Nigeria’s Federal Government has approved a new revenue boost scheme with a target to generate N3.8 trillion from non-oil sector and N160 billion from oil.
Laolu Akande, senior special assistant to the vice president on media and publicity, disclosed this to State House correspondents after the Federal Executive Council meeting presided over by Vice President, Yemi Osinbajo.
Akande, who briefed on behalf of the Minister for Finance, Budget and National Planning, Zainab Ahmed, said
Amongst several of the memos presented today, was the one by the Minister for Finance, Budget and National Planning on accelerating revenue mobilisation reforms, which is a derivative of the Federal Government’s strategic revenue growth initiative. The significant progress that has been made in this initiative includes the raising of the VAT from 5 per cent to 7 per cent and other measures since 2019.
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This particular initiative is something that is meant to address some of the fiscal challenges of the Federal Government as it is intended to raise Nigeria’s non-oil revenue potential and oil revenue potential so it is estimated, but with the implementation of this reform, it could result in a potential additional non-oil revenue and oil revenue generation of N3.8tn and N160bn annually. That is N3.8tn increase annually for non-oil revenue and N160bn for oil revenue.
In the meantime, data from numerous oil and gas as well as statistical reports, Nigeria’s revenue from the sale of crude oil fell by about N500.6 billion between January and May, 2022.
On Wednesday, it was learned that the decline in revenue was caused by the nation’s oil production, which fell by 11.63 million barrels during the review period.
Data from various Organization of Petroleum Exporting Countries reports, according to Punch, showed that the nation produced 1.399 million barrels of crude oil per day in January, or 43.369 million barrels overall.
