By Modupe Gbadeyanka
At least N710 billion is expected in 2018 from the restructuring of government’s stake in the various Joint Ventures oil assets.
The Debt Management Office (DMO), while reacting to the downgrade of Nigeria from a B1 stable to a B2 stable rating by Moody’s Investors Service Research, stated that this planned exercise has been included in the 2018 budget proposal presented to the National Assembly by President Muhammadu Buhari on Tuesday.
DMO explained that this move will increase private sector equity participation to improve efficiencies in the sector and also provides revenue to the government which will be deployed solely and exclusively for creating new assets in Nigeria.
“We have seen improvements in revenue in 2017. Fiscal revenues are linked directly to both the performance of the economy and the number of tax payers contributing.
“As a result of the foundation that has been established in 2017, we expect, similar positive trends in 2018.
“Our revenue initiatives are changing the mix of revenue sources available to government from the traditional oil or debt to a combination of oil, debt and domestic revenue.
“For example, the 2018 budget includes N710 billion proceeds from the restructuring of the government’s equity in the JV oil assets.
“The reform is aimed at increasing private sector equity participation to improve efficiencies in the sector and also provides revenue to the government which will be deployed solely and exclusively for creating new assets in Nigeria,” the debt office said in the statement released on Thursday.
Leading oil firms like Royal Dutch Shell, Chevron and ExxonMobil, operate in Nigeria through joint ventures with the Nigerian National Petroleum Corporation (NNPC).
President Buhari, during his presentation of the N8.6 trillion 2018 budget, told the parliament that, his administration targets a total of N4.165 trillion revenue from the non-oil sector and this include “Share of Companies Income Tax (CIT) of N794.7 billion, share of Value Added Tax (VAT) of N207.9 billion, Customs & Excise Receipts of N324.9 billion, FGN Independently Generated Revenues (IGR) of N847.9 billion, FGN’s Share of Tax Amnesty Income of N87.8 billion, and various recoveries of N512.4 billion, N710 billion as proceeds from the restructuring of government’s equity in Joint Ventures and other sundry incomes of N678.4 billion.”
