The Federal Government said on Thursday that it had commenced the review of the cost profile of all its revenue generating agencies.
Speaking at a two-day National Revenue Retreat in Kano, the Minister of Finance, Mrs Kemi Adeosun, said that the measure was necessary in order to ensure that maximum operating surpluses were declared and remitted in compliance with the Fiscal Responsibility Act.
The retreat was organised by the Ministry of Finance as part of government’s effort to brainstorm on how to shift emphasis from oil to non-oil revenue.
Adeosun said that the measure was necessary in order to ensure that maximum operating surpluses were declared and remitted in compliance with the Fiscal Responsibility Act.
She said that the ministry had commenced a number of audits of a range of agencies that would provide the government improved visibility into the revenue and cost profiles.
“This will enable us to generate an indicative cost profile that can be used to establish reasonable budget targets going forward,” she said.
The minister stressed that the focus was now on non-oil revenue generation, adding that exploiting solid minerals and agricultural sectors of the economy was necessary so as to take full advantage of the value opportunities.
According to her, the country must improve its revenue collection efforts as our revenue to GDP ratio is far lower than that of ours peers.
“Nigeria’s tax to GDP is only six per cent versus 26 per cent in South Africa and 21 per cent in Tunisia. This is actually good news as it reflects the opportunity for growth,” she said.
(NAN)