Nigeria's Revenue Generation Performance Slumps By 40 Percent
File: Money

Nigeria’s revenue generation performance has slumped by 40 percent, according to a report unveiled in Abuja on Monday.

The report was put together by Afri-Invest West Africa which called on the Federal Government to adopt a pragmatic approach to shore up its independent revenue.

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According to the Managing Director of Afri-Invest West Africa Ike Chioke during the presentation of the report, the study was focussed on seven areas of the economy.

The report noted that “the Federal Government plans to generate 41.6 percent of its revenues from oil and the remainder from taxes, independent revenue and recoveries accounting for 40.5 percent of total projected revenues and have historically underperformed.

“Given these considerations, as well as political distractions, we estimate a significant underperformance in revenues by 40 percent.

“Hence, we estimate the fiscal deficit to expand to N4.4 trillion above budget estimate of N1.9 trillion, representing 3.5 percent of nominal Gross Domestic Product-well above the three percent threshold prescribed by the Fiscal Responsibility Act.”