General News
We borrow based on your approvals – FG tells NASS
Paradox of Federal Government exceeding revenue targets and still borrowing , came to the fore on Monday during interactive sessions its revenue generating agencies had with the National Assembly’s joint Committees on Finance , Budget and National Planning on 2025 – 2027 Medium Term Expenditure Frame Work ( MTEF) and Fiscal Strategy Paper ( FSP) .
The revenue generating agencies in their separate presentations before the joint committees on 2024 budget performance and revenue projections for N49.
First to make the submission ,was the Comptroller – General of Nigeria Customs Service ( NCS) Bashir Adeniyi who said by 30th of September this year , Customs has raked in N5.
He added that N6.3trillion is targetted as projected revenue for 2025 , 10% increase of which would be the revenue target for 2026 and additional 10% increase for 2027 fiscal year .
The Group Chief Executive Officer ( GCEO) of Nigerian National Petroleum Company Limited ( NNPCL) , Mr Mele Kyari in his own presentation , said the Company exceded the N12.3trillion revenue projected for 2024 by already raking in , N13.1trillion .
” For the 2025 fiscal year , N23.7trillion is projected by NNPCL to be remitted into the federation account “, he said .
The Chairman of Federal Inland Revenue Service ( FIRS ) , Zacch Adedeji in his presentation , also informed the joint committees , that FIRS had surpassed targeted revenues across the various tax components .
According to him , on Company Income Tax , N4trillion was targeted but N5.7trillion has been realised now . On Education tax , while N70billion was targeted , a total of N1.5trillion has been realised .
” All in all , out of N19.4trillion targeted for 2024 fiscal year , N18.5trillion was real8sed as at the end of September, which clearly shows that the target , will be far exceeded by the end of the year “, he said .
Apparently amazed by submissions of the revenue generating agencies , members of the Senator Sani Musa led joint committees , took them up on why the federal government is still seeking for foreign loans despite the high increase of internally generated revenues .
Specifically , Senator Adamu Aliero ( PDP Kebbi Central) , who first asked the question said : ” What is the Federal Government doing with excess revenues generated by the various agencies in view of its unending request for for foreign loan approval ?”.
Responding , the FIRS boss said loans being requested for by the executive were already part of the appropriation act .
” Borrowing is part of what have been approved by the National Assembly for the federal government, meaning that the executive borrows based on approval of the legislature .
” The fact that we meet revenue targets and even surpassed them as revenue generating agencies , does not mean that the borrowing component of an appropriation law , passed by the National Assembly should not be activated “, he said .
Giving similar reason , the Minister of Budget and Economic Planning , Senator Atiku Bagudu , said the federal lawmakers should not forget that the borrowing plans contained in the N35.5trillion 2024vbudget , were primarily meant to fund the deficit which is N9.7trillion .
” Despite revenue targets surpassing by some of the revenue generating agencies , government still needs to borrow for proper funding of the budget , particularly in the area of deficit and productivity for the poorest and most vulnerable .
” We a long term development perspective plan agenda 2050 aiming at GDP per capital of $33,000″, he explained .
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun , also explained to the federal lawmakers that borrowing was still needed for proper funding of the budget despite increased revenues made by some agencies .
However, the Immigration Service of Nigeria , ran into troubled waters at the interactive session over highly lopsided Private Public Partnership arrangements on Passport production , which gave consultancy firm 70% of proceeds and government 30% .
The Chairman of the Committee , Senator Sani Musa , ordered Immigration to present all the documents on the unacceptable PPP arrangement to the committee before the end of the week .
” The so called PPP arrangement must be reviewed or cancelled because Nigeria and Nigerians , are seriously being short changed “, he fumed