CEM REPORT, FINANCE | The Federal Government has said its revenue is improving as oil theft is reducing.
This is as the government declared it is not broke and can meet its debt obligation in the short, medium, and long terms.
The Minister of Finance, Budget, and National Planning, Zainab Ahmed stated this while briefing the nation on her ministry’s scorecard in the past seven years on Thursday in Abuja.
“Nigeria isn’t broke. We continue to generate revenue on a monthly basis and these revenues are distributed at FAAC. We also disclose how much is distributed monthly to the three tiers of government.”
“We have also witnessed a significant increase in non-oil revenue. Unfortunately, oil revenue has underperformed because of criminality but recently the NNPC has reported that has been curtailed and we are beginning to see a pick-up in the production levels. This means more revenue will come to the government.”
She said there has been a significant increase in non-oil revenue even as the nation now produces 1.3 million barrels per day as against about 800,000.
Ahmed noted that the government was not earning enough to foot her needs hence it borrow, adding that borrowings had been practical, sustainable, and guided by a debt management strategy.
“There is a debt management board chaired by the Vice President. The debt management strategies are being followed judiciously. At 33 percent to GDP, we are still the lowest within countries that are our comparatives.”
However she stated that the nation revenue still need to be improved to match it’s GPD and population.
“But again, I still say we have a revenue problem in spite of the increase in non-oil revenue because our performance 8-9 per cent of GDP, the revenue is not enough. We are a population of about 200 million who deserve service. Our consumption level is low. So we need to keep looking for ways to incentivize businesses and MSMEs who are the largest contribution to labour and economy continue to grow.”
On support to developments in the states, the minister said a “total of N5.03 trillion plus an additional US$3.4 billion has been released to states by the Federal Government over the life of this administration. The support covers the 13% Derivation Refund to Oil Producing States, refund for Construction of Federal Roads, Ecological Support, Support from the Development of Natural Resources Fund, Paris Club refunds, Support from the Stabilisation Fund, COVID-19 intervention, amongst others.”