TOUGH TIMES: FG cuts 2019 revenue projection for agencies by N223.3bn

The reality of the harsh economic climate in the country has forced the Federal Government to down on its projected independent revenue from N847.95bn in 2018 to N624.58bn in the 2019 fiscal period.

The N624.58bn leaves a difference of N223.36 billion or 26% from the projection for 2018.

Independent revenue of the government is the fund generated by agencies captured in the Fiscal Responsibility Act of 2007. The Act stipulates that any government agency that generates revenue must remit 80 per cent of its operating surplus to the Consolidated Revenue Fund account.

The agencies in question include the Central Bank of Nigeria, Nigeria Deposit Insurance Corporation, Securities and Exchange Commission, Nigeria Shippers Council, Nigeria Export Promotion Council, National Health Insurance Scheme, Nigeria Civil Aviation Authority, and Nigerian Communication Commission.

The reduction was captured in the 2019 Budget Call Circular and signed by the Minister of Budget and National Planning, Senator Udo Udoma.

The Budget Circular sets out the requirements and instructions that must be followed in the preparation of the 2019 Federal Government budget proposal.

According to findings, some of the factors that might affect revenue projections in the 2019 fiscal period included the slowdown in economic activities, which might affect tax revenue, the uncertainty that may be caused by the general election, and weak consumer demand occasioned by low minimum wage.

Other factors that might have led to the reduction are believed to be the rate of insurgency in the North-East region, lags in fiscal spending, the issue of climate change, which would affect revenue based on agricultural productivity.

Read also: FG approves N60bn subsidy to drive down price of rice

The document reads part: “Ministries are to ensure that government-owned enterprises under their supervision submit their own three-year revenue and expenditure estimates and 2019 budgets.

“The supervising ministry is required to review and approve the GOEs’ budgets, and then submit same along with the ministry’s own budget to the BOF.

“These would be screened and revised for consistency with the government’s overall strategic thrust and subsequently presented along with the FGN annual budget to the National Assembly.

“Pursuant to the Executive Order 002, Heads of Agencies and Chief Executive Officers of GOEs are once again reminded to comply fully with the provisions of the order and are reminded of the punitive measures contained therein.”

“These would be screened and revised for consistency with the government’s overall strategic thrust and subsequently presented along with the FGN annual budge to the National Assembly.

“Pursuant to the Executive Order 002, Heads of Agencies and Chief Executive Officers of GOEs are once again reminded to comply fully with the provisions of the order and are reminded of the punitive measures contained therein”.

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