The Fiscal Responsibility Commission has disclosed that the Federal Government’s revenue drop from N9 billion by 2014 to N6.1 billion in 2015, which represent 33.34 per cent.
The 2015 Annual Report and Audited Accounts of the commission revealed that N9bn was anticipated as federally-collected revenue in 2015, but only N6.1bn was actually collected.
“The 2015 actual revenue performance of N6.1bn was below the performance of N9.3bn or 93.0 per cent, achieved in 2014,” it said.
It, however, added that the oil slump and shortfall in oil production, due to oil theft and pipelines vandalism, accounted for the sharp revenue decline.
Giving a detailed analysis, the report said that for oil revenue, the performance averaged 69.11 per cent in 2015 against 93.98 per cent in 2014, a shortfall of 44.26 per cent.
The total oil revenue (gross) received for 2015 was N3.75bn, while that of 2014 was N6.73bn.
The non-oil revenue received for 2015 was also much lower than what was received in 2014.
Detailed analysis of non-oil revenue (gross) revealed that all its components performed below the budget and equally lower than 2014 receipts.
It said that the Value Added Tax receipts was N778.7bn in 2015 against N794bn in 2014, while Company Income Tax receipts was N1bn in 2015 against N1.2bn in 2014.
Customs and excise duties generated N514bn in 2015 against N566bn in 2014.
The report said that the low non-oil revenue performance suggested the ineffectiveness of the measures geared toward revenue increase as a result of the revenue diversification being pursued.
“These measures have to be re-invigorated in subsequent years to block revenue leakages and evasion of taxes and customs duties,’’ it said.
Giving an analysis of returns from Ministries, Departments and Agencies, the report showed that N4.9bn independent revenue was remitted to the treasury by 25 MDAs in 2015 against N7.7bn remitted by 20 MDAs in 2014.
It said that only 15 MDAs submitted their Internally Generated Revenue returns for the four quarters of 2015, while eight made submissions for three quarters, and over half did not make any submissions at all.
The commission blamed non-compliance with the Fiscal Responsibility Act as a major setback in collecting what was due to the treasury from the MDAs.
The FRA of 2007 was enacted to promote prudent management of the nation’s resources, ensure long-term macro-economic stability and transparency in fiscal operations of the nation’s economy.
