracking the suspicious shipment and led to the arrest and prosecution of some foreign nationals and their local collaborators.

    “In October FOU operatives in zone A seized 751 bullets concealed in garri sacks, while arms, ammunition and military uniforms were intercepted at Tincan port Lagos in September just to mention a few.

    “Our warehouses in all border formations are overflowing with seizures of rice, groundnut oil, used clothing, used vehicles and others,” he said.

    Bomodi said that at Apapa Area I Command, through collaboration with sister agencies and the Nigerian Navy, a landmark seizure of cocaine with a DPV of 54 million dollars was made.

    He said that the arrests and seizures were daily features in the activities of customs officers nationwide, and they underscored the fact that they operated in a highly non-compliant environment.

    According to him, the NCS is looking forward to a work environment where respect for principles and practice of international trade are the watchwords.

    “We hope in 2022, importers, exporters and their agents will comply willingly and take full advantage of the opportunities NCS offers for expedited clearance,” he said.

    Bomodi said that to enhance trade facilitation, NCS had integrated and automated over 90 per cent of its activities.

    He pointed out that the e-customs project taking off in 2022 would also provide end-to-end automation aimed at eliminating physical contact.

    Also, Comptroller Malanta Yusuf of the Apapa Command noted that trade facilitation cannot be harnessed and enjoyed without ensuring compliance level of traders.

    Yusuf explained that trade facilitation had to do with harmonisation, standardisation, modernisation and automation of trade procedures in the supply chain by deploying minimal resources in order to get great output.

    “NCS have deployed tools to ensure that trade was being facilitated for people to carry out their goods on time without it accumulating demurrage, deploy scanners to ensure the use of selectivity in inspection of containers,” he said.

    He said that in complying, traders must declare the actual cargo carried the duty, quantity and value of the cargo.

    “You cannot hide under trade facilitation and conceal things in the container and NCS will not facilitate such trade,” he said.

  • FG, States, LGs share N675bn revenue for November

    FG, States, LGs share N675bn revenue for November

    The Federation Accounts Allocation Committee (FAAC) has shared a total of N675.946 billion from November 2021 Federation Account Revenue to the Federal Government, States and Local Government Councils.

    This was contained in a communiqué issued at the end of a virtual meeting of the Federation Account Allocation Committee (FAAC) for December 2021.

    The N675.946 billion total distributable revenue comprised distributable statutory revenue of N488.674 billion; distributable Value Added Tax (VAT) revenue of N182.678 billion, Exchange Gain of N4.156 billion and Excess Bank Charges Recovered of N0.438 billion.

    In November 2021, the total deductions for cost of collection was N30.957 billion and the total deductions for statutory transfers, refunds and savings was N136.908 billion. The balance in the Excess Crude Account (ECA) was $35.365 million.

    The communiqué confirmed that from the total distributable revenue of N675.946 billion; the Federal Government received N261.441billion, the state governments received N210. 046 billion and the local government councils received N155.456 billion. The sum of N49.003 billion was shared to the relevant states as 13% derivation revenue.

    The distributable statutory revenue of N488.674billion was available for the month. From this, the Federal Government received N231.863 billion, the state governments received N117.604 billion and the local government councils received N90.668 billion. The sum of N48.540 billion was shared to the relevant states as 13% derivation revenue.

    In the month of November 2021, the gross revenue available from the Value Added Tax (VAT) was N196.175 billion. This was higher than the N166.284 billion available in the month of October 2021 by N29.891billion.

    The sum of N5.650 billion allocation to NEDC and N7.847 billion cost of collection were deducted from the N196.175 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N182.678billion.

    From the N182.678 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N27.402 billion, the state governments received N91.339 billion and the local government councils received N63.937 billion.

    The Federal Government received N1.946 billion from the total Exchange Gain revenue of N4.156 billion. The state governments received N0.986 billion, the local government councils received N0.761 billion and N0.463 billion was shared to the relevant states as 13% derivation revenue.

    It was also disclosed that the Federal Government received N0.231billion, the state governments received N0.117billion and the local government councils received N0.090 billion from the N0.438 billion Excess Bank Charges Recovered.

    According to the communiqué, in the month of November 2021, Petroleum Profit Tax (PPT), Oil and Gas Royalties, Companies Income Tax (CIT) and Value Added Tax (VAT), increased remarkably. Also, Import and Excise Duty increased marginally.

  • New revenue sharing formula coming soon – RMAFC

    New revenue sharing formula coming soon – RMAFC

    The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has assured that a new and acceptable revenue formula that will tackle new development realities in the country will be in place soon.

