Nigeria’s Fiscal Adjustment: A Necessary Evil?

Must Read

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

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

List of Access 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...

CBN Revises Timelines for Dispense Errors, Refund Complaints

The Central Bank of Nigeria (CBN), in its determination to further enhance service quality, particularly quick refunds when customers experience...
Nigeria’s Fiscal Adjustment: A Necessary Evil?Nigeria’s Fiscal Adjustment: A Necessary Evil?

Recently, both the fiscal and monetary authorities in Nigeria seem to agree on one thing – “There is a Revenue problem.” This was exacerbated by the upward revision in the minimum wage to N30,000. At the previous N18,000, many of the 36 sub-national governments which are not viable for debt issuance, are struggling with salary payment.

Meanwhile, for the Federal Government (FG), the headroom for borrowing is thinning out amid consistent oil revenue shortfalls. The rising debt concern amid growing expenditure profile seemed to be compelling the FG to consider some fiscal adjustment, going forward. Notably, the fiscal team have rolled-out plans to ramp up non-oil revenue via increase in tax revenue and debt recovery while pushing for a cost reflective tariff in the power sector, to lessen the burden of government’s intervention.

Specifically, the Minister of Finance has announced plans to increase Value Added Tax from 5.0% to 7.5% by 2020. At 7.5%, VAT in Nigeria would still be significantly lower, compared to its African peers – with an average standard rate of 15.8%. Thus, looking at current realities, the ongoing fiscal adjustments are a necessary evil for revenue growth and fiscal expansion which can support investment in infrastructure.

- Advertisement -
Nigeria’s Fiscal Adjustment: A Necessary Evil?Nigeria’s Fiscal Adjustment: A Necessary Evil?

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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Read Also:  MTN Foundation Equips Music Scholars

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

Nigeria’s Fiscal Adjustment: A Necessary Evil?Nigeria’s Fiscal Adjustment: A Necessary Evil?

Latest News

Nigeria: Manufacturing PMI drops to 42.4

The Manufacturing Purchasing Managers’ Index (PMI) for May dropped to 42.4 from 51.1 points in March. This is the...

Zenith Bank Emerges Best Bank in Nigeria In The Global Finance World’s Best Banks Awards 2020

Zenith Bank Plc, Nigeria’s leading financial institution, has emerged as the Best Bank in Nigeria in the recently released Global Finance Magazine World’s Best...

Google Launches ‘Plus Codes’ to identify locations without addresses

While most people take having a fixed, physical address for granted, 2 billion people across the globe either don’t have an address or have...

Kings of Finance: GTBank Named Africa’s Most Admired Finance Brand

Guaranty Trust Bank plc has been ranked Africa’s Most Admired Finance Brand in the 10th-anniversary rankings of Brand Africa 100: Africa’s Best Brands, the pre-eminent...

CBN Revises Timelines for Dispense Errors, Refund Complaints

The Central Bank of Nigeria (CBN), in its determination to further enhance service quality, particularly quick refunds when customers experience failed transactions, dispense errors or disputes...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Nigeria’s Fiscal Adjustment: A Necessary Evil?Nigeria’s Fiscal Adjustment: A Necessary Evil?