The Federal Government is aiming to generate of N311bn from privatisation of public properties and the sale of national assets next year to partly finance the 2018 budget.
According to the Minister of Budget and National Planning, Udo Udoma who stated this during a public presentation of the 2018 budget proposals in Abuja today said that the sum of N306bn was being expected from privatisation proceeds, while the balance of N5bn would come from the sale of government assets.Udoma also said the amount was part of the financing items of N6.6tn that would be used to fund the 2018 budget of N8.6tn.
Udoma while Giving a breakdown of the expected sources of revenue, he stated that crude oil would contribute 37 per cent of the total revenue for the budget, adding that Companies Income Tax, Value Added Tax and customs duties would account for 12 per cent, 3.1 per cent and 4.9 per cent, respectively of the projected revenue for the 2018 fiscal year.
Udoma said the 2018 revenue projection reflected new funding mechanism for Joint Venture operations, allowing for cost recovery in lieu of the previous cash call arrangement.
He added that there would be additional oil-related revenues, including royalty, new marginal field licences, early licensing renewals and a review of fiscal regime for oil production sharing contracts.
In addition, the minister said there were plans to increase excise duty rates on alcohol and tobacco, noting that this would help improve the revenue performance of the government.
Udoma, however, lamented that independent revenue did not perform according to target as only N155.14bn, which was just 20 per cent of the target, was remitted by agencies of government.He also added, as a result of the poor performance of the agencies, the Federal Government was considering a review of their operational efficiency to make them more fiscally responsible.
The minister said for the 2018 capital projects, the government would carry out huge projects in transportation; power, works and housing; health; water resources; agriculture and rural development; mines and steel development; industry, trade and investment; and education, among others.
Also speaking at the event, Adeosun stated that the government would continue to come up with reforms that would boost tax revenue.She stated that the current administration did believe in granting tax waivers to businesses, noting that rather than giving waivers, it was working on how to make the investment climate friendlier for enterprises to thrive
The Finance minister blamed the country’s low tax paying culture for the failure of previous administrations to emphasise the collection of taxes because of the huge money that the country was making from oil revenue. She said now that oil revenue was no longer coming like it was in the past, there was a need to look inwards on how to raise the country’s tax to Gross Domestic Product ratio above the current six per cent.
Adeosun also lamented that out of the estimated 69 million working population in the country, only 14 million of were actually paying taxes, a situation she described as unacceptable.
Present at the event were the ministers of Education, Adamu Adamu; Finance, Mrs. Kemi Adeosun; Information, Alhaji Lai Mohammed; Petroleum Resources, Dr. Ibe Kachikwu; and the Head of the Civil Service of the of the Federation, Mrs. Winifred Oyo-Ita, among others