Non-oil sector anticipates N3.8tr, oil sector N160m
By Jeph Ajobaju, Chief Copy Editor
Non-oil sector reform is expected to raise its revenue to N3.8 trillion yearly, tonnes of wads of banknotes more than N160 billion anticipated from the oil sector, now a relegated cash cow, according to Finance Minister Zainab Ahmed.
She made the projection after presenting to the Federal Executive Council (FEC) a report on “Accelerating Revenue Moblisation Reforms as a Derivative of Federal Government’s Strategic Revenue Growth Initiative”.
A statement issued by Laolu Akande, Senior Special Assistant to the President on Media and Publicity, quoted Ahmad as enthusing that the reform will boost treasury receipts in the non-oil sector.
“Among several on the memos presented was the one by the Minister of Finance, Budget and National Planning on Accelerating Revenue Moblisation Reforms which is a derivative of Federal Government’s Strategic Revenue Growth Initiative.
“The significant progress that has been made in that initiative includes the raising of the Value Added Tax (VAT) from five per cent to seven per cent and other measures since 2019,” the statement explained.
“This particular initiative is something meant to address some of the fiscal challenges of the Federal Government as it is intended to raise Nigeria’s non-oil revenue potential.
“So, it is estimated that with the implementation of this reform, it would result in a potential additional non-oil revenue and oil revenue generation of N3.8 trillion annually for non-oil revenue and N160 billion for oil revenue.’’
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Prevention of cyber crime
Other reports presented at the FEC meeting included a memo from federal Attorney General Abubakar Malami on the assent of Nigeria to the Budapest Convention on Cyber Crime, according to the statement, as reported by Nairametrics.
The convention is a comprehensive national legislation against cybercrime as a framework for technical assistance as well as international cooperation between state parties to it.
“The Minister for Water Resources also presented a memo for the implementation of Federal Government’s component for the execution of rehabilitation, expansion and upgrading of Gombe regional water supply project under the Nigeria National Water Resources.”
Non-oil sector
Non-oil sector grew 6.08 per cent year-on-year (YoY) in real terms in the first quarter ended March (Q1 2022), a 5.28 points increase above 3.58 per cent in Q1 2021 and 1.34 per cent points higher than Q4 2021.
Non-oil sector contributed 93.37 per cent to Gross Domestic Product (GDP) in Q1 2022, greater than 90.75 per cent in Q1 2021 but lower than 94.81 per cent in Q4 2021.