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Zacch Adedeji-led FIRS fails to meet target of oil tax revenue target by N1.69T in Q1 2024

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The Federal Inland Revenue Service (FIRS) has failed to reach the approved target for the 2024 budget of N9.96 trillion, with a monthly average of N829.97 billion from oil taxes.Based on the approved 2024 budget, FIRS is meant to have collected N3.32 trillion in oil taxes between January and April this year but the agency is farther from this goal by N1.69 trillion, an amount more than what it collected.The FIRS recorded a total of N1.63 trillion as tax revenue from the oil sector between January and April 2024, which is 49% of the approved goal.Lower than the approved budgetary goal, the FIRS has an internal goal of N7.5 trillion for the entire year, with a monthly average of N625 billion.This means that the agency should have an internal four-month tax revenue goal of N2.5 trillion. However, it only recorded about 65% of its four-month goal.The amount is also 22% of the N7.5 trillion that the agency plans to collect this year, as it sets its sights on a significant revenue boost from the oil sector in 2024.Source: FIRSThe total figure raised so far this year is slightly higher than the N1.19 trillion collected within the same period last year.The data for the amount raised this year is based on figures presented by FIRS officials at the monthly meetings of the Federal Accounts Allocation Committee (FAAC).

What the Data ShowsIn the period under review, FIRS only recorded Petroleum Profits Tax (PPT) and Hydrocarbon Tax (HT) from foreign firms and zero collection from local firms in 2024. A total of N966.73 billion was recorded as foreign receipts, a substantial increase of 84% compared to the total foreign receipts collected in the same period of 2023 (N525.14 billion). This increase can be attributed to higher oil prices or naira devaluation. However, in 2023, there was a record of N664.90 billion as local receipts for PPT. A total of N1.19 trillion was collected in the first four months of 2023 from local and foreign oil firms.The data also shows that Company Income Tax (CIT) on Upstream Activities was N667.74 billion in the period under review in 2024. However, there is no record of such tax in the same period in 2023. This means a total of N1.63 trillion was collected from the oil sector’s PPT and CIT in 2024.Issues in the oil sectorNigeria’s oil sector has been bedevilled by several challenges, such as pipeline vandalism, illegal oil bunkering and theft. Also, the majority of Nigeria’s oil pipeline infrastructure was constructed around 70 years ago, and is outdated.Due to the challenges in the oil sector, the Federal Government hardly made up to 70% of its target revenue from this sector in the past two years.In 2022, the Federal Government generated only 35.4% of its targeted oil revenue, earning N776.35 billion out of N2.19 trillion.There was some improvement in 2023, as FIRS collected about 60% of its targeted oil revenue in 2023, getting N3.17 trillion out of N5.26 trillion last year.Aside from the government’s revenue taking a hit, oil firms, who have been struggling in the sector, have chosen to exit the market. They include TotalEnergies,  Shell, ExxonMobil and Norway’s Equino.TotalEnergies’ CEO, Patrick Pouyanne, stated that the company chose to invest $6 billion in Angola over Nigeria due to policy inconsistencies and other issues in the country.

What You Should KnowWhile being a leading oil producing nation, Nigeria still struggles to meet its OPEC quota as a result of so many factors such as oil theft, low investment and infrastructure inadequacy in the sector.The Federal Government targets a conservative oil price benchmark of $77.96 per barrel, coupled with a daily production estimate of 1.78mb/d for 2024.About two weeks ago, Brent crude futures traded near $84 a barrel, while West Texas Intermediate (WTI) remained above $80.Last month, Nigeria’s 1, higher than the major oil benchmark.Also, the Joint Ministerial Monitoring Committee (JMMC) of the Organisation of Petroleum Exporting Countries and its allies (OPEC+) pegged Nigeria’s crude oil production quota for 2024 at 1.5 million barrels daily.However, Nigeria’s average crude oil production for the month of April marginally rose to 1.281 million barrels daily.In the first quarter of the year, average daily production stood at 1.327 million barrels per day.The consistent inability of the country to meet its OPEC quota and budget proposal target has negative effects on revenue generation, foreign exchange stabilisation, overall budget performance and foreign reserve position.Despite the challenges, the current administration said it aimed to increase the country’s oil production to an ambitious 4 million barrels daily by the end of the decade.

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MultiChoice Talent Factory West Africa Celebrates the Next Generation of Storytellers at the 2024 Graduation Ceremony.

