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Breaking: Zacch Adedeji-led FIRS fails to meet target of oil tax revenue target by N1.69T in Q1 2024

The Federal Inland Revenue Service (FIRS) has failed to reach the approved target for the 2024 budget of N9.96 trillion, with a monthly average of N829.97 billion from oil taxes.

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The Federal Inland Revenue Service (FIRS) has failed to reach the approved target for the 2024 budget of N9.96 trillion, with a monthly average of N829.97 billion from oil taxes.

Based on the approved 2024 budget, FIRS is meant to have collected N3.32 trillion in oil taxes between January and April this year but the agency is farther from this goal by N1.69 trillion, an amount more than what it collected.

The Federal Inland Revenue Service (FIRS) has failed to reach the approved target for the 2024 budget of N9.96 trillion, with a monthly average of N829.97 billion from oil taxes.

Based on the approved 2024 budget, FIRS is meant to have collected N3.32 trillion in oil taxes between January and April this year but the agency is farther from this goal by N1.69 trillion, an amount more than what it collected.

The FIRS recorded a total of N1.63 trillion as tax revenue from the oil sector between January and April 2024, which is 49% of the approved goal.

Lower than the approved budgetary goal, the FIRS has an internal goal of N7.5 trillion for the entire year, with a monthly average of N625 billion.

This means that the agency should have an internal four-month tax revenue goal of N2.5 trillion. However, it only recorded about 65% of its four-month goal.

The amount is also 22% of the N7.5 trillion that the agency plans to collect this year, as it sets its sights on a significant revenue boost from the oil sector in 2024.

Source: FIRS

The total figure raised so far this year is slightly higher than the N1.19 trillion collected within the same period last year.

The data for the amount raised this year is based on figures presented by FIRS officials at the monthly meetings of the Federal Accounts Allocation Committee (FAAC).

What the Data Shows

In the period under review, FIRS only recorded Petroleum Profits Tax (PPT) and Hydrocarbon Tax (HT) from foreign firms and zero collection from local firms in 2024.

A total of N966.73 billion was recorded as foreign receipts, a substantial increase of 84% compared to the total foreign receipts collected in the same period of 2023 (N525.14 billion).

This increase can be attributed to higher oil prices or naira devaluation. However, in 2023, there was a record of N664.90 billion as local receipts for PPT.

A total of N1.19 trillion was collected in the first four months of 2023 from local and foreign oil firms.

The data also shows that Company Income Tax (CIT) on Upstream Activities was N667.74 billion in the period under review in 2024.

However, there is no record of such tax in the same period in 2023. This means a total of N1.63 trillion was collected from the oil sector’s PPT and CIT in 2024.

Issues in the oil sector

Nigeria’s oil sector has been bedevilled by several challenges, such as pipeline vandalism, illegal oil bunkering and theft. Also, the majority of Nigeria’s oil pipeline infrastructure was constructed around 70 years ago, and is outdated.

Due to the challenges in the oil sector, the Federal Government hardly made up to 70% of its target revenue from this sector in the past two years.

In 2022, the Federal Government generated only 35.4% of its targeted oil revenue, earning N776.35 billion out of N2.19 trillion.

There was some improvement in 2023, as FIRS collected about 60% of its targeted oil revenue in 2023, getting N3.17 trillion out of N5.26 trillion last year.

Aside from the government’s revenue taking a hit, oil firms, who have been struggling in the sector, have chosen to exit the market. They include TotalEnergies,  Shell, ExxonMobil and Norway’s Equino.

TotalEnergies’ CEO, Patrick Pouyanne, stated that the company chose to invest $6 billion in Angola over Nigeria due to policy inconsistencies and other issues in the country.

What You Should Know

While being a leading oil producing nation, Nigeria still struggles to meet its OPEC quota as a result of so many factors such as oil theft, low investment and infrastructure inadequacy in the sector.

The Federal Government targets a conservative oil price benchmark of $77.96 per barrel, coupled with a daily production estimate of 1.78mb/d for 2024.

About two weeks ago, Brent crude futures traded near $84 a barrel, while West Texas Intermediate (WTI) remained above $80.

