By Tony Obiechina, Abuja
The Minister of Finance, Budget and National Planning, Mrs. Zainab Shamsuna Ahmed has disclosed that for the first time in history, the federal government exceeded the N1 trillion mark in independent revenue collections.
The minister made the disclosure at the Public presentation of the 2022 budget Breakdown which held at the Ministry’s headquarters in Abuja on Wednesday.
The minister disclosed that so far, independent revenue as at November 2021 stood at N1.2 trillion.
“The 2022 budget was signed into law on December 31 last year by President Muhammadu Buhari.
“About 122 agencies are required to pay the operating surpluses into the Consolidated Revenue Fund of the Federal Government based on the Fiscal Responsibility Act 2007.
“The Act requires government agencies to remit 80 per cent of their annual operating surpluses to the CRF.
“The operating surplus is made up of revenues accruing to government agencies above what they are approved to spend at the beginning of the budget year.
“Some of these agencies are the Petroleum Products Pricing Regulatory Agency, Central Bank of Nigeria, Nigeria Ports Authority, and Federal Airport Authority of Nigeria. Nigeria Postal Service, Nigeria Communication Commission, National Inland Water Ways Authority, and National Information Technology and Development Agency.
“There is also the Nigeria Airspace Management Agency, National Examination Council, Nigeria Television Authority, Nigeria Shippers Council, National Health Insurance Scheme, National Pension Commission, Corporate Affairs Commission and Standard Organization of Nigeria among others,”
“So far as at November 2021, revenue generated independently is about N1.2 trillion” she said
She added that Growth in non-oil sector has shown greater resilience as reflected in telecommunication, trade, manufacturing and insurance,and agriculture especially crop production.
In real terms, she said the non oil sector contributed 92.1 per cent to the 2921 budget.
Inflation has sustained decline, and the downward trend is expected to continue in 2022.
Speaking on the 2022 budget, she said ” the 2022 budget is to accelerate growth deepen the initiatives for diversified growth and foster sustainable development.
“The plan will Investment of N348 trillion which will be co-funded by the federal, state and the private sector
“N293 trillion of the money is to come from the private sector that is why I the life span of the national plan, government is committed to improvement of private sector growth
“The budget is estimated at Oil production 1.88 million barrels per day, Exchange rate N410 to $1, 13 per cent inflation and GDP growth of 4.20 percent,”
“Exchange rate has been fixed based on CBN NAFEX rate,” sh further stated.
Projected Aggregate Revenue available is N10.74 Trillion (Inclusive of GOEs) and 32% higher than the 2021 projection of N8.12 trillion
The 2022 aggregate FGN expenditure is 17.13 trillion including GOEs and Project Tied Loans and 18% higher than the 2021 budget.
Also N3.64 trillion for debt service is 21% of total expenditure and 34%/ of total revenues
Mrs. Ahmed further stated that revenue remains a fiscal challenge which is why government is committed to promoting the Strategic Growth and Revenue Initiative to boost oil revenue.
She affirmed that government is also exploring possibilities to fastrack infrastructure development.
She said The ministries of Education, Health Defence has major allocations with the ministry of education taken N1.24 trillion while health took about N876 Trillion with the mandatory 1% of Consolidated Revenue Fund to the Basic Healthcare Provision Fund (BHPF).
The minister added that the the federal government is reforming fiscal laws to make businesses work in Nigeria and improve critical infrastructure like lower and housing.
“We are already reaching out to the private sector to see how we can synergize and create a more conducive environment for businesses to thrive,”
Asked on the amendment of the 2022 budget, she said the President will send the 2022 budget back to the National Assembly to for amendment and reinsertion of some legacy projects which have been removed.
“The National Population Commission has set a target for 2022 for census except it has changed, but they are almost ready and the final date will come from the President,”
Asked on the plans for subisdy removal, she said “The federal government has made a provision for subisdy in the 2022 budget from the January to June. So by June we must had consultations with stakeholders and other oil companies.
“So after June we hope that we can deregulate PMS because we have successfully done that with kerosene and diesel and petrol will not be different.
“The PIA has provided for the deregulation of the petroleum sector and we have to abide by the law,” Mrs. Ahmed added,
She said the ministry of finance, budget and National Planning has proposed N5,000 transport for the poor to ease the impact of subsidy removal but that will be ratified by the federal government to see if implementation is feasible.
In his remarks, the Chairman, Senate committee on Finance, Senator Solomon Adeola Olamilekan said for the first time, government owned enterprise are doing the right.
He said exceeding revenue target of N1 trillion has shown the committment government has put in place to ensure that growth is achieved.
He added that the collaborations between the legislature and the executive will continue to ensure that all the content of the 2022 budget will be implemented to the latter.
The Chairman of the Federal Inland Revenue Service, Mr. Muhammad Nami also said the Service has recorded huge successes in revenue collection as part of it’s mandate.
In his words: “For the first time, we collected N6 trillion as an agency and this is largely due to the deployment of ICT as well as the huge collaborations from the ministry of finance, budget and National Planning.
Earlier in his remarks, the DG budget office Dr. Ben Akabueze said the 2022 budget is premised on the national economic plan 2021-2025.
He added that government Revenues have grown from N200 billion in 2016 to Over N1 trillion in 2021 as a result of strategic planning and committment to growth and development of the economy.
