The Federal Government through the Federal Executive Council (FEC) has approved reforms to boost Nigeria’s non-oil revenue to N3.8 trillion and oil revenue to N160 billion annually.
This was presented by Nigeria’s Finance Minister, Zainab Ahmed after she presented a report on Accelerating Revenue Mobilisation Reforms as a derivative of the Federal Government’s Strategic Revenue Growth Initiative.
This was disclosed in a press briefing by Mr Laolu Akande, Senior Special Assistant to the President on Media and Publicity, after the FEC meeting on Wednesday at the Presidential Villa, Abuja.
What they are saying
Akande said that the reforms would boost Federal Government’s finance, especially the non-oil revenue.
“Among several on the memos presented was the one by the Minister of Finance, Budget and National Planning on Accelerating Revenue Mobilisation Reforms which is a derivative of Federal Government’s Strategic Revenue Growth Initiative.
“The significant progress that has been made in that initiative includes the raising of the Value Added Tax (VAT) from five per cent to seven per cent and other measures since 2019.
“This particular initiative is something meant to address some of the fiscal challenges of the Federal Government as it is intended to raise Nigeria’s non-oil revenue potential.
“So, it is estimated that with the implementation of this reform, it would result in a potential additional non-oil revenue and oil revenue generation of N3.8 trillion annually for non-oil revenue and N160 billion for oil revenue,’’
On other reports presented at the FEC meeting, Akande revealed that the Attorney-General of the Federation presented a memo on the assent of Nigeria to the Budapest Convention on Cyber Crime. The convention is comprehensive national legislation against cybercrime as a framework for technical assistance as well as international cooperation between state parties to it.
“The Minister for Water Resources also presented a memo for the implementation of Federal Government’s component for the execution of rehabilitation, expansion and upgrading of Gombe regional water supply project under the Nigeria National Water Resources,” he said.
What you should know
- Nigeria’s non-oil sector grew by 6.08 % (year-on-year) in real terms in the first quarter of 2022, an increase of 5.28 points from the preceding quarter which recorded a growth rate of 3.58%, compared to the rate recorded same quarter of 2021 and 1.34% points higher than the fourth quarter of 2022
- In real terms, the non-oil sector contributed 93.37% to the nation’s GDP in the first quarter of 2022, higher than the share recorded in the first quarter of 2021 which was 90.75% and lower than the fourth quarter of 2021 recorded as 94.81%