A report by Agora policy has shown that Nigeria’s Cost-of-Collection by the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS), is bigger than what each state received as federal allocation.

The Federal Inland Revenue Service (FIRS) receives 4% of non-oil revenues; the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) gets 4% of royalties, rents and other revenues from the oil and gas sector and the Nigeria Customs Service (NCS) receives 7% of custom duties and levies.

The report showed that in January 2024, the three agencies received a total of N78.30bn as the cost of collection for January 2024. But the gross allocations to the six geo-political zones for the same month were as follows: N56.60bn for the North-East; N55.58bn for the North-Central; N76.09bn for the North-West; N47.75bn for the South-East; N141.85bn for the South-South; and N86.60bn for the South-West.

This shows that for the month, the cost of collection received by the three agencies (N78.30bn) was higher than the gross FAAC allocations to each of four geo-political zones in the country: North East (N56.60bn), North-Central (55.58bn), North-West (N76.09bn) and South-East (N47.75bn).

The South-South and South-West got more than what the three agencies received only on account of 13% derivation for the oil producing states and the allocation of N21.28bn as the net allocation to Lagos State for Value Added Tax (VAT).

The report showed that in January 2024, FIRS received N43.35bn as cost of collection. None of the 36 states of the Federation received up to this amount as Federation allocation.

The state with the highest gross allocation for the month, Delta State, got N39.59bn, which means that FIRS not only received an amount more than what each of all the 36 states but also got 109.49% of the allocation of the state with the highest gross allocation.

The report also noted that the Customs Service received N16.27bn, the lowest cost of collection for the month. But what Customs got was higher than what each of the 31 states received as gross allocation for the month.

According to the report, the agencies can contend that they are receiving more money now simply because they are also bringing in more money to the Federation.

To check this claim, the report looked at the fully disaggregated data on FAAC disbursements for a five-year period, from February 2019 to January 2024. The data reveals how the revenue structure of the Federation has changed within five years and in a way that gives an edge to the agencies against the three tiers of government on behalf of whom they collect the revenues.

In February 2019, the gross FAAC revenue was N619.86bn and the total cost of collection was N13.58bn, or 2.19% of the gross allocation.

In January 2024, the gross revenue was N2.07trillion while the three agencies received N78.30bn, or 3.79% of it. On the face of it, the absolute value of the cost of collection is merely rising gross revenue.

But this is not exactly so according to the report because, while the gross revenues between February 2019 and January 2024 increased by 234%, the cost of collection for the same period increased by 477%. So, the cost of collection has increased in more than corresponding proportion than the gross revenue has.

https://dailytrust.com/how-firs-customs-nuprc-received-more-allocation-than-states-report/

😂

The closer you are, the bigger your share. That's how they run the affairs. Distribution of resources is never based on equity. For instance, check the budget for educational and health sectors.

Dear commenter below, how much they generate should not determine how much they get. How many new workers do they employ yearly? How many vehicles do they replace yearly and why? These, for example, are what determine how much they should get as allocation.

Expenditure should determine the budget. It is wrong to decide the budget based on revenue. Otherwise, high revenue will be a reason to waste resources.

I don't understand what this news article aims to achieve. These are productive revenue generating agencies of government that brings the bulk of the money that the lazy and unproductive state governors come to share in Abuja monthly and which they subsequently loot and plunder to the detriment of the citizens.

If these agencies meet and even sometimes surpass their targets, there is nothing wrong in taking a cost of collection for smooth operations. Afterall, these agencies are self-funded and do not rely on the national treasury to pay their staff. If not for these league of GOEs, a majority of other government agencies are more of liabilities than assets, with many of them not carrying out their core mandate because they are either too clueless or constrained to do so.

Corollary:
FIRS collects VAT for alcohol but Kano state despite banning alcohol will sit back and enjoy the proceeds of the VAT via FIRS.

Zamfara does not remit any revenue from gold mining but wants to vilify NUPRC for retaining 4% of its revenue.

Osun State has gold, vast agricultural lands, cocoa and other minerals resources in commercial quantities but wants to be dragging monthly revenue with Nigeria Customs Service.

Oh, you want FIRS staff to be on the same salary scale as National Gallery of Arts staff. Or NUPRC staff to be on the same scale as National Orientation Agency staff? Even the 36 states in Nigeria don't take the same amount as monthly allocations. Without these GOEs, many other civil servants won't get salaries including your police and army . Period!

Make dey chop

Ok

States shouldn't be getting allocations

It makes the governors lazy and complacent

AmiableMosquito:
I don't understand what this news article aims to achieve. These are productive revenue generating agencies of government that brings the bulk of the money that the lazy and unproductive state governors come to share in Abuja monthly and which they subsequently loot and plunder to the detriment of the citizens.

If these agencies meet and even sometimes surpass their targets, there is nothing wrong in taking a cost of collection for smooth operations. Afterall, these agencies are self-funded and do not rely on the national treasury to pay their staff. If not for these league of GOEs, a majority of other government agencies are more of liabilities than assets, with many of them not carrying out their core mandate because they are either too clueless or constrained to do so.

Dear amiableMosquito your comment is laced with wisdom, but did you ever stop to consider that their allocation is bigger that 5, 6, 7 to 10 states combined.
I fact why does custom has a much higher allocation than the police and army?

