The
Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS)
had received about N1.217 trillion as cost of revenue collections in the
last five years, Daily Trust investigations have shown.

Analysis of official data obtained from
FIRS and Federal Ministry of Finance shows that FIRS got N915.9 billion
as cost of revenue collection between 2011 and 2015.

The Customs, on the other hand, got N301.4 billion for the five -year period reviewed Daily Trust.      

The FIRS and NCS are statutorily
entitled to retain seven and four percent of the revenue they generated
as cost of revenue collection respectively. 

Their officials said they use these funds to pay salaries and other workers’ emoluments.

The major source of funding of the
agency, according to Section 15 (a) of the FIRS (establishment) Act, is
“a percentage as determined the National Assembly of all non-oil and
gas revenue collected the Service which may be appropriated the
National Assembly for the capital and recurrent expenditures of the
Service.”

The official data shows that FIRS
generated N22.898 trillion between 2011 and 2015; while the Customs
generated N4.306 trillion for the same period.

Trillion naira earnings

Further annual breakdown shows that FIRS
generated N4.629 trillion in 2011, N5.008 trillion (2012), N4.806
trillion (2013), N4.715 trillion (2014), and N3.742 trillion (2015).

The Customs generated N742 billion in
2011, N851 billion (2012), N833 billion (2013), N977 billion (2014) and
N903 billion (2015).

The four percent annual cost of revenue
earnings of the FIRS are: N185.14 billion in 2011; N200.31 billion
(2012), N192.22 billion (2013); N188.58 billion (2014); and N149.67
billion (2015). These figures are percentages from the total revenue
generated the FIRS.

The Customs got N51.9 billion in 2011,
N59.5 billion in 2012, N58.3 billion in 2013, N68.3 billion in 2014, and
N63.2 billion in 2015 as its seven percent cost of revenue collection
earnings.

What the billions can do

The money received the two revenue
generating agencies is more than four times the amount the federal
government said it requires to fix 50 dilapidating bridges along federal
roads across the country.  

Minister of works, power and housing
Babatunde Fashola said Tuesday that the federal government would spend
N270 billion to repair the 50 bridges within three year period.

The amount accrued to the FIRS and
Customs within the period under review is almost equal to the funds
budgeted the federal government for its key capital spending on seven
sectors this year.

The seven critical sectors are
ministries of works, power and housing (N529bn), transport (N262bn),
defence (N140bn), education (N50bn), health (N51bn), water resources
(N85bn), and universal basic education commission (N92bn).   

What they do with the billions

The FIRS head of communications and
Servicom department, Wahab Gbadamosi said the four percent cost of
collection “receipts are used to fund FIRS recurrent and capital
expenditure as might be approved the National Assembly.”

“FIRS receives four percent cost of
collection, only on non-oil receipts.” Gbadamosi said in an emailed
response. He said the agency’s “budget is appropriated the National
Assembly. Releases to FIRS are based on monthly collection and
distributed at monthly FAAC meetings.”

The FIRS spokesperson added that “FIRS
remits unspent components of its budget- not surplus please – to the CRF
on dates stipulated federal government financial regulations.”

In his reaction, the Customs
spokesperson Wale Adeniyi  told Daily Trust shortly before his
redeployment that the seven percent cost of collection “is the only
funding source for running the service.”

Responding through a text message,
Adeniyi said the fund is used in upsetting “staff salaries, emoluments,
recurrent to capital expenditures.”

Source: Daily trust