Five facts about government’s projected non-oil revenue in 2018
1. The revenue projection for 2018 is stated to be N6.607tn. This includes oil revenue of N2.442tn, contributing about 37 percent to the total proposed revenue and non-oil contributing a larger share of 63 percent valued at N4.164trn
2. Non-oil accounts for a larger portion of economic activities in the country at about 90 percent. The government has however failed to translate this enormous percentage into actual revenue, although it could be as a result of the informal sector dominating the non-oil sector, which the government hasn’t been able to fully contain.
3. An analysis of non-oil revenue proposed between 2015- 2017(up to the third quarter) reveals that government has not been able to achieve its targeted non-oil revenue, thereby leading to an increase in government borrowing, in order to ease budget deficit.
4. Non-oil revenue includes sources from company income tax (CIT), value added tax (VAT), custom and excise duties, FGN independently generated revenue (IGR), tax amnesty, recoveries, proceeds from restructuring government’s equity in oil joint ventures and other sundry incomes.
5. A larger part of the revenue will be gotten from IGR, CIT, proceeds from restructuring oil JV and sundry income. These will collectively contribute a total 72.66 percent amounting to a value of N3025.56tn. while recoveries, custom and excise duties, VAT and tax amnesty contribute about 27.2 percent amounting to N1132.61tn.
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