The Nigerian Senate on Tuesday tackled the Federal Government over its incessant borrowing while virtually all its revenue generating agencies have exceeded their targets.
The occasion was the interactive sessions 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) had with revenue generating agencies.
The agencies include Nigeria Customs Service (NCS), the Nigerian National Petroleum Company Limited (NNPCL), the Federal Inland Revenue Service (FIRS) and the Nigeria Immigration Service (NIS).
The revenue generating agencies in their separate presentations before the joint committees on 2024 budget performance and revenue projections for N49.7trillion 2025 budget, made excess revenue target submissions in the 2024 fiscal year.
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 had raked in N5.352trillion revenue which is above N5.09trillion targeted for the entire 2024 fiscal year.
He added that N6.3trillion is targeted 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 exceeded 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.
“In all, out of N19.4trillion targeted for 2024 fiscal year, N18.5trillion was realised 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 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 2024 budget 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 have 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 Nigeria Immigration Service (NIS), 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 NIS 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 reiterated.