    Chief Elias Mbam, the Commission’s Chairman was analysing the successful engagements the commission had with various stakeholders across the country when he gave the reassurance in Abuja on Sunday.

    He commended Nigerians for their effective participation during the Commission’s Zonal Public Hearing for a new revenue sharing formula.

    Chief Mbam reiterated the determination of RMAFC to come out with credible, acceptable and fair new revenue sharing formula for the country.

    He said that the Commission would synthesise and analyse the various presentations from stakeholders’ across the six geo-political zones and the Federal Capital Territory.

    Mbam, especially, commended the 36 state governors for mobilising the people to massively and effectively participate in this all important national issue.

    Mbam recalled that when President Muhammadu Buhari inaugurated the board of RMAFC on June 27, 2020, he charged the members to be fair and just to all tiers of government in the review of the current revenue allocation formula.

    He reiterated the Commission’s commitment not to compromise RMAFC’s constitutional mandate for whatever reasons.

    The consensus of the states and the Federal Government at the various zonal public hearing was a reversal of the current sharing formula.

    The existing formular gives 52.68 per cent to the Federal Government, the states 26.72 per cent, the local governments, 20.60 per cent, with 13 per cent derivation revenue going to the oil-producing states.

    Recall that stakeholders agreed on a new formula.

    There was, however, no consensus on what the new sharing formula should be, a decision to be taken by RMAFC, which has the constitutional right to do so.

    The Federal Government had, through Secretary to the Government of the Federation, Boss Mustapha, proposed an increase in revenue allocation to local governments from 20.60 per cent to 23.73 per cent.

    He added that it was also being proposed that allocation to the Federal Government be reviewed downward from 52.68 per cent to 50.65 per cent, states from 26. 72 per cent to 25.62 per cent, with allocation for derivation remaining at 13 per cent.

    “Development needs to start getting to the local governments for the nation to get fully developed,” he said.

    Mustapha stated that the issue of revenue allocation should be handled constructively, especially in the face of dwindling revenue and the need for states to increase their internally-generated revenue (IGR).

    “It is an important fact that this review should culminate in improved national development,” the SGF said, adding that the process would culminate in the enactment of an appropriate Act by the National Assembly.

    On its part, Lagos State Government at the South-West Zonal Stakeholders meeting proposed: Federal Government: 34 per cent, states 42 per cent, local government councils, 23 per cent and Lagos State (Special Status, 1 per cent).

    Recall that Mbam at the various zonal public hearings reiterated that the revenue allocation review was not intended to change the fiscal arrangement of the country.

    “Whether we are devolving power or going into a complete system of federalism or we are restructuring is not the concern of this review.

    “The review of the mobilisation and revenue allocation is a product of law and an Act provided by the 1999 Constitution as amended,’’ he said.

    The RMAFC boss explained that the height of responsibility of any of the three tiers of government would determine what it would get.

    He said: “If the Federal Government is confirmed to have a high responsibility, it will get an equivalent of that responsibility as allocation.

    “If it is the local government that has more responsibility, it will be done the same way. Our position is that the more responsibility of a tier, the more money it gets.’’

  • FG, States, LGs share N696.965bn revenue for August

    FG, States, LGs share N696.965bn revenue for August

    The Federation Accounts Allocation Committee (FAAC) has shared a total of N696.965 billion as federation allocation for the month of August.

    Oshundun Olajide, a Deputy Director of Information at the Office of Accountant General of the Federation (OAGF), disclosed this in a statement on Thursday.

    This comes as the nation records a significant increase in the collection of Value Added Tax (VAT) and import duty, amid the lingering controversy over whose responsibility it is to collect VAT.

    A series of court cases and rulings emerged recently as the Rivers State government, backed by Lagos and some other states, challenge the legality of the Federal Inland Revenue Service (FIRS) to collect VAT.

    Olajide stated that FAAC held a virtual conference on Wednesday where it shared the sum to the three tiers of government.

    “From this amount, inclusive of Value Added Tax (VAT), Exchange Gain, Excess Bank Charges and Revenue from non-oil, the Federal Government received N289.257 billion, the states received N217.183 billion, the local government councils got N161.541 billion, while the oil-producing states received N41.376 billion as derivation (13 per cent of mineral revenue),” the statement read.

    The communique issued at the end of the meeting indicated that the gross revenue available from the Value Added Tax (VAT) for August was N166.228 billion.

    According to it, the Federal Government got N24.934 billion of the revenue generated from VAT, while the states and local government councils (LGCs) received N83.114 billion and N58.180 billion respectively.

