New Telegraph

FG moves to tackle revenue shortfall

…deploys finance directors in NNPC, FIRS, NPA, 7 others

 

The Federal Government has concluded plans to deploy 10 directors of finance and accounts in select government ownedenterprises (GOEs), which are revenue generating agencies, as it explores ways to overcome volatile and dwindling revenue from the oil and gas sector.

 

Ten revenue directors are to be deployed in the pilot programme to Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), Department of Petroleum Resources (DPR), Federal Airports Authority of Nigeria (FAAN), Corporate Affairs Commission (CAC), Nigerian Communication Commission (NCC), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigeria Shippers Council (NSC) and Nigerian Port Authority (NPA). Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed,  disclosed this yesterday while flagging off an orientation programme for directors. She underscored the importance of raking more revenue from key revenue generating agencies to fund government expenditure.

 

She told the directors of revenue that in the course of the discharge of their functions, they would be involved in the revenue operations of the government enterprises by having better understanding of their business processes and operations and cause improved transparency and accountability in their revenue reporting.

 

“It is a fact that oil revenue is an exogenous variable to us and is highly volatile. Continuous reliance on it would mean that our public expenditures will always be dwindled by the shock in the global oil market price, which is not within our control. One of the possible solutions is to look into the non-oil revenues, take advantage of the potentials and make it robust.

 

We have seen the results on the increase in VAT through the Finance Act 2019 and efforts in diversifying the revenue base of government by the revenue generating agencies. “An important sector with huge potentials is the revenue generation by the Federal Governmentowned entities.

 

You may all wish to know that analysis of budgets of some of the Federal Governmentowned entities shows that  these FGOEs have the capacities, if properly managed, to significantly improve the revenue base of the Federal Government. “It is in this light that the deployment of the treasury directors is considered expedient to the selected FGOEs as a pilot test.

 

“The deployment of directors of revenue to the FGOEs is in compliance with presidential approval that was conveyed via SGF’s circular reference SGF.50/S.3/C.9/24, dated 16th October, 2018 on the approved Revenue Performance Management Framework for Government Owned Enterprises. “Government is increasingly concerned with the dwindling profile of revenue and this trend has to be quickly arrested, particularly with key revenue generating agencies of government,” she said.

In his remark, the Secretary to the Government of the Federation (SGF), Boss Mustapha, noted that the special orientation programme organised for Directors of Finance and Accounts could not have come at a better time. In a welcome address, the Accountant General of the Federation (AGF), Idris Ahmed, said the orientation was geared towards equipping participants with necessary skills to be able to carry out their duties and functions creditably as directors of revenue in the respective FGOEs.

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