The Federal Government plans to streamline its non-oil revenue target through a bill to be presented to lawmakers.
Finance Minister Mr Wale Edun spoke on this at the Lagos Business School (LBS) Breakfast Club on Monday.
The Emergency Economic Bill will soon be tabled before the National Assembly, he said.
According to a tweet from the Presidency, the bill aims to significantly increase non-oil revenue streams by curbing the country’s overreliance on oil revenue as the mainstay of the economy.
Fluctuations in global oil prices have had a crippling impact on the national budget. The need to diversify revenue sources and strengthen the non-oil sector is now necessary for long-term economic stability.
According to the finance minister, the Federal Government is “finalising an Emergency Economic Bill, which will, in part, enhance non-oil revenue. The new bill will expand the tax base, improve compliance, automate excise tax; review tax exemptions and duty waivers (one per cent of GDP); and recalibrate incentive structure e.g. post-ante”.
The bill’s multi-pronged approach to boost non-oil revenue could involve identifying and registering new taxable entities within the economy, potentially including informal businesses; there will be measures to improve tax collection efficiency and reduce tax evasion; automating excise tax collection that could streamline the process, reduce loopholes, and improve revenue collection.
Other measures are that the government will likely scrutinise existing tax breaks and waivers to ensure they are necessary and not creating undue loss of revenue.
The review could lead to the elimination or modification of certain exemptions; the bill will propose changes to existing tax incentives, to ensure they are delivering the intended benefits and not creating unintended consequences.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele, confirmed the proposed bill to The Nation.
According to him, an update on the proposed emergency economic bill will be announced in a matter of weeks, stressing the urgency for non-oil revenue growth.
He estimates that Nigeria could potentially generate N10 trillion annually through efficient management of its non-oil assets, currently valued between N80 trillion and N100 trillion.
Oyedele highlighted the need to address mismanagement and unlock the full potential of government assets.
When passed after lawmakers’ scrutiny and signed by the President, the implementation of the law will be a crucial step towards reducing Nigeria’s dependence on oil revenue and fostering a more diversified and resilient economy.
