The Nigerian Senate has greenlit the 2024 budget of the Federal Inland Revenue Service (FIRS), allocating a total of N446,342,656,992 to the agency. The approval came following the endorsement of the recommendation presented by the Senate Committee on Finance.
Senator Sani Musa, representing Niger East under the All Progressives Congress (APC) and the Chairman of the Committee on Finance, tabled the report before the Senate, which led to the budget’s passage.
Breaking down the allocated funds, the report indicates that N177,441,479,682 is earmarked for Personnel Cost, N156,454,385,053 for Overhead Cost, and N112,446,822,255 for capital expenditure.
The committee emphasized that the FIRS’s budget estimates for the year 2024 were formulated based on Zero Based Budgeting principles.
Key observations highlighted in the report include the projection that the 2024 Cost of Collection, estimated at N446.34 billion, represents a substantial 39 percent increase over the approved budgeted cost of collection for 2023, which stood at N320.90 billion.
Moreover, the Personnel Cost encompasses staff salaries, social benefits such as National Health Insurance Scheme (NHIA) contributions and pension plans, alongside anticipated performance bonuses for the year.
The rise in the Overhead projection is attributed to the necessity for more robust operational activities essential for achieving the FIRS’s core objectives. Notably, initiatives like tax automation projects are among the critical activities directly linked to tax collection and administration.
The approval of the FIRS’s budget by the Senate underscores the legislative body’s commitment to ensuring adequate funding for revenue-generating agencies. Such financial backing aims to bolster their operational efficiency, crucial for the sustained revenue generation necessary for Nigeria’s economic stability and development.
