Senate passes FIRS and FCT 2024 budgets

The Nigerian Senate on Tuesday, March 19, 2024 passed the 2024 budget of the Federal Inland Revenue Service (FIRS) and Federal Capital Territory.

The FIRS budget amounts to N446,342,656,992.00. This decision was made following the adoption and approval of the recommendation put forth by the Senate Committee on Finance, which scrutinized the budget.

Senator Sani Musa, representing Niger East under the APC, and serving as the Chairman of the Committee, presented the report to the Senate.

According to the report, the budget allocation comprises N177,441,479,682.00 for Personnel Costs, N156,454,385,053.00 for Overhead Costs, and N112,446,822,255.00 for Capital Expenditure.

The Committee emphasised that the 2024 budget estimates for the FIRS are based on Zero Based Budgeting principles. Furthermore, it highlighted that the projected Cost of Collection for 2024, amounting to N446.34 billion, represents a 39% increase compared to the approved budgeted cost of collection for 2023, which stood at N320.90 billion.

The increase in Personnel Costs is attributed to factors such as staff strength on the payroll, including social benefits like NHIA and Pension contributions, as well as anticipated performance bonuses for the year. Similarly, the rise in Overhead Costs is justified by the necessity for more robust operational activities critical to driving the achievement of the FIRS’s core objectives, such as tax automation projects.

The Capital Expenditure estimates encompass ongoing and new projects slated for execution during the 2024 financial year. These projects are expected to contribute to the effective revenue drive of the Service, including the completion of ongoing projects, payment of retention on completed projects, and the initiation of new projects essential for revenue collection and administration.

Also, the Senate has approved the Federal Capital Territory’s (FCT) budget for the fiscal year 2024, amounting to N1.282,270,710,283.00. This decision came after the adoption and endorsement of the recommendations outlined in the harmonized report of the Senate and House of Representatives Committees on FCT regarding the 2024 FCT statutory Appropriation Bill during a plenary session held on Tuesday, March 19.

Senator Ibrahim Bomoi, the chairman of the Senate Committee on FCT, presented the comprehensive report to the Senate floor.

Out of the total budget, a portion of N140,915,003,856.00 has been allocated for personnel costs, while N373,027,373,668.00 has been earmarked for overhead costs.

The remaining balance of N768,328,232,759.00 has been allocated for capital projects for the FCT financial year, spanning from January 1st to December 31st, 2024.