FIRS Targets N5.9tn Revenue in 2021

The Federal Inland Revenue Service (FIRS) has stated that it is targeting N5.900 trillion revenue for the country in 2021. This is as the Senate vowed to probe revenue generating agencies to ascertain compliance with remittances into the consolidated revenue account. The FIRS Chairman, Muhammad Nami, stated this on Tuesday when he appeared before the Senate Committee on Finance to defend the agency's 2021 budget proposal. Nami explained that for the 2021 budget, the agency is proposing a total revenue collection of N5.900 trillion, representing a 16.22 percent increase; above last year budget of N5.076 trillion. He stated that the cost of collection is projected at N289.25 billion to take care of the increasing cost of operation and planned expansion of operation for new sources of revenue. Nami, while reviewing the agency's performance of the 2020 budget which grossed in N4.950 trillion as against a budgeted N5.076 trillion, said the cost of collection of four percent achieved N130.45 billion against a budget of N186.76 billion. The FIRS boss also disclosed that the agency would not be recruiting any staff in 2021, as there are not enough accommodation yet even for existing staff in the face COVID-19 social distancing rules, adding that presently, some of the staff members are working remotely from home. On his part, the Chairman, Senate Committee on Finance, Solomon Adeola, disclosed that his committee is to begin a full blown investigation of all the 467 revenue generating agencies of the federal government to ascertain their compliance with remittances into the consolidated revenue account of the government as well as remittances of one percent stamp duty by all agencies on contracts it awarded. This, he said, was a way of increasing revenue for the government, adding that for government to execute projects and provide services, revenue from the oil sector is now grossly insufficient. Adeola also said the Senate would consider the possibility of approving an increase in the cost of collection that accrues to FIRS. He, however, said whatever is recommended by his committee would be presented for approval by the Senate in the plenary as the committee cannot unilaterally approved the proposed seven percent proposed by the chairman of FIRS.