The Nigerian government hopes to amass income of between N13 and N18 trillion through oil and non-oil means with a view to bolstering its revenue to Gross Domestic Product ratio by 15 per cent.
It similarly expects states to generate N3.4 trillion in accomplishing this ambition as the coronavirus pandemic slows the flow of earnings into national purse to a mere trickle, forcing government to look beyond current income sources and cast its glance elsewhere.
Zainab Ahmed, Minister of Finance, said on Thursday at a webinar that the Nigerian government would achieve the revenue expansion plan by means of the Strategic Revenue Growth Initiative that was launched last year.
She observed that the outbreak together with the oil crash had depleted government’s income significantly but affirmed that reforms were in the pipeline to address the crisis.
Government has been firming up campaign to broaden its revenue channels by venturing into areas previously unexploited, the latest being the move to make stamp duty collection second to oil as its biggest earner and ramp up mining activities in its promising solid mineral sector.
“Analysis of revenue data shows that as at 2018, Nigeria’s revenue to GDP ratio stood at about eight per cent, significantly below many comparator countries on the continent, as well as the continent average,” Mrs Ahmed said at the conference, which centred on utilising data to drive revenue generation, policy inclusion and better governance.
The economy encountered severe shocks and headwinds between January and June with implications for foreign exchange inflow, she said, causing a 65 per cent shortfall in oil receipt target.
The Nigerian Government projects that the crisis will survive into the third quarter.
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