Tough Times Are Ahead For Nigerians – Udo Udoma

Udo-UdomaThe Minister of Budget and National Planning, Senator Udo Udoma, has urged Nigerians to brace up for tough times ahead because of the negative economic and social issues happening across the globe.

Speaking at an interactive session with the Senate Committee on Finance and Appropriation, Senator Udoma said that the federal government would cut all frivolous expenditure in the 2016 budget and overheads will be reduced by 7%.

The Central Bank Governor, the Group Managing Director at the Nigeria National Petroleum Commission (NNPC) as well as the Ministers of Finance, were also at the forum to discuss the 2016 Medium Term Expenditure Framework (MTEF) with members of the senate committee.

The Minister of National Planning explained how the federal government arrived at the indices in the MTEF while the NNPC boss, who is also Minister of State for Petroleum, Dr. Ibe Kachikwu, gave a breakdown of the oil and gas sector, including how much has been spent on petroleum subsidy in 2015.

In the Medium Term Expenditure Framework, the 6.077 trillion naira budget with a revenue target of 3.82 trillion naira, projects a deficit of 2.22 trillion naira and projects that recurrent expenditure would drop from 84% in the 2015 budget to 70% in 2016.

The Minister of Finance, Kemi Adeosun, explained how the federal government plans to cut recurrent expenditure.

In the proposed framework, capital expenditure of 16% in the 2015 budget was raised to 30% in 2016 but with dwindling oil prices, economic analysts have expressed concern about how government intends to fund the 2016 budget.

The Chairman of the Federal Inland Revenue, Mr Babatunde Fowler, said that one of the strategies which the federal government intends to use is by blocking loopholes and opening up the tax base.

Nigeria’s Revenue Dipped As Oil Sales Dropped – FIRS Boss

FIRSThe Federal Inland Revenue Service tax collection from the oil industry in the month of March 2015 was the worst performance from the oil industry in the last 15 years.

The Acting Chairman of the FIRS, Mr Samuel Ogungbesan, said that the reason for the woeful performance was because three major oil companies had nothing to report because of the huge increase in the cost of production.

Mr Ogungbesan, who spoke at a meeting with the Senate President, Bukola Saraki, lamented that most foreign countries are not buying Nigeria’s crude oil because they have alternative source of energy.

He then explained strategies being put in place to generate revenue, one of which is tax from luxury items.

It was the first meeting between federal lawmakers in the eighth assembly and officials of the Federal Inland Revenue Service.

The meeting, called at the instance of the Senate President, was to examine strategies to improve tax collection in the country.

With a drop in revenue as a result of dwindling oil price in the international market, Nigeria has to urgently find ways of generating revenue to fund the national budget.

The Senate President said that the National Assembly would give the FIRS the support it needs to perform its role efficiently but expressed scepticism about luxury tax.

The Senate President said that the drive to improve revenue generation in Nigeria would depend largely on ramping up other sources of revenue outside oil and gas.

Therefore, the Senate is going to be stringent on its oversight of the Federal Inland Revenue Service (FIRS).

FRSC Boss Tasks Men On Credible Drivers’ Licence System

FRSC-2The Corp Marshal of the Federal Road Safety Corp, Mr Boboye Oyeyemi, has challenged officers and men of the corp including staffers of Federal Inland Revenue Service and Boards of Internal Revenue to collectively work towards delivering a more efficient and credible licensing system for Nigeria.

Speaking in Abuja at a meeting organised by the Federal Road Safety Corp for motor licensing authority and sector heads of drivers’ license centers, Mr Oyeyemi said that the corp was determined to reduce road traffic fatalities by 50% before the end of 2015.

Also speaking at the occasion, representative of the Federal Inland Revenue Service and Joint Tax Board, Mr Ahmed Jibrin Jibrin, said eliminating drivers’ license and number plate racketeering would improve the nation’s revenue and that of the states.

Federal Road Safety Corps is the government agency with statutory responsibilities for road safety administration in Nigeria.

Founded in 1988, the Federal Road Safety Corps (FRSC) operates in all Nigerian states as well as the Federal Capital Territory.