Last month, Nigeria’s 1, higher than the major oil benchmark.

Also, the Joint Ministerial Monitoring Committee (JMMC) of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) pegged Nigeria’s crude oil production quota for 2024 at 1.5 million barrels daily.

However, Nigeria’s average crude oil production for the month of April marginally rose to 1.281 million barrels daily.
In the first quarter of the year, average daily production stood at 1.327 million barrels per day.

The consistent inability of the country to meet its OPEC quota and budget proposal target has negative effects on revenue generation, foreign exchange stabilisation, overall budget performance and foreign reserve position.

Despite the challenges, the current administration said it aimed to increase the country’s oil production to an ambitious 4 million barrels daily by the end of the decade.

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Ex-Senator Iyabo Obasanjo Joins All Progressives Congress

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Prof. Iyabo Obasanjo, daughter of former President Olusegun Obasanjo, has reportedly registered as a member of the All Progressives Congress in Ogun State, according to a former chairman of Abeokuta South Local Government.

It was gathered that the former senator of Ogun Central completed her e-registration on Tuesday at Ibogun, Ward 11, Ifo Local Government Area of the state.

Confirming the development on Wednesday, Biodun Ajayi, former Chairman of Abeokuta South Local Government and a close ally of Prof. Obasanjo, told Vanguard that the registration was successfully concluded.

Ajayi, who currently serves as a Commissioner with the State Universal Basic Education Board, SUBEB, said: “I can confirm to you that Prof. Iyabo Obasanjo completed her online registration as a member of our great party, the APC, on Tuesday at Ibogun Ward 11 in Ifo Local Government.”

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BREAKING: Supreme Court Upholds Acquittal Of Hamza Al-Mustapha In Kudirat Abiola Murder Case

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A five-man panel of the Supreme Court, headed by Justice Uwani Aba-Aji has dismissed the trial of Major Hamza Al-Mustapha (rtd) concerning the murder of Alhaja Kudirat Abiola.

 

Kudirat Abiola was the wife of the late businessman cum politician, Chief MKO Abiola, the presumed winner of the June 12, 1993 Presidential Election that was annulled by former President Ibrahim Babangida.

 

Mrs Kudirat Abiola was, however, murdered in Lagos in the nationwide crisis that followed the annulment and in the course of her persistent struggle to get the annulment reversed by the military.

 

The trial of Al-Mustapha on the murder charges brought against him by the Lagos State government was, however, put to rest on Thursday by a 5-man panel of Justices of the Supreme Court headed by Justice Uwani Aba-Aji.

 

At the proceedings where the Lagos State was slated to re-open the trial, no legal representation was made while no process was filed since 2014 when order to re-open the case was granted in favour of the state government.

 

When the matter was called, Paul Daudu, a Senior Advocate of Nigeria stood for Al-Mustapha and informed the Justices that Lagos has not taken any step to implement the order granted it in 2014 to re-open the trial.

 

He said that not even a notice of appeal was filed by Lagos as the appellant to demonstrate its seriousness to prosecute the trial.

 

The senior lawyer informed the Apex Court that in 2014 when order to re-open the trial was granted, Lagos was issued a 30 day ultimatum to file its notice of appeal.

 

Daudu explained that more than nine years after, nothing was done to comply with the order.

 

He therefore urged the Court to hold that the appellant has abandoned the case and should be dismissed in its entirety.

 

Justice Uwani Aba-Aji, who presided over the matter sought to know if Lagos was served with hearing notice, the question that was answered in the affirmative by the Registrar of the Court.

 

In a brief ruling, the Supreme Court in a unanimous decision agreed that Lagos has lost interest in the matter and consequently abandoned it.

 

Justice Aba-Aji held that nine years was long enough for the appellant to have filed notice of appeal and the appeal in the matter.

 

Besides, the Court expressed disgust that no legal representation was made by the state government while no information was made available to the Court and the respondent.

 

Consequently, the matter marked SC/CR/45/2014 was dismissed.

 

Another matter by the Lagos governor marked SC/CR/6/2014 was also dismissed on the same ground.

