Fiscal Policy in Nigeria: Revenue mobilization remains challenged

Must Read

Access Bank Plc Appoints Dr (Mrs) Ajoritsedere Awosika As Board Chairman; Mosun Belo-Olusoga steps down

The Board of Directors of Access Bank Plc is pleased to announce that its Chairman, Mrs. Mosun Belo-Olusoga will be retiring...

Kirusa Nigeria’s Country Manager Opens Up On Work-Life, Communication And Tech Adoption In Nigeria

Kirusa, is a global leader in communication solutions over data networks for consumers and enterprises, one of its key...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -
- Advertisement -

Nigeria’s fiscal operation is constrained by poor revenue mobilization despite efforts of the Government. In Q1-19, retained revenue of the government tumbled 28.8%q/q and 9.7% y/y to N798.8bn, no thanks to weaker oil revenue, which continued to fall short of the provisional budget estimate due to the vagaries of oil production and prices.

On the other hand, all non-oil revenue subcomponents underperformed due to lower collection compared to the provisional monthly budget estimate, amid shortfalls in Corporate Tax, VAT, FGN Independent Revenue and Education Tax.

Fiscal Policy in Nigeria: Revenue mobilization remains challenged

Meanwhile, fiscal deficit has overshot the monthly budgeted benchmark by 142.1% on the average. According to the Debt Management Office (DMO), total debt stock rose 8.7% y/y to N24.0tn as at Dec18. In H1-19, the DMO issued two new bonds, including the debut 30yr Bond (worth N50.0bn in two tranches) and the 2nd tranche of the Green Bond
worth N15.0bn. Alongside the fresh issuances, over N500.0bn worth of debt was raised in the bond market in H1-19 alone, to fund government deficit.

Read:  Official Ceremony: DMO Lists Debut N10.69 Billion Green Bond on The Nigerian Stock Exchange (Pictures)
Read:  November 2019 FGN Savings Bond Offer for Subscription

In H2-19, the fiscal operation is expected to remain broadly the same, amid weak revenue framework. As such, the FG’s cost of servicing debt should remain elevated even as non-debt recurrent spending continue to rise due to the new minimum wage implementation. We imagine that efforts to ramp-up non-oil revenue should be sustained to cover up volatile oil revenue.

United Capital Plc Research (UCR)

- Advertisement -

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

What are the least developed countries?

Geneva, Switzerland, (19 November 2019) - There are 47 countries currently designated by the United Nations as least developed...

Galaxy Entertainment Group Introduces Galaxy International Convention Center and Galaxy Arena – Asia’s Ultimate Integrated Resort & MICE Destination in Macau

BARCELONA, SPAIN - Media OutReach - 19 November 2019 - Galaxy Entertainment Group (GEG), Macau's leading integrated resort,...

Boutir’s Facebook Extension Workshop in Kuala Lumpur

Brought Together Merchants to Drive Regional Connectivity KUALA LUMPUR, MALAYSIA - Media OutReach - 19 November 2019 -  Boutir Limited, a leading social mobile commerce solutions provider and multi-channel...

FBNQUEST Asset Management Receives Award For Money Market Fund Of The Year

FBNQuest Asset Management, a subsidiary of FBNQuest Merchant Bank and part of FBN Holdings Plc., which is one of the leading financial services groups...

More Articles Like This