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Non-oil sector projected to contribute N1.7trillion in 2013

By on March 11, 2013

Nigeria’s non oil sector is projected to rake N1.742 trillion into the national treasury, going by estimates in the recently signed 2013 budget.

Presenting a budget breakdown in Abuja, Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala said this represents an 8.13 per cent increase over the N1. 611 trillion earned from the sector last year.

Okonjo-Iweala put projected Gross Federally Collectible Revenue at N11.339 trillion, compared with the N9.682 trillion accruals in 2012, with oil revenues accounting for N2.358 trillion as against the N1.949 trillion accruals in 2013, representing 58 per cent of the revenue earnings from the sector.

Also, the total Federal Government’s retained revenue is estimated at N4.1 trillion as against N3.561 trillion in 2012.

A further decomposition of the non-oil revenue indicated that Value Added Tax will generate N107.90 billion as against N127.05 billion in 2012 to government coffers compared to the N457.12 billion targeted from Companies Income Tax (CIT) and Independent revenue figures of N455.78 billion, an amount which is higher about N9.0 billion of the N446.78 billion earned from the source in the previous year.

According to the Minister, “this Budget promotes the continuity of the four main pillars on which the 2012 Budget was based namely: Macroeconomic stability, Structural reforms, Governance and institutions, and Investing in priority sectors.

“This Budget continues the theme of fiscal consolidation with inclusive growth and is underpinned by the following parameters: Oil production of 2.53 million barrels per day compared to 2.48 million barrels per day in 2012; Benchmark oil price of $79 per barrel, up from $72 per barrel in 2012; Projected real GDP growth rate of 6.5 per cent; average Exchange Rate of N160/$.

“Based on the above assumptions, the gross federally collectible revenue is projected at N11.34 trillion, of which the total revenue available for the Federal Government’s Budget is forecast at N4.1 trillion, representing an increase of 15 per cent over the estimate for 2012. Non-oil revenue is projected to sustain its growth in 2013.

“At this point, let me commend the Federal Inland Revenue Service (FIRS) which has worked hard to achieve a 20 percent growth rate in non-oil tax revenues between 2007 and 2012. But I also believe that the gap between non-oil tax revenues currently collected and the full potential revenue remains significant.

“Therefore, we will support FIRS this year to embark on further reforms such as improving auditing checks, increasing controls on exemptions, and enforcing repayment of arrears. Similarly, we will also pay greater attention to increasing internally generated revenues, and work with government entities to increase their remittances to the Treasury”, Okonjo-Iweala explained further.

 

[Daily Independent]