 

The Supreme Court had in 2014 in a brief ruling on the application by Lagos State for permission to re-open the case out of time, granted the request for the Lagos to challenge the Court of Appeal decision of July 12, 2013 that discharged and acquitted Al-Mustapha from the murder case.

 

The then Acting Chief Justice of Nigeria (CJN) Justice Walter Samuel Nkanu Onnoghen in the ruling of a panel of seven Justices ordered Lagos State to file its notice of appeal within 30 days.

 

The decision of Justice Onnoghen on the Lagos application argued by Osunsanya Oluwayemisi, a Senior State Counsel in the Lagos Ministry of Justice followed the consent of Al-Mustapha’s lawyer, Mr. Joseph Dauda SAN, not to oppose the application.

 

The acting CJN had said that by the decision of the apex court, the time for Lagos to appeal against the findings of the Court of Appeal on the celebrated murder case has been extended from July 12, 2013 when the Court of Appeal judgment was delivered till January 7, 2014.

 

By the granted permission in 2014, the coast became cleared for the Lagos to challenge the no guilty verdict granted in favour of the military officer by the Court of Appeal in 2013

 

In the then move to re-open the case, the Lagos State government had sought to file a notice of appeal out of the time at the Supreme Court asking for the permission of the court to allow it to challenge the Appeal Court findings of Justices Amina Adamu Augie, Rita Nosakhare Pemu and Fatimo Omoro Akinbami on ground of mis-carriage of Justice in the matter.

 

The state had in the application prayed the apex court to allow it to exercise its constitutional right to test the validity and correctness of the decision of the Appeal Court.

 

It claimed that it wants to raise its ground of appeal on arguable legal and factual issues especially the question of whether there is any direct or circumstantial evidence establishing the guilt passed on Al-Mustapha in the murder case.

 

It justified its lateness in filing the appeal on the ground that it set up two legal teams to review the circumstances of the case and the verdict of the Court of Appeal.

 

The government said that it took a long time for the two legal teams to present their findings and recommended that an appeal case can be filed and sustained.

 

The Lagos State Government said that it will ask the Supreme Court to set aside the judgment of the Court of Appeal which on July 12, 2013 discharged and acquitted Major Hamza Al-Mustapha, in the murder case of late Alhaja Kudirat Abiola.

 

In place of the Appeal Court decision, the state government said that it will plead with the apex court to uphold and restore the death sentence by hanging placed on the former Chief Security Officer (CSO) to the former dictator and late Head of State, General Sani Abacha by a Lagos High Court on January 30, 2012.

 

Al-Mustapha, Mohammed Abacha and one Lateef Shofolahan were arraigned before a Lagos high court on two-count criminal charge of conspiracy to commit murder and the murder of the late Alhaja Kudirat Abiola on June 4, 1996 in Lagos State.

 

In the judgment of the high court delivered on January 30, 2012 by Justice Moji Dada, the accused persons were found culpable as charged and sentenced them to death by hanging.

 

However at the Court of Appeal approached by Al-Mustapha on April 27, 2012 for the review of the trial and the conviction, the 3-member appellate court Justices in a unanimous judgment of July 12, 2013 voided the decision of the high court, set it aside and discharged and acquitted the accused on the ground that the evidence against them was not strong enough to warrant the death sentence.

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Rivers Assembly: Minority Leader, Three Others Rejoin Impeachment Push Against Fubara

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Four members of the Rivers State House of Assembly have reversed their earlier position and renewed their backing for the impeachment proceedings against Governor Siminalayi Fubara and his deputy, Ngozi Odu.

 

The lawmakers announced their decision at a press conference held on Friday in Port Harcourt, the state capital, where they declared continued support for the impeachment process initiated by the assembly.

 

They accused the governor of failing to show remorse over the allegations levelled against him, insisting that their renewed stance was based on concerns over his conduct and response to the issues raised.

 

The legislators said their decision to recommit to the process followed further consultations and a review of developments surrounding the impeachment move.

 

Details of the impeachment process and the specific allegations against the governor were not disclosed at the briefing, as the lawmakers said further information would be made public in due course.

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