Nigeria plans to generate N18 trn revenue by 2023, boosts revenue to GDP ~Finmin
Nigeria’s minister of finance and budget, Zainab Ahmed said the government had identified oil and non-oil initiatives that could help the country generate between N13 trillion to N18 trillion and achieve its 15 percent revenue to Gross Domestic Product (GDP) target.
“Under the SRGI, therefore, we have identified various revenue initiatives that could potentially generate N13 trillion to N18 trillion across both oil and non-oil sources, and ensuring that we are able to achieve a 15 percent revenue to GDP target by 2023.
“Importantly, we recognised that the support of states would be necessary to achieve the 15 percent target. In fact, the states would need to cumulatively generate about N3.4 trillion,” the minister said at a Webinar on leveraging data to drive inclusive policy.
According to the minister, the Strategic Revenue Growth Initiative of government inaugurated last year would help the government in achieving this revenue growth target.
Ahmed said the pandemic and crash in crude oil price had drastically impacted on government’s revenue but explained that the Federal Government had been adopting several measures to tackle the challenge.
Costs Of Property Rental, Land Purchases To Go Up As Nigeria Imposes 6% Stamp Duty
“Analysis of revenue data shows that as of 2018, Nigeria’s revenue to GDP ratio stood at about eight percent, significantly below many comparator countries on the continent, as well as the continent average.”
She said the economy faced serious challenges in the first half of 2020, seeing about 65 percent decline in projected net 2020 government revenues from the oil and gas sector, with adverse consequences for foreign exchange inflows.
The Federal Inland Revenue Service (FIRS) had on Wednesday announced that landlords and their agents are to charge an additional six percent Stamp Duty on all tenancy and lease agreements and remit same to the agency.
This was in a bid by the government to ramp up revenue from non-oil sector following the sharp drop in oil revenue, the government has in recent times intensified efforts to raise earnings from taxes and specifically through Stamp Duty.
According to the Medium-Term Economic Framework (MTEF) submitted by the government to the National Assembly for approval on Tuesday, the government said it targets about N1 trillion revenue annually from Stamp Duties alone.