    “The sum of N50 billion from non-oil revenue was equally distributed accordingly to the three tiers of government as follow – the Federal Government received N26.340 billion; the states got N13.360 while the LGCs received N10.3 billion.

    “The distributed statutory revenue of N477.504 billion was received for the month from which the Federal Government received N236.437 billion, states got N119.924 billion, LGCs got N92.4456 billion, and derivation (13 per cent mineral revenue) got N28.687 billion,” the statement added.

    It revealed that Companies Income Tax (CIT), Petroleum Profit Tax (PPT), oil and gas royalties, and excise duty recorded decreases, while import duty and VAT increased significantly.

    The communique indicated that total revenue distributable for the month included gross statutory revenue of N477.504 billion, VAT of N166.228 billion, exchange gain of N2.830 billion, excess bank charges recovered of N0.403 billion, and N50 billion from non-oil revenue.

    This brings the total distributable revenue to N696.965 billion for the month of August.

  • NIMASA’s mandate not to generate revenue – FG

    NIMASA’s mandate not to generate revenue – FG

    The Federal Government says Nigerian Maritime Administration and Safety Agency (NIMASA) mandate, is not to generate revenue.

    It said the mandate of the agency was to act as regulator of maritime safety and security.

    The Minister of Transportation, Mr Rotimi Amaechi, explained this in a statement by the ministry ‘s Director of Press and Public Relations, Mr Eric Ojiekwe on Saturday.

    Amaechi made the disclosure at the final session of the 5-day National Council on Transportation (NCT), held in the commercial city of Kano, Kano State.

    He said: “People put NIMASA under pressure that they must make money; make money for what, NIMASA actually is a regulatory authority, not for them to go and look for money.

    “The people that should be making money and they must hear it now is the Nigeria Ports Authority. It is their responsibility to make money.

    ”NIMASA should therefore focus on being a regulatory authority on issues of safety and security of our waterways.”

    The minister expressed dismay over the inability to convene the NCT for the past three years due to economic downturn and advent of the COVID-19 pandemic.

    He then expressed optimism that critical decisions bordering on transportation would be addressed at the summit.

    “Transportation is essential to sustainable development as it enables access to employment, business, education, health services and social interactions.

    ”The prosperity and wellbeing of developing and developed world are inseparably linked to transport.

    ”As such, President Muhammadu Buhari has made issues relating to transportation, one of the topmost priorities of his administration,” he said.

    On the state of the Dala Inland Dry Port, the minister said the Federal Government would not commission the project, if it did not see a completed primary school offering free education to the many out-of-school children in the area.

    “I want NSC to note this because that’s the agreement we had with the concessionaire.

    ”Shippers’ council can charge whatever you want to charge for the dry port but part of the profit that they make in the dry port, will go to the upbringing of those children, “ Amaechi noted.

    The Minister of State for Transportation, Sen. Gbemisola Saraki said: “after the last time the council met, Nigeria ratified the African Continental Free Trade Agreement (AfCTA).

    ”The ratification of the AfCTA is a new dawn with significantly positive ramifications for our collective future.

    ”Nigeria has an opportunity to leverage its geographical position, its large domestic market and industrial capacity to become the transportation hub for Africa.

    ”But this prize will not be easily won and there is much work to do to actualise this potential. It will require smart, rigorous, foresighted planning and swift, diligent execution across all modes of transportation,” she said .

    Saraki was represented by the Permanent Secretary of the Ministry, Dr Magdalene Ajani.

    Speaking also, Gov. Abdullahi Ganduje, the host governor, represented by his Deputy, Dr Nasiru Gawuna, expressed satisfaction at the theme of the event,
    ”Sustainable Development as a Panacea for National Development. “

    ”The theme gives me the impression that we are on the path of overcoming national development challenges.

    ”This is based on the fact that the transport industry is one promising sector that if exploited optimally, will stimulate the needed economic transformation in our country,” he said.

  • FG, States, LGs Share N760.717bn Revenue In July

    FG, States, LGs Share N760.717bn Revenue In July

    The Federation Accounts Allocation Committee (FAAC) has shared a total of N760.717 billion Federation Account Revenue to the Federal, States, and Local Governments in July.

    This was revealed in a statement on Friday at the end of the virtual meeting of the FAAC for August.

    The revenue comprised distributable statutory revenue of N617.705 billion, distributable Value Added Tax (VAT) revenue of N140.555 billion, and exchange gain of N2.457 billion.

    “In July 2021, the sum of N63.501billion was the total deductions for the cost of collection, statutory transfers, and refunds,” said Henshaw Ogubike who is the spokesperson for the Office of the Accountant General of the Federation (OAGF).

