Oil Price Fall: Government Revenue To Fall By 25% – Analysts

Following the slump in the price of crude oil, which accounts for 94 per cent of Nigeria’s export revenue, the revenue generated by the Federal Government’s revenue has been predicted to decline further by 21-25% in the first quarter of 2015.

This was stated by the Managing Director, Financial Derivatives, Mr. Bismarck Rewane, while delivering a keynoted address at a seaside breakfast meeting organised by Remita in Lagos with the topic: “Declining Revenues: Time for new Ideas”.

He explained that EIU projects a decline of over $10.5billion to $27.5bn in 2015 which will lead the current account balance to decline by 75per cent ($3.9b).

Rewane noted that decline in prices of other commodity was unlikely to cushion the effect of lower oil exports on the balance of trade with its attendant bleak economic consequences, calling on government to block leakages in the economy.

He said that Information and Communication Technology (ICT) is one of the tools that can be used to increase tax revenue collection, and that ICT has the potential to transform tax revenue collection and improve services to tax payers.

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