News

Nigeria running on low budget; Chair Presidential cttee on fiscal policy

November 19, 2024

Nigeria running on low budget; Chair Presidential cttee on fiscal policy

Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, on Monday, sounded the alarm on Nigeria’s budget, stating that it is insufficient to fund meaningful development.

Speaking at an interactive session organized by the House of Representatives on tax reform bills, Oyedele emphasized that the country’s budget pales in comparison to those of its African counterparts, such as Kenya and South Africa, which have smaller populations.

CISLAC urges increased budget for PWDs in Nigeria

Bauchi assembly passes N135bn 2024 LGA consolidated budget

“I will put it bluntly. Nigeria is running on a low budget,” Oyedele said, highlighting the stark reality. The 2024 appropriation Act and supplementary budget stand at approximately N35 trillion, with the combined budget of all states totaling N15.9 trillion. When combined, Nigeria’s total budget amounts to N51.1 trillion, equivalent to a mere $32 billion.

To put this into perspective, Oyedele noted that Kenya’s budget for 2024 is identical to Nigeria’s, despite having a significantly smaller population of 54 million people.

South Africa’s budget, on the other hand, dwarfs Nigeria’s, standing at $130 billion for 2024, with a population of just over 60 million.

“How is it that Nigeria, with all its potential, knowledge, experience, and human capital, has a budget barely the size of Kenya’s?” Oyedele asked, pointing to the glaring disparity. He emphasized that Nigeria’s budget is insufficient to address critical development needs, such as transportation, roads, and rail.

Oyedele identified eight major revenue sources for Nigeria, including personal income tax, property tax, and value-added tax, which are primarily controlled by the states. The remaining three revenue sources – corporate income tax, customs duties, and petroleum and solid minerals revenue – are shared among federal, state, and local governments.

The World Bank has also weighed in on Nigeria’s fiscal challenges, noting that the country needs to increase its spending to promote economic development. With a revenue-to-GDP ratio of 7% in 2021, Nigeria’s fiscal revenues are among the lowest in the world.

The bodies contend that to address this, the government must implement revenue-enhancing reforms, such as increasing tax rates, improving tax administration, and phasing out inefficient subsidies.

__________________

We do hope that the information we were able to provide you are helpful. Checkout out other unique articles on our blog for more detailed information and do well to share with your friends and family. Follow us on our Twitter and Facebook to stay updated with premium information.

Please leave any comments or questions in the area given below.

DISCLAIMER: The views and opinions expressed in Fact Check are those of the authors and do not necessarily reflect the official policy or position of Fact Check. Any content provided by our bloggers or authors is of their opinion and is not intended to malign any religion, ethnic group, club, organization, company, individual, or anyone or anything.

Information is presented to the best of our knowledge and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability concerning the website or the information, products, services, or related graphics contained on the website for any purpose. Therefore, any reliance you place on such information is strictly at your own risk.