    “The balance in the Excess Crude Account (ECA) was $60.855 million.”

    From the total revenue, the Federal Government received N321.226 billion, state governments got N222.514 billion, and the sum of N166.562 billion was distributed to the local governments.

    The sum of N50.415 billion was shared to the relevant states as 13 per cent derivation revenue while the distributable statutory revenue of N617.705 billion was available for the month.

    From the distributable statutory revenue, the Federal Government received N299.004 billion, state governments received N151.659 billion, and local governments got N116.922 billion.

    The sum of N50.120 billion was given to the relevant States as 13 per cent derivation revenue.

    “In the month of July 2021, the gross revenue available from the Value Added Tax (VAT) was N151.134 billion,” Ogubike revealed. “This was lower than the N154.465 billion available in the month of June by N3.331billion.

    “The sum of N4.534 billion allocation to NEDC and N6.045 billion cost of revenue collection were deducted from the N151.134 billion gross Value Added Tax (VAT) revenue, resulting in the distributable Value Added Tax (VAT) revenue of N140.555billion.”

    From the N140.555 billion distributable VAT revenue, the Federal Government received N21.083 billion, state governments received N70.278 billion, and local governments got N49.194 billion.

  • Reps summon Customs, AGF, others over Shippers’ Council revenue collection

    Reps summon Customs, AGF, others over Shippers’ Council revenue collection

    Emman Ovuakporie
    The House of Representatives Committee on Finance on Tuesday summonsed the Nigerian Customs Service, Accountant General of the Federation and Budget Office appear before it on Monday to explain issues over the collection and appropriation of the Nigerian Shippers’ Council 2% Ports Development Levy revenue.
    This was sequel to the complaint made by the Executive Secretary, Nigerian Shippers’Council, Hon Emmanuel Jime that the main source of the agency’s revenue which is the quaterly 2% of the the total 7% Ports Development Levy amounting to N3.5 million was collected by the Nigerian Customs and sent to the Account General’s Office.
    Jime made this disclosure at the ongoing 2022-2024 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF & FSP) Interactive Session with MDAS at the National Assembly Complex, Abuja.
    The former member of the House of Representatives while highlighting the major challenges his organisation was facing said: “there is also the extra challenge will have, the agency responsible for the collection of that particular 2% that is been given under the current arrangement is Customs.
    He explained thate the Customs after collection remit the revenue to the Office of the Accountant General, “it is Customs that determines what amounts to percentage of the Port Levy; So we’re not really involved”.
    Chairman of the Reps Committee on Finance, Hon James Faleke directed that the Agencies involved should be invited to clarify the issue.
    “ES, we have to come back on Monday on this issue. Customs will be here, budget Office will be here and the Accountant General Office to come – invite Accountant General Office on the issue of collection by Customs (Shipper’s Revenue)”, Faleke said.
    The former lawmaker narrated his ordeal that Shippers’ Council has been unable to access the 1% charge on export and import which is one of its statutory source of revenue since the agency was established in 1978 and sought lawmakers intervention on the matter even as he was going to take up the matter with the supervising Ministry of Transportation.
    “There is this statutory source of revenue, 1% charge on export and import. Since Shippers’ Council was established, that particular source of revenue has never been accessed and I’m taking it up with the supervising Ministry and it is also one area that I will ultimately be going to seek the support from the other side (lawmakers)”, he stated.
    Also, the Committee turned down representatives of Head of MDAs who failed to appear in person for the MTEF interaction sessions, insisting that as Chief Accounting Officers of their organizations they must be the ones to attend to issues raised on their projections.
    Faleke while sending back the Nigeria Maritime and Safety Agency (NIMASA) Nigeria Civil Aviation Authority (NCAA) among others, threatened that any Head of MDAs that failed to appear before it would be sanctioned while the agency would be deleted from government funding.
    Similarly, some agencies, including National Business and Technical Eduction, Nigeria Immigration Service, Lagos International Trade Fair Complex who did not bring complete documents detailing their capital projects were asked to go and come back at a later date with the necessary details.
    Responding to the agencies complaints that the letter emanating from the Committee did not specifically requested for such details, Faleke said: “Each time we call for MTEF consideration, it is expected that we look back to what happened in the last three years before going forward. We don’t need to write this down in black and white because you should know you are coming to defend MTEF, the procedure is very straight. The only difference in this one is that we’re looking at capital. So it is a standard.
    “Ordinarily, MTEF documents are presented to the budget office by all the agencies from which they do their compilations and send to us and what they send to us include capital cost and revenue and what they want the National Assembly to do is to look at the document and approve before they are able to prepare budget.
    “For all other agencies we are saying that we are looking at all the projects as submitted that make up your capital projects the way you submitted it to budget office. The same you submitted you bring it to us”.
  • 2021 Half Year Results: Transcorp Hotels grow revenue as hospitality sector recovers

    Transcorp Hotels Plc has announced its un-audited financial statements for the half year ended June 30, 2021. The results published on the Nigerian Exchange Group showed that revenue rose by 84% to N8.4bn from N4.5bn in June 2020, while total assets rose by 5.27% to N119bn from N113bn during the period under review. Shareholders’ funds stood at N61bn, maintaining its year-end 2020 level.

