The Federal Governnment has revised upwards the independent revenue projections from Ministries, Departments and Agencies by N29.05bn, from N932.84bn in the 2020 fiscal period, to N961.89bn.
The new amount represents an increase of 3.11 per cent.
The N961.89bn independent revenue is contained in the revised 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper of the Federal Government, which has been submitted to the National Assembly.
The upward revision of the revenue projection by the Federal Governnment was caused by the negative impact of the Coronavirus pandemic on oil prices.
The pandemic, which has, so far, affected about 35 states and the Federal Capital Territory, has led to an unprecedented drop in global crude oil prices.
About 122 agencies are required to pay the operating surpluses into the Consolidated Revenue Fund of the Federal Government, based on the Fiscal Responsibility Act 2007.
The Act requires listed government agencies to remit 80 per cent of their annual operating surpluses to the CRF.
The operating surplus is made up of revenues accruing to government agencies above what they are approved to spend at the beginning of the budget year.
Some of these agencies are the Petroleum Products Pricing Regulatory Agency, Central Bank of Nigeria, Nigeria Ports Authority, Federal Airports Authority of Nigeria, Nigeria Postal Service, Nigeria Communication Commission, National Inland Water Ways Authority, and National Information Technology and Development Agency.
Others are the Nigeria Airspace Management Agency, National Examination Council, Nigeria Television Authority, Nigeria Shippers Council, National Health Insurance Scheme, National Pension Commission, Corporate Affairs Commission and Standard Organisation of Nigeria, among others.
But over the years, many of these agencies have been underpaying revenue into the coffers of government.
Over 50 Government Owned Enterprises that generate independent revenue have yet to remit their operating surpluses, running into over N2trn.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, had, last month, said Nigeria faced significant medium-term fiscal challenges, especially with respect to its revenue, noting that steps were being taken to shore up revenue.
In furtherance of the objective of greater comprehensiveness and transparency in the budget process, she said the 2021 Budget would reflect the revenues and expenditures of all significant Government Owned Enterprises (excluding the Nigerian National Petroleum Corporation) and not just 10, as was the case in the 2020 budget.
She added, “Weaker-than-expected economic performance threatens the ambitious revenue growth targets, as seen in the 2020 revised budget and the updated medium-term projections.
“Achieving fiscal sustainability and macro-fiscal objectives of government will require bold, decisive and urgent action. Government is determined to act as may be required.”
She explained that key reforms would be implemented with increased vigour to improve revenue collection and expenditure management.
