http://thenationonlineng.net/nigeria-can-generate-n8trillion-revenue-non-oil-sector-annually-study/

The nation’s non-oil sector has the potential to generate a minimum of N8rillion revenue annually.

This is the outcome of a study conducted last year by a cross-section of experts drawn from different walks of life.

According to the experts led by Omooba Olumuyiwa Sosanya, founding president, Association of National Accountants of Nigeria (ANAN) the only way the country can reduce it’s overdependence on oil revenue is to develop other streams of revenue generation that is not subject to the vagaries of the oil sector, which has had a run of misfortune as a result of the crash in crude oil prices in recent times.

Speaking on the outcome of the study, made available to our correspondent, Sosanya noted that one better way to do this is to look inwards and see how the country can improve it’s economic fortunes.


The group also expressed concerns over the loopholes and leakages in the non-oil sector, which if plugged would lead to effective collection and prompt remittance to the Consolidated Revenue Fund, especially if the proposed amendments to the offending provisions of the law are adopted.

A minimum of N8trillion can be realisable annually from this sector.

Pressed further, he said the team of experts discovered that one way to address the challenge of revenue depletion is through tax reforms.

In the opinion of the group, value added tax (VAT) has brought fortunes to most developed and some developing African countries such as South Africa and Ghana.

Lamentably, the group however argued that the Federal Inland Revenue Service (FIRS) appears overwhelmed and struggling to find its bearing to turn the administration of VAT into a goldmine for Nigerians.

While doing a comparative analysis of best practices, the researchers noted that “South Africa Revenue Services ( SARS) VAT collected in the fiscal year 2012/13 was R813.8bn ($65.5bn or N125.5trillion) from 40million population, our FIRS budgetted a miserable N861bn for the year 2014 from a population of 170million since the administration of VAT from 1993.

Besides, the group noted with dismay that the seeming revenue leakages in key sectors has had adverse effects on the nation’s economic fortunes thus far.

Citing best practices in other climes, the group noted that revenue generation of the Customs Service is under the administration of Tax offices, the UK, Her Majesty’s Revenue and Customs is in charge of taxes and custom duty.

Regrettably, the group noted that “Nigeria experience is that most revenue is generated into the private pockets of the relevant officials than government coffers.”

They however admitted that when the administration of customs duties are ceded to the FIRS, the expected revenue per annum will be over N3trillion.

Mynd44, Lalasticlala

Nigeria..........hmmmn, when the price of oil goes up, there wont be analysis again.