Revenue from non-oil sources is expected to double the revenue generated from oil sources in 2018.
While presenting the 2018 appropriation bill of N8.6 trillion to a joint session of the national assembly, President Muhammadu Buhari said oil revenue is projected at N2.442 trillion while non-oil revenue is projected at N4.165 trillion.
The president said the federal government’s estimated total revenue was N6.607 trillion in 2018, about 30 percent more than the 2017 target.
“As we pursue our goal of revenue diversification, non-oil revenues will become a larger share of total revenues. In 2018, we project oil revenues of N2.442 trillion and non-oil as well as other revenues of N4.165 trillion,” he said.
The president said non-oil and other revenue sources of N4.165 trillion would include the share of company income tax (CIT) of N794.7 billion, value-added tax (VAT) of N207.9 billion as well as customs and excise receipts estimated at N324.9 billion.
“Others are independently generated revenues (IGR) of N847.9 billion, federal government’s share of tax amnesty income of N87.8 billion and various recoveries of N512.4 billion,” he said.
“It also includes N 710 billion as proceeds from the restructuring of government’s equity in joint ventures and other sundry incomes of N678.4 billion.”
According to the president, based on the total federally-collectable revenue estimated at N11.983 trillion in 2018, the three tiers of government shall receive 12 percent more revenues than the 2017 estimates.
Kemi Adeosun, minister of finance and Godwin Emefiele, governor of the Central Bank of Nigeria, had previously reiterated the need to diversify the economy with the former embarking on various programmes to improve tax education and tax compliance.
An example of such is the Voluntary Assets and Income Declaration Scheme (VAIDS), which gives tax defaulters a grace period to pay their tax debts without fear of prosecution.