The Federal Government has requested for a $1 billion (about N1.97 trn) budget support loan from the African Development Bank (AfDB) to enable it finance the 2016 budget already blighted by falling oil revenue.
AfDB said in a statement yesterday that it was considering the loan and that an appraisal mission would visit the country soon to work with authorities as economic challenges mount in Nigeria as the huge drop in crude oil prices is making development fiancing for government a tough challenge.
The loan request is coming as the Federal Inland Revenue Service (FIRS) yesterday, set a target of N4.957 trillion for 2016 while allocating 80 per cent of the resources to non- oil revenues.
However, it said Value Added Tax (VAT) is expected to bring in about N2 trillion to the coffers of the Federal Government, representing 40.35 per cent whereas Companies Income Tax ( CIT ) would pool N1.877 (37.87 per cent) thus bringing the total resources from the non-oil resources to 80 per cent. Giving the breakdowns in Abuja, at the 2016 Corporate Strategy Retreat, Executive Chairman of FIRS, Mr. Tunde Fowler, said that Petroleum Profit Tax (PPT) will garner N800 billion, Companies Income Tax (CIT), N1,877 trillion; Education Tax (ET) N180 billion, Consolidated tax N80 billion while the National Information Technology Development Endowment Fund (NITDEF) is expected to contribute N20 billion to 2016 revenue pool.
The conference with the theme “Optimising non- oil tax revenue collection through compliance had in attendance top management officers of FIRS and states’ internal revenue board chairmen.
According to the chairman, the 2016 revenue target is higher than the 2015 revenue target of N4.572 trillion of which the service was able to collect only N3.743trillion due to drop in oil taxes even as it could not meet its target for non- oil taxes-VAT and CIT.
Fowler said that FIRS under his watch will not only meet its revenue target but will surpass it this year while enjoining staff to brace up for the new challenges.
“ This is necessary as we will introduce and enhance system of performance to ensure that we all meet our targets. As part of this enhanced performance system, we have increased the threshold for payment of performance bonus from 60 per cent to 70 per cent performance. It should be noted that if indeed we are to receive performance bonuses, then our performance target should be met 100 per cent”, he said.
Minister of Budget and National Planning, Senator Udo Udoma, who was represented by Permanent Secretary in the Ministry, Mrs. Fatimah Nana Mede, noted that the revenue projections for 2016 budget were articulated by government in close collaboration with FIRS and other revenue generating agencies.
According to him, increase in non- oil revenue would be achieved through several channels which include, comprehensive audit, and compliance to spending guidelines by Government-Owned Enterprises (GOEs) with a view to enhancing independent revenue remittance from N489.29 billion in 2015 to N1.5 trillion in 2016, full implementation of Treasury Single Account to generate N900 billion operating surplus from CBN , NNPC and NIMASA among others.
; broadening tax base and improving efficiency in tax refined collection expected to raise VAT collection to N1.42 trillion in 2016 from N1.34 trillion in 2015 and funds recovery in the region of N162.43 from NPDC.
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