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Recent stats from the Nigerian Communication Commission (NCC) shows a new fountainhead in telecoms. Accounting for 14.30% in the second quarter and surpassing oil by 5.37%, could Nigeria have overlooked this sector in her quest for diversification?
Marijuana has grown to become a cash crop of international value and might soon dominate oil, the global trade
Between January to May 2020, Nigeria spent ₦1.07 trillion on debt servicing. This is revealed in the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) presentation of the Minister of Finance, Budget and National Planning, Ms. Zainab Ahmed.
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In the first quarter of 2020, the Federal Government made N950.56 billion in revenue. Of this amount, N943.12 billion went into debt servicing, representing 99 percent of the total revenue. But policymakers have attributed the issue to revenue shortfall than debt servicing. Arising from these is the problem of revenue leakages, sharp practices from tax administrators, and lack of institutional framework.
Disbursement data from the Federation Account Allocation Committee (FAAC) between January and April 2020 has revealed the true state of Nigeria’s account in 2020. From the data sourced from the National Bureau of Statistics, total allocation declined by 9.63 percent between January and February. Between February and March, another 10.16 percent decline in total allocation was recorded. However, the total allocation appreciated by over 34 percent between March and April.
Nigerian states’ journey to fiscal sustainability is still far ahead, 2019 Internally Generated Revenue (IGR) Data by the National Bureau of Statistics (NBS) has shown. According to the IGR report, all the thirty-six states and the FCT generated a total of ₦1.33 trillion. This amount represents about 50 percent of the federal allocation known as FAAC. The total FAAC shared to the states in 2019 stood at ₦2.5 trillion.
For Today’s Numbers to Ponder, Nigeria could raise at least N2.5 trillion revenue by increasing consumer credit in the housing sector to help cushion the effect of COVID-19 crisis on the economy. Dataphyte analysis also estimated that this would provide shelter for about 20 million Nigerians that need decent homes. In Lagos, the state’s health commissioner, Prof Akin Abayomi, says confirmed coronavirus cases in the state may increase to 120,000 between July and August 2020. More funds on the COVID-19 support programme as the office of the Accountant-General of the Federation announced that pandemic dedicated accounts had climbed to N697 million as of April 30, 2020..
The failure to publish the Audit Report in a timely manner and non-disclosures of broad parameters of fiscal policies continue to affect Nigeria’s ranking on budget transparency. A new survey by the International Budget Partnership has shown.
Nigeria is indeed in a bad form. As COVID19 has made the world shut down, demand for oil has dwindled. This has affected the oil market. Crude oil constitutes 80% of Nigeria’s revenue and the country did not grow the capacity to collect taxes when it could.
Unlike the usual deficits that define the national budgets, the Petroleum Technology Development Fund (PTDF) has recorded an accrued surplus of unused funds for capital expenditures and capacity building programmes totalling N62 billion by 2016. However, the recurrent expenses increased by 137% from N3.85 billion to N9.14 billion between 2012 and 2016.
The federal government has deemed it fit that two thousand naira (N2,000) would be enough in the year 2020 to provide for the healthcare of each of the estimated 200 million Nigerians. This is according to the meagre 427.3 billion naira being budgeted for Healthcare in the proposed 2020 national budget.
