Economy

Nigeria’s Tax to GDP Ratio Rises to 8%

Published

6 years ago

30/08/2019

By Dipo Olowookere

Minister of Finance Budget and National Planning, Mrs Zainab Ahmed, has disclosed that the tax to Gross Domestic Product (GDP) of Nigeria is around 7 to 8 percent, which the Accountant said was too low for the country.

She made this disclosure recently in a television interview monitored in Abuja, where she highlighted how she plans to improve the economy of the country by formulating growth-driven policies.

During the interview, the Minister said the nation’s debt portfolio was not high as feared by some Nigerians, stressing that the problem confronting the economy was basically low revenue generation, not high debt profile.

According to her, efforts would be increased towards boosting non-oil revenue in order to bridge the gap and keep the debt to GDP ratio at a manageable level.

“We have to become more efficient in our revenue collection as well as enforcement. Tax to GDP is still 7 or 8 percent to GDP which is too low. Our ERGP target is 15 percent,” she said.

Mrs Ahmed declared that “we have to increase taxes and we have reduced our dependence on oil revenue. We have to increase our non-oil revenue.”

“We have to continue to emphasise our increase in non-oil revenue. Even as we try to maximize what we can’t from the oil revenue,” she added.

Explaining why the ministries of Finance and Budget and National Planning were merged by President Muhammadu Buhari, she said it was purely to ensure better coordination.

“There was the challenge of the implementation of the budget and there was this gap as to what was seen as a priority as seen by the Ministry of Finance and what was seen as the priority as seen by the Ministry of Budget and National Planning.

“Of course, the Ministry of Finance is the treasury so it always had its way because it was the one that was disbursing the funds.

“It created a significant strain and the President decided to bring back the Budget Office to the Ministry of Finance and brought the Planning to the Ministry so that we can maintain the positive trend of linking budget with plans,” the Minister said on the programme.

While admitting that her current mandate “is a very wide one,” she explained that she was already working out how things will work between the planning budget and finance.

“My role is to coordinate all these and make sure that, as much as possible, there are no delays in implementation.”

While commenting on the foreign exchange market in Nigeria, Mrs Ahmed said “there is still a gap and that gap is what we have to bridge and narrow as much as possible from 305 to 360.”

“That is one of our targets,” she stated while disclosing “we have been having a cordial working relationship with the monetary authorities but we have to do more.”

“We did a quick assessment on the ERGP’s impact on households. We have agreed that the priority will have to be agriculture and food security, power, petroleum, as well as, oil and gas, manufacturing, as well as, small and medium enterprises; and the alignment of the fiscal and monetary policies.

“Of course, security and fight against corruption and we added housing and financing of SMEs,” she said.

Mrs Ahmed also said that her team would work more closely with the monetary authorities for better coordination of the economy.

“As a result of the gaps, the monetary authorities are developing or implementing policies that ideally should have been done by the fiscal authorities. So, we have to bridge that gap.

“And maybe because there is not enough impetus from the fiscal side, the monetary authorities appear in some cases to be running faster than the fiscal.

“For me, we have been able to establish an excellent relationship with the CBN and working together, we have to determine things that have to do with tariffs, imports and exports,” she added.

Economy

Tinubu to Present 2026 Budget to National Assembly Friday

Published

26 minutes ago

18/12/2025

Adedapo Adesanya

By Adedapo Adesanya

President Bola Tinubu will, on Friday, present the 2026 Appropriation Bill to a joint session of the National Assembly.

The presentation, scheduled for 2:00 pm, was conveyed in a notice issued on Wednesday by the Office of the Clerk to the National Assembly.

According to the notice, all accredited persons are required to be at their duty posts by 11:00 am on the day of the presentation, as access into the National Assembly Complex will be restricted thereafter for security reasons.

The notice, signed by the Secretary, Human Resources and Staff Development, Mr Essien Eyo Essien, on behalf of the Clerk to the National Assembly, urged all concerned to ensure strict compliance with the arrangements ahead of the President’s budget presentation.

The 2026 budget is projected at N54.4 trillion, according to the approved 2026–2028 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).

Meanwhile, President Tinubu has asked the National Assembly to repeal and re-enact the 2024 appropriation act in separate letters to the Senate and the House of Representatives on Wednesday and read during plenary by the presiding officers.

The bill was titled Appropriation (Repeal and Re-enactment Bill 2) 2024, involving a total proposed expenditure of N43.56 trillion.

In a letter dated December 16, 2025, the President said the bill seeks authorisation for the issuance of a total sum of N43.56 trillion from the Consolidated Revenue Fund of the Federation for the year ending December 31, 2025.

A breakdown of the proposed expenditure shows N1.74 trillion for statutory transfers, N8.27 trillion for debt service, N11.27 trillion for recurrent (non-debt) expenditure, and N22.28 trillion for capital expenditure and development fund contributions.

