We are struggling to pay salaries – FIRS

The Chairman of Federal Inland Revenue Service , Mohammed Nami, has stated that the agency is struggling to pay salary, therefore will not be able to recruit this year.

 Mani while presenting the budget of the agency before the Senate Committee on Finance reviewed the performance of the 2020 Budget which grossed in N4.950 trillion against a budgeted N5.076trillion representing 98 per cent, adding that the cost of collection of 4 per cent achieved N130.45billion against a budget of N186.76billion.

The FIRS chairman stated that in the 2021 Budget, the revenue collection agency is proposing a total revenue collection of N5.900 trillion representing a 16.22% increase above last year’s budget of N5.076 trillion, adding that the cost of collection is projected at N289.25biilion at 7% to take care of the increasing cost of operation and planned expansion of operation for new sources of revenue.

He further disclosed that the agency will not be recruiting any staff in the year 2021 as there are not enough accommodation yet even for existing staff in face of COVID-19 social distancing rules. He said that presently, some of the staff are working remotely from home.

At the budget defence,   Senate Committee on Finance had stated that the Senate as a whole will consider the possibility of approving an increase in the cost of collection that accrue to Federal Inland Revenue Service from its operation from its present approved 4%.

Disclosing this during the 2021 Budget Defence of FIRS, Senator Solomon Adeola (APC, Lagos West), chairman Senate Committee on Finance stated that whatever is recommended by his committee would be presented for  approval by the Senate in plenary as the committee cannot unilaterally approve the proposed 7% proposed by the chairman of FIRS,  Nami.

Senator Adeola said that FIRS should look at other alternative of revenue generation for its operations beyond a blanket increase of cost of collection for its operations aimed at generating increased revenue for the Federal and state government.

As a way of increasing revenue of the government, Senator Adeola disclosed that his committee is to begin a full blown investigation of all 467 revenue generating agencies of the Federal Government to ascertain compliance with remittances into the consolidated revenue account of the government as well as remittances of 1% Stamp Duty by all agencies on contracts it awarded stressing that for government to execute projects and provide services, revenue from the oil sector is now grossly insufficient.