    The Company’s results are a testament to its resilience, recording a 97% improvement year-on-year, with a Loss Before Tax of N102 million in HY 2021, compared to N3.5 billion in HY 2020.

    “Our performance reflects the capacity of our business to run sustainably and improve revenue significantly, even in tough economic conditions,” said Mrs. Dupe Olusola, Managing Director/Chief Executive Officer of Transcorp Hotels Plc.

    “We saw demand improve at impressive levels during the first half of the year, with occupancy nearing the pre-pandemic levels at some points. For example, occupancy was 67.2 percent in June, growing from 44.8 percent in January,” she said.

    Commenting further, Mrs Olusola stated: “We are encouraged by the signs of complete recovery in our corporate and group bookings, as companies begin to return to full operations and more physical meetings are held. In the meantime, we remain diligent in the execution of other initiatives for the year, leveraging technology and the expertise of our people to deliver best-in-class guest experience across all our assets, properties and touchpoints.”

    The leading hospitality brand had recently launched Aura, an online platform for booking accommodation, staycations, great food and memorable lifestyle experiences. Mrs. Olusola said Aura will help Transcorp Hotels to further redefine hospitality, grow domestic tourism and contribute to Nigeria’s economic growth, in line with the Company’s purpose of improving lives and transforming Nigeria.

    Speaking on Transcorp Hotel’s remarkable performance, the Chief Finance Officer, Oluwatobiloba Ojediran, said, “We have seen an upward trend in our quarterly performance with a revenue of N4 billion in Q1 2021 to N4.8 billion in Q2 2021, resulting in a total revenue performance of N8.8 billion. This is an impressive performance as it represents 94% of the N9.3 billion revenue that was recorded in the pre-COVID H1 2019.”

    In conclusion, the MD/CEO, Mrs. Olusola reaffirmed Transcorp Hotel’s commitment to efficiency, excellence and execution, which she said, “will help us deliver even stronger returns to our esteemed shareholders in the second half of 2021 and beyond, as we reinforce our position as leaders in the hospitality sector delivering excellent service, innovation and excellent standards to all our stakeholders”.

  • Zoom triples revenue

    Zoom triples revenue

    Zoom on Wednesday said it was still profiting massively from the pandemic-induced shift to working life, almost tripling its revenue in the last quarter.

    The profits jumped to 227.4 million dollars from 27 million dollars a year earlier, Zoom reported after the U.S. stock market closed on Tuesday.

    The video conferencing service saw revenue jump by 191 per cent to 956.2 million dollars in the first fiscal quarter of the year, which ended in late April.

    The figures easily exceeded analysts’ expectations.

    Zoom is also preparing for many workers to return to its offices.

    Chief executive Eric Yuan’s plans include positioning Zoom for use in businesses as a phone service as well as a video conference platform.

  • Four years after: MDAs yet to remit N1.2trn-Fiscal Responsibility Comm Boss

    Four years after: MDAs yet to remit N1.2trn-Fiscal Responsibility Comm Boss

    …says comm identified 46 offences but Act has no provision for punitive measures

    By Emman Ovuakporie

    Executive Chairman of the Fiscal Responsibility Commission, FRC, Victor Muruako on Wednesday said Ministries Departments Agencies, MDAs, have failed to remit N1.2trillion for the past four years to the Federal Government.

    TheNewsGuru.com, TNG reports many MDAs still persist in defaulting and practically keeping money away from the Federal Government’s reach for funding its budgets.
    Speaking at an ongoing press briefing in the National Assembly, the FRC boss stated that:
    “Our records indicate that over N1.2trn is still in the hands of defaulting MDAs.
    “These figures are confirmed from our analysis from annual audited financial reports submitted to our commission by the concerned agencies.

    “Much more is yet out there in the hands of the MDAs that either have failed to dutifully audit their accounts or that have done so but choose not to forward copies of their financial reports to the commission as required by law.

    He also lamented that”in the Act establishing the commission, 46 offences were identified but no punitive measures attached.