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MultiChoice Talent Factory (MTF) West Africa, the pioneering initiative established to nurture emerging African filmmakers and storytellers celebrated the achievements of its 2024 cohort at its graduation ceremony on December 6 in Lagos. This is the fifth graduation ceremony by the MTF. The occasion signposts another successful year of empowering young filmmakers in Africa. Each year, the MTF programme trains 60 young filmmakers across its various academies through a comprehensive, fully funded cinematography course. The programme equips participants with the technical and creative skills necessary to craft compelling stories that highlight Africa’s cultural wealth to worldwide audiences.During her congratulatory message, Executive Head of Content and Channels, West Africa, MultiChoice, Dr Busola Tejumola stated that the graduation ceremony is a time of celebrate creativity, dedication and the exceptional achievements of the grandaunts.“This ceremony is more than just an acknowledgment of academic journey; it is a physical mark of the graduation into an elite class of the MTF Alumni Network, a family whose contributions continue to shape the narrative of African storytelling globally.”Dr Tejumola also stated that in just one year, the students have made great strides including the selection of Non Cras by Elma Baisie at the Life-Off Global Network and Get Out of Your head by Oluwayanmife Arogundade and Winner Achimugu at the Afropolis Lagos 2024.Atinuke Babatunde, Academy Director of MultiChoice Talent Factory (MTF) West Africa, noted that the sub-region is crucial to the continent’s film and television industry.”West Africa is a hub of cultural richness and vibrant storytelling, which has been the foundation of its thriving film and TV industry. Through the MultiChoice Talent Factory, we have consistently supported the development of exceptional talents, who are capable of elevating this heritage to global standards. The 2024 cohort has been phenomenal, and we are excited to celebrate their achievements as they graduate,” Babatunde said.During the event, the three best graduating students won one-year scholarships to international film schools. Winner Achimugu and Anjoluwa Aluko won scholarships to the New York Film Academy and Zee World, India respectively while Adejo Edebo Emmanuel won a scholarship to learn at MNET Production in South AfricaThis year, MTF West Africa collaborated with the Earthshot Prize initiative, producing projects focused on environmental sustainability. Among these are “Revive the Ocean,” which explores innovative solutions for ocean preservation; “Racing Against Time,” a mini documentary addressing the dangers of plastic waste; and “2070,” a thought-provoking short film envisioning future environmental challenges. Students of the Academy fully conceptualised, shot, and produced these projects, demonstrating their ability to create compelling stories. Additionally, Rekiya, a short film by the class of 2023 has been selected at AFRIFF 2024 and Poached, directed Adeola Andrea Peregrino, earned accolades including 1st Prize in the LEAP Africa USAID Film Contest, 2nd Prize at the IOM Film Contest and was an official selection at AFRIFF 2024 and at Edo State Festival. Love from Bayelsa, written by alumnus Gabrie Odigiri won Best Short Film of the Year at the Imo International Film Festival. The graduation of the 2024 cohort represents yet another milestone in MTF’s ongoing commitment to upskilling exceptional storytellers, who continue to redefine the African narrative on a global stage.

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Tourism Drive: Governor AbdulRazaq intensifies efforts to rebuild Patigi Regatta Motel

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•eyes global recognition for Patigi Regatta Kwara State Governor Abdulrahman Abdulrazaq is intensifying efforts to rebuild the long-abandoned Patigi Regatta Motel located in Patigi local government area of the state.The reconstruction of the Patigi Regatta Motel was started few months ago and will be delivered with classic rooms, VIP suites, a conference hall, a restaurant, courtyards, shopping areas, expansive parking space and more.Located along Kpada Road (Federal Road) and 1500m from Kusogi Park in Patigi town, the completion of the iconic Motel will help solve the problem of accommodation during the historical Patigi Regatta Festival in the town.Founded in 1949, the Patigi Regatta Festival is a boating event featuring boating races, fishing and swimming. The festival is attended by tourism enthusiasts within and outside the State and country. However, the issue of accommodation during the festivity calls for concern. With the ongoing efforts to rebuild the Motel, Governor Abdulrazaq aims to provide quality accommodation for visitors, enhance the overall tourist experience, create jobs and boost the State’s internally generated revenue.Additionally, the Governor aims to restore a sense of pride and heritage in the State and put the Patigi Regatta Festival on the global map just like other cultural and traditional festivals in the state.

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Development Bank of Nigeria Plc Wins Financial Inclusion Leadership Award

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The Development Bank of Nigeria Plc (DBN) has emerged winner of the Financial Inclusion Leadership Award. This is in recognition of the Bank’s unwavering commitment to fostering access to financing for the Nigerian micro, small and medium enterprises (MSMEs). The award was bestowed on DBN at the “Champions of Inclusion Nigeria Financial Inclusion Awards” during the recently-concluded International Financial Inclusion Conference (IFIC) 2024, organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders. Commenting on the prestigious award, DBN’s Managing Director/CEO, Dr Tony Okpanachi, said winning the Financial Inclusion Leadership Award was a testament to the Bank’s unrelenting efforts in expanding access to financial services for MSMEs in Nigeria. “We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs,” he stated. Dr Okpanachi added: “Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services.”The Chief Operating Officer of the Bank, Mr Bonaventure Okhaimo, while receiving the award on behalf of DBN, expressed gratitude to the organisers for the recognition, describing it as a significant milestone. “The Financial Inclusion Leadership Award is a significant milestone for our Bank, demonstrating our dedication to driving financial inclusion and economic growth in Nigeria. This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said. The COO stated further, “This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact. We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard.” He emphasized. The Financial Inclusion Leadership Award is a key highlight of the International Financial Inclusion Conference (IFIC) and celebrates exceptional contributions to actions aimed at achieving the goals outlined in Nigeria’s National Financial Inclusion Strategy 3.0.The awards recognize organizations and individuals across various sectors who are driving meaningful dialogue, and broadening access to financial services for low-income excluded priority segments, including the MSMES sector, with inadequate funding being one of the challenges that inhibit the growth of small businesses in the country.

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