The President said the proposed legislation is aimed at ending the practice of running multiple budgets concurrently, while ensuring reasonable – indeed unprecedentedly high – capital performance rates on the 2024 and 2025 capital budgets.

He explained that the bill also provides a transparent and constitutionally grounded framework for consolidating and appropriating critical and time-sensitive expenditures undertaken in response to emergency situations, national security concerns, and other urgent needs.

President Tinubu added that the bill strengthens fiscal discipline and accountability by mandating that funds be released strictly for purposes approved by the National Assembly, restricting virement without prior legislative approval, and setting conditions for corrigenda in cases of genuine implementation errors.

The bill, which passed first and second reading in the House of Representatives, has been referred to the Committee on Appropriations for further legislative action.

Economy

Nigeria Bans Wood, Charcoal Exports, Revokes Licenses

Published

4 hours ago

18/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The federal government has imposed an immediate nationwide ban on the export of wood and allied products, revoking all previously issued licenses and permits to exporters.

The announcement was made on Wednesday by the Minister of Environment, Mr Balarabe Lawal, during the 18th meeting of the National Council on Environment in Katsina State.

Mr Lawal said the directive, outlined in the Presidential Executive Order titled Presidential Executive Order on the Prohibition of Exportation of Wood and Allied Products, 2025, became necessary to curb illegal logging and deforestation across the country.

“Nigeria’s forests are central to environmental sustainability, providing clean air and water, supporting livelihoods, conserving biodiversity, and mitigating the effects of climate change,” the Minister said, warning that the continued exportation of wood threatens these benefits and the long-term health of the environment.

The order, published in the Extraordinary Federal Republic of Nigeria Official Gazette No. 180, Vol. 112 of 16 October 2025, relies on Sections 17(2) and 20 of the 1999 Constitution (as amended), which empower the state to protect the environment, forests, and wildlife and prevent the exploitation of natural resources for private gain.

Under the new policy, security agencies and relevant ministries are expected to enforce a total clampdown on illegal logging activities nationwide.

On his part, the Katsina State Deputy Governor, Mr Faruk Lawal Jobe highlighted the state’s history of pioneering socio-economic policies that have influenced national policy. He emphasized the importance of collaboration in addressing environmental challenges across the country.

“Environmental sustainability is critical to achieving growth and improving the quality of life of our people,” he said. “Our administration has prioritised initiatives aimed at combating desertification and promoting afforestation.”

The ban reflects the government’s commitment to safeguarding Nigeria’s shrinking forest cover and addressing climate change, while ensuring sustainable use of natural resources for future generations.

Economy

Unlisted Securities Bourse Appreciates 0.24% Midweek

Published

4 hours ago

18/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange rose by 0.24 per cent on Wednesday, December 17, pulling the Unlisted Security Index (NSI) up by 8.62 points to 3,614.64 points from 3,606.02 points.

In the same vein, the market capitalisation added N4.72 billion to close at N2.164 billion compared with the N2.160 trillion it ended on Tuesday.

The growth was inspired by four securities, which finished on the gainers’ log, neutralising the losses printed by two other securities on the trading platform.

MRS Oil Plc gained N17.90 on Wednesday to end at N196.90 per unit versus N179.00 per unit, NASD Plc appreciated by 59 Kobo to N58.50 per share from N57.91 per share, FrieslandCampina Wamco Nigeria Plc added 15 Kobo to sell at N60.19 per unit versus N60.04 per unit, and Industrial and General Insurance (IGI) Plc rose by 6 Kobo to 64 Kobo per share from 58 Kobo per share.

On the flip side, Golden Capital Plc extended its loss by 76 Kobo to end at N7.75 per unit versus N8.51 per unit, and Central Securities Clearing System (CSCS) Plc slipped by 35 Kobo to N39.65 per share from N40.00 per share.

Yesterday, the volume of transactions increased by 737.3 per cent to 20.4 million units from 2.4 million units, but the value of trades fell by 33.8 per cent to N72.2 million from N109.1 million, and the number of deals slid by 62.5 per cent to 21 deals from 56 deals.

Infrastructure Credit Guarantee Company (InfraCredit) Plc remained the most traded stock by value on a year-to-date basis with 5.8 billion units sold for N16.4 billion, the second position was occupied by Okitipupa Plc with 178.9 million units transacted for N9.5 billion, and the third place was taken by MRS Oil Plc with 36.1 million units worth N4.9 billion.

InfraCredit Plc was also the most traded stock by volume on a year-to-date basis with 5.8 billion units traded for N16.4 billion, followed by IGI Plc with 1.2 billion units valued at N420.7 million, and Impresit Bakolori Plc with 536.9 million units worth N524.9 million.