Maybe its because they are generating more revenues than the states? 🤔

E no funny

i love this, fg ministries agencies must received more than states

+3 states = 39 states of Nigeria 🤓

Each state should manage their resources though some governors will embezzle more but the idle one go suffer including those declaring sit at home anytime they feel like, with that insecurity will reduce because the governors would know that it will affect their income

Okay I have nothing to say to this yet

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Oakenshield:
Make dey chop

sad reality

If only 10% of Nigeria's fund could be effectively utilized, Nigeria would have moved forward. That is why I'm a strong advocate of regionalism. In regionalism, there are fewer politicians (thieves) at the same time. Let me explain. In this current political structure, at the federal level there is the president, vice, ministers, senators, reps and thousands of SAs and SSAs. Same is applicable at the 36 states and different local Governments. In the end you see that we have millions of thieves at the same time. These thieves consume as much as 99% of our resources.

If we have only 6 regions (states) with resource control, there will be fewer politicians and competitions... In the end the masses might benefit from about 10% of the resources... This is just remedial solution though.

The ultimate solution is to collapse Africa into one state with one army, one currency, one passport, one dialling code, one market and one flag.

Things keep unraveling everyday in this country of ours.....





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We know the states contributing to the immense revenue of firs,

Take aways those states, firs is doom,

With the government of regionalism, firs will become redundant,

Every state and region should control their tax collections.

Imagine? Is FIRS and Customs bigger than Ronu and Agbado with a population of 30 million living on 30k monthly salary for posting?
This is absolutely unfair and is unacceptable!

This is not what Jagaban promised us when we were campaigning for him.

However,

On your mandate we shall stand!

AmiableMosquito:
I don't understand what this news article aims to achieve. These are productive revenue generating agencies of government that brings the bulk of the money that the lazy and unproductive state governors come to share in Abuja monthly and which they subsequently loot and plunder to the detriment of the citizens.

If these agencies meet and even sometimes surpass their targets, there is nothing wrong in taking a cost of collection for smooth operations. Afterall, these agencies are self-funded and do not rely on the national treasury to pay their staff. If not for these league of GOEs, a majority of other government agencies are more of liabilities than assets, with many of them not carrying out their core mandate because they are either too clueless or constrained to do so.

You see how small your brain is. Beacause they are tax collectors so the nations wealth should be willed to them abi? What oversight functions do these 3 have. Im sure you know they do not even pay their own salaries. So what the hell is the huge budget for? Owo da formations oo

AmiableMosquito:
I don't understand what this news article aims to achieve. These are productive revenue generating agencies of government that brings the bulk of the money that the lazy and unproductive state governors come to share in Abuja monthly and which they subsequently loot and plunder to the detriment of the citizens.

If these agencies meet and even sometimes surpass their targets, there is nothing wrong in taking a cost of collection for smooth operations. Afterall, these agencies are self-funded and do not rely on the national treasury to pay their staff. If not for these league of GOEs, a majority of other government agencies are more of liabilities than assets, with many of them not carrying out their core mandate because they are either too clueless or constrained to do so.

Even I don't understand what this thread aims to achieve. To stir up hate against the agency or what ? 🤔

What exactly is the aim of this information being made public exactly?

Trolls like helinues must be responsible for this nonsense

...they receive it ..& then loot everything..

AmiableMosquito:
I don't understand what this news article aims to achieve. These are productive revenue generating agencies of government that brings the bulk of the money that the lazy and unproductive state governors come to share in Abuja monthly and which they subsequently loot and plunder to the detriment of the citizens.

If these agencies meet and even sometimes surpass their targets, there is nothing wrong in taking a cost of collection for smooth operations. Afterall, these agencies are self-funded and do not rely on the national treasury to pay their staff. If not for these league of GOEs, a majority of other government agencies are more of liabilities than assets, with many of them not carrying out their core mandate because they are either too clueless or constrained to do so.

What smooth operations are you talking about! We're they not established to make money for the good of the masses? The money they generate ought to be for the good of the masses. Why do you guys behave like this. Please tell me what they do with these billions.

So that they will have enough to loot since it's not attached to anything the masses are supposed to receive. Devilish looting wisdom

AmiableMosquito:
I don't understand what this news article aims to achieve. These are productive revenue generating agencies of government that brings the bulk of the money that the lazy and unproductive state governors come to share in Abuja monthly and which they subsequently loot and plunder to the detriment of the citizens.

If these agencies meet and even sometimes surpass their targets, there is nothing wrong in taking a cost of collection for smooth operations. Afterall, these agencies are self-funded and do not rely on the national treasury to pay their staff. If not for these league of GOEs, a majority of other government agencies are more of liabilities than assets, with many of them not carrying out their core mandate because they are either too clueless or constrained to do so.

Do you even know what you are talking about? What is the population of FIRS compared to state?

You don't know allocation is for the entire population of a state?

The only problem, I think, is their cost of collection rising to over 400 percent while gross revenue is just above 200 percent. That means they are spending more money than they are making. That is bad business. Dig into it now, and you will realise that corruption is at the very root of that anomaly.

ShogunNoName:


Even I don't understand what this thread ains to achieve. To stir up hate against the agency or what ? 🤔

What exactly is the aim of this information being made public exactly?

Trolls like helinues must be responsible for this nonsense

The agency should be audited to know what they use such huge amount for. Outside payment of salary and operational cost, what do they use such money for. What is their population?

Fear who no fear Nigerian polithiefians