FG Moves To Increase Revenue To 15% Of GDP

The federal government has disclosed plans to increase its revenue to 15 per cent of Gross Domestic Product by 2025.

The government disclosed this in its National Development Plan 2021-2025, adding that it would increase revenue in order to reduce the deficit-to-GDP ratio.

According to it, “Government will finance the plan directly from budgetary provision as approved by the National Assembly.

”To ensure fiscal sustainability, efforts will be geared towards enhancement of domestic resources mobilisation, especially in enhancing non-oil revenue within the planning period to avoid undue fiscal shock in financing the plan.

“The target is to increase national government revenue up to 15 per cent of GDP at the end of 2025 to reduce the deficit-GDP ratio with the implementation of the recently launched ‘Strategy for Revenue Growth Initiatives’.

The government maintained that it would continue to borrow and explore other financing sources to finance its deficit within the period.

The government expenditure during the plan period will be N49.7tn, with N29.6tn to be provided by the Federal Government while the subnational governments (states) will provide N20.1tn.

The country’s GDP stood at $432.3bn (N164.71tn) in 2020, according to the World Bank.

Meanwhile, the nation’s economy grew more slowly in the third quarter of the year than it did in the second quarter.

Primebusiness.africa obtained this from the fresh report released by the National Bureau of Statistics on Thursday, November 18.

In the report, Simon Harry, Statistician- General of the Federation, announced that Gross Domestic Product growth rate fell to 4.03 per cent in Q3 from 5 per cent in Q2.