Aduragbemi Omiyale
By Aduragbemi Omiyale
The Federal Inland Revenue Service (FIRS) has been authorised by the Senate to spend the sum of N215.8 billion for the 2022 fiscal year.
The Senate granted the agency’s budget request for the year during plenary on Wednesday after the Chairman, Senate Committee on Finance, Mr Solomon Adeola, presented a report for consideration.
He informed his colleagues that 2022 projected Cost of Collection of N215.8 billion was slightly lower than the 2021 approved revenue of N216.7 billion.
According to him, the FIRS intends to spend in the year N119.7 billion for personnel cost, N60.2 billion for overhead cost, and N36.0 billion for capital cost.
The lawmaker explained that the personnel cost was based on staff strength on the payroll, including social benefits such as NHIS, pension contribution among others, and anticipated performance bonus for the year.
He attributed the increase in overhead projection to the need for more robust operational activities which has a direct relationship with overhead budget lines such as electricity tariff, generator fuel cost, legal services due to tax disputes, local travels and transport and critical ones that relate directly to tax collection and administration.
Mr Adeola added that capital cost estimates reported include ongoing and new projects which are to be executed during the 2022 financial year.
“These are a result of expected completion of projects, payment of retention on completed projects and some new projects for effective revenue drive,” he said.
Giving a review of the 2021 Budget Performance of the FIRS, Mr Adeola said, “The service collected N4.53 trillion as at October 31, 2021, out of the total projected revenue target of N7.61 trillion which represents 60 per cent achievement.
“The performance based on the target for the period of N6.34 trillion represents 71 per cent achievement.
“The non-oil component of the tax collected stands at N3.5 trillion and represents 63 per cent achievement of total non-oil revenue target of N5.6 trillion.”
