Nigerian government has set out an ambitious N10.737 trillion revenue in the harmonised 2017 Appropriation bill passed by the Senate and House of Representatives. This year’s revenue target is N1,021,909,265,105 higher than the N9,715,191,102,480 gross federally collectible revenue set in 2016 fiscal year.
The bill alongside the details are expected to be transmitted to the Presidency by Abubakar Sani-Omolori, Clerk of the National Assembly (CNA) this week, BusinessDay gathered at the weekend.
Nigeria which is rated as the lead economy in Africa, is highly dependent on proceeds from oil.
Breakdown of the expected net revenue from oil and gas sources for this year was pegged at N5,029,448,769,771 against N1,700,563,745,466 set in 2016.
In addition, estimated sum of N5,339,128,710,209 revenue is expected through the non-oil sector for this year against N5,967,008,58,787 set target for 2016.
But with the resolution of Nigeria’s government to opt out of joint venture arrangement with OICs, government’s contribution to the cost of oil production in 2017 was reduced to N305 billion from N1,094,315,300,000 in 2016.
Meanwhile, the balance of oil and gas revenue available for Federal Allocation Account Committee (FAAC) increased from N,1,700,563,745,556 in 2016 to N4,375,620,426,701 in 2017.
On the expected revenue through dividends from public owned institutions the sum of N61 billion is projected from Nigeria Liquified Natural Gas (NLNG) Limited in 2017 against N197 billion in 2016; while no revenue was scheduled from Power Generating Companies (GENCOs), Transmission Companies and Distribution Companies (DISCOs) for both 2016 and 2017.
From the total sum of N5,339,128,710,209 revenue target for 2017 fiscal year, Federal Inland Revenue Service (FIRS) is to generate N3,760,984,979,719.
On the subsidy expenditure on premium motor spirit (PMS), zero allocation was approved by the National Assembly for 2017 against the N150 billion provided in 2016 to offset 2015 domestic consumption.
The sum of $320 million (N97.600 billion) looted funds expected to be repatriated through the Swiss government also form part of the revenue expected by the present administration to fund this year’s budget with a deficit of N2,321,773,720,940.
From the total new borrowing of N2,321,773,720,940, the sum of N1,254,273,720,940 is to be sourced domestically while N1,067,500,000,000 is to be sourced through foreign borrowing.
KEHINDE AKINTOLA, Abuja
