Connect with us

Economy

FG worries over declining investment in oil, gas, calls for increase effort in tax revenue

Published

4 years ago

on

Minister of State for Budget and National planning Prince Clem Ikanade Agba has expressed concern over the declining government revenue from oil stating that aggregate investment in oil and gas declined from $525bn in 2019 to $341bn in 2021 while investment in wind, solar and other renewable sources is soaring.  speaking at the Federal Inland Revenue annual retreat in Lagos the Minister said “As you may all be aware, the revenue profile of the government has been seriously challenged in the recent past due to multiple factors. Given that resources are relatively low compared to the huge responsibilities of the government, concerted efforts are required at this juncture to prioritise government expenditure as well as place emphasis on resource mobilisation.  In this context, the task of improving Nigeria’s tax revenue collection and funding position is urgent and it is a task that must be done without fail.  

“Recent happenings in the global economy is compelling nations to shift from dependence on resource wealth, particularly hydrocarbons to more innovative sources for revenue mobilisation. As the campaign for cleaner energy gains momentum and widespread support, it is resulting into lower new investments in exploration and production activities in the upstream petroleum industry.  For instance, On its part, the Federal Government has put in place the Strategic Revenue Growth Initiative (SRGI) and the annual Finance Act to mobilise domestic funds necessary for human capital and infrastructure development that are both drivers and enablers of sustainable economic growth and development. The SRGI is designed to improve government revenue and entrench fiscal prudence with emphasis on achieving value for money. In this regards, a total of 47 Strategic Revenue Growth Initiatives were identified across three Thematic areas to achieve sustainability in revenue generation, identify new revenue streams and enhance the enforcement of existing ones as well as achieve cohesion in the revenue ecosystem. 

“Within the SRGI initiative, FIRS was saddled with some deliverables which include (i) Improving Tax Collections, (ii) Closing Legal Loopholes, (iii) Broadening the Tax Base, (iv) Expanding and Improving VAT, (v) Improving Tax Compliance, (vi) Aligning Stakeholders on a Single Purpose, etc. These initiatives, we believe, have been largely achieved through the internal reforms you have introduced and the incremental changes to the tax laws via the annual Finance Act.  I encourage the Service to fully align its strategies, policies and practices to fully achieve its deliverables under the SRGI. Distinguished ladies and gentlemen, to grow the economy on an inclusive basis and achieve sustainable economic development, President Muhammadu Buhari GCFR launched the National Development Plan (NDP) 2021-2025 in December 2021.  It contains three volumes. The Volume I contains the policies with targets and the required investment; Volume II has the costed priority programmes and projects; while Volume III is the legal and legislatives imperatives, which includes the enabling laws that need to be passed or amended for effective implementation of the NDP, 2021-2025. 

“The Plan seeks to invest massively in infrastructure, ensure macroeconomic stability, enhance the investment environment and improve on social indicators and living conditions of the people. Specifically, the Plan aims to generate 21 million full-time jobs and lift 35 million people out of poverty by 2025 thus setting the stage for achieving the president’s commitment of lifting 100 million Nigerians out of poverty in 10 years.  The country can achieve these targets through an inclusive economic growth and development; leveraging its young workforce, enhancing implementation capacity at national and subnational levels and sustaining the growth of MSMEs. The Plan also focuses on identifying and removing binding constraints to growth as well as mobilizing resources for sustainable development of the country. With this Plan, the Federal Government intends to progressively continue to increase the capital component of its Budget and reduce spending on recurrent expenditure.  The financing of the NDP will rely heavily on domestic resource mobilization, especially from Non-Oil revenue sources. We all have critical roles to play in finding innovative ways to reform tax administration and raise public revenue to effectively finance the Plan. In addition, the Ministry, in line with its mandate and Presidential approval, has reached advanced stage in the development of Nigeria Agenda 2050 which is the country’s perspective development plan to replace the Nigeria Vision 20:2020. 

“We urge all critical stakeholders including the financial sector, our development partners and MDAs to continue to work closely with the Ministry to deliver on this onerous task.Distinguished ladies and gentlemen, in rounding off my address, I wish to commend the Board, Management and staff of the Service for supporting the economic growth initiative of the government.  Of particular note is the ability of the Service to bring innovations into tax administration which has boosted government revenues and enhanced ease of doing business in Nigeria. Let me take this opportunity to congratulate the Service for achieving the collection feat of 2021 with over 100% revenue target and crossing N6.405 trillion tax revenue threshold for the first time in the revenue history of our country.  The thrilling aspect of the achievement lies in the fact that almost 70% of the collection came from non-oil sources. The development of our country is a sacred and civic responsibility of every Nigerian and should involve everyone in this room.  

“Every aspect of our national development – security, infrastructure, social services, business-enabled environment, etc. depends on the national budget and the ability of the government to provide these itself depends on available revenue.  The onerous task of generating the required revenue rests squarely on the shoulders of the FIRS. Mr Chairman, distinguished ladies and gentlemen, “the reward for hard work is more work” and like Oliver Twist, Nigerians are asking that you do more, the government is asking that you do more, and I am asking that you do more.  I assure you of the government’s unflinching support as you make taxation the mainstay of government’s funding”.

Related Topics:
Continue Reading

Economy

Nigeria champions African-Arab trade to boost agribusiness, industrial growth

Published

3 days ago

on

December 5, 2025

By

The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.

The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.

The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.

He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.

“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”

Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”

The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.

With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.

Continue Reading

Economy

FEC approves 2026–2028 MTEF, projects N34.33trn revenue 

Published

3 days ago

on

December 4, 2025

By

Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.

The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.

He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.

Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.

The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.

Continue Reading

Economy

CBN hikes interest on treasury Bills above inflation rate

Published

3 days ago

on

December 4, 2025

By

The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%. 

The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.

Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.

The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.

Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.

Continue Reading

Trending