The federal government of is gearing up to enact an emergency economic bill aimed at bolstering revenue streams from the non-oil sector.
Minister of finance and coordinating minister of the economy, Wale Edun, unveiled this strategy during a presentation at the Lagos Business School (LBS) Breakfast Club.
Edun highlighted that the proposed bill is in its final stages and is designed to fortify non-oil revenue through several strategic measures. These measures include broadening the tax base, enhancing compliance, automating excise tax processes, reassessing tax exemptions and duty waivers (which currently account for 1 per cent of GDP), and adjusting incentive structures.
Furthermore, chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, disclosed that his committee has formulated a new tax regulation to amend existing laws. Oyedele emphasised that the delay in publishing this regulation stems from the incorporation of amendments into the emergency bill, awaiting approval by lawmakers.
Oyedele also underscored the potential for Nigeria to generate substantial revenue, estimated at N10 trillion annually, through effective management of its non-oil assets.
He noted that despite their considerable value, ranging between N80 trillion and N100 trillion, these assets have been largely overlooked and mismanaged.
The latest data from the National Bureau of Statistics(NBS) reveals that the non-oil sector contributed approximately 95.30 per cent to Nigeria’s GDP in the final quarter of 2023. Although this figure is slightly lower than the 95.66 per cent recorded in the same period of 2022, it marks an improvement over the 94.52 per cent recorded in the third quarter of 2023. Notably, the non-oil sector witnessed a growth rate of 3.07 per cent in real terms during this period.
