Yet despite very low revenue, they are adding more debt...

Nigeria’s revenue-to-Gross Domestic Product ratio, which fell to between five and six per cent last year, is the lowest in the world, the World Bank said on Monday.

The Country Director for Nigeria, World Bank, Dr Shubham Chaudhuri, said this during a panel session at a virtual public sector seminar with the theme ‘Nigeria in challenging times: imperatives for a cohesive national development agenda’ organised by the Lagos Business School.

Chaudhuri, who stressed the need for private investment for the country to realise its potential, said the private sector in the country ‘is struggling to breathe’.

“In Nigeria, I think the basic economic agenda is about diversification away from oil because oil has really been like resource curse for Nigeria on multiple dimensions,” he said.

He noted the aspiration of the President, Major General Muhammadu Buhari (retd.), to lift 100 million Nigerians out of poverty by the end of the decade.

He said, “Nigeria is a country with tremendous potential. If you look at the synopsis for this panel, it suggests that Nigeria is at a critical juncture – almost at the moment of crisis.

“Despite all of that, Nigeria is still the largest economy in Africa. So, just think about the potential that Nigeria has because of its natural resources, but more than that, because of its dynamism and all of its population. Nigerians are more entrepreneurial by nature.

“No country has become prosperous and realised its potential, eliminated poverty without doing two simple things: investing in its people, and unleashing the power of the private sector in creating jobs by investing and growing business. And then, of course, the basic function of the state is to provide security and law and order.”

According to Chaudhuri, to invest in people entails basic services, basic education, primary healthcare and nutrition, among others.

He said, “On this, Nigeria at the moment ranks sixth from the bottom in terms of the human capital index that we produce every year.

“So, obviously, there is a huge agenda in terms of investing in human capital. Nigeria spends more on PMS (premium motor spirit) subsidy than it does on primary healthcare in a year, and we know who the PMS subsidy is benefitting.”

He indicated that despite the country’s huge potential to attract private capital, the non-oil part of the economy ‘is not growing that robustly and certainly not generating revenues that the government needs’.

Chaudhuri said, “So, we see as priorities investments in human capital. But for that, one needs revenues. And there again, Nigeria unfortunately has the distinction of having about the lowest revenue-to-GDP ratio in the world.

“In Nigeria, it was eight per cent in 2019. In 2020, in the middle of the COVID-19 crisis and with the fall in oil prices, that went down to about between five and six per cent.

“So, domestic revenue mobilisation is huge. And then the third is enabling the space for private investment. You have to fix the power problem. Power is like the oxygen of an economy. In Nigeria, the private sector is struggling to breathe.”

Revenue situation is very weak – Finance minister

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, who spoke at the event, described the country’s revenue situation as very weak.

Ahmed, who was represented by the Special Adviser to the President on Finance and the Economy, Dr Sarah Alade, said the ministry and the government were also concerned about the issues of insecurity, poverty and unemployment in the country.

She said, “But there is also one issue, and that is the lack of revenue to be able to do as much as we want. But maybe we would be able to do if we all realise that the revenue situation in the economy is very weak. It is fragile.

“Whatever we can get, maybe there is a way we can come together to make sure that we are able to reprioritise what we spend this money so that we can then meet our national priorities.

“So, there are a lot of things, and I can only assure you that that is what we are doing. We have the medium-term development agenda, which we are in the process of implementing from 2021 to 2025. And within the five years, a lot of issues will be taken into consideration.”

On the issue of macroeconomic stability, the minister said, “Right now, the economy is weak, growth is fragile, but we are hoping growth will improve as we begin to look at the policies that we have on ground and do policy reforms to attract both local and foreign investments.”

Also speaking, the Chief Executive Officer, Nigerian Economic Summit Group, Mr ‘Laoye Jaiyeola, said government’s expenditure in the country had grown by 105 per cent since 2015, while revenue had only grown by 15 per cent..

https://www.google.com/amp/s/punchng.com/nigerias-revenue-to-gdp-ratio-lowest-private-sector-choking-wbank/%3famp

Another World record shattered by our darling general

Not surprised!



@Seniorwriter

Kaos is ladder..... Proudly Fulbe...

Please nairalander... I want to join navy or civil defence please help me... Am from kogi state. And the first born. Please help.. If you have the conection please.. God bless you.

GMB at it again

Hehe. Who is surprised? I'm not

Nigeria just happens to be number one in all the failures and bad things in the world...thanks to the dilapidated vegetable stem in Aso Rock and his cabal of c0rpses.

Nigeria has successfully diversified her economy. This effort has been on for the past 6years but gathered momentum in the last 2years of the Next Level Agenda.

Now, Nigeria can boast of internally generated revenue from non-oil sectors such as :
1. Mass kidnapping of School Children
2. BANDITRY
3. Herdsmen
4. Boko Haram
5. Corruption

The people that destroying Buhari government and he need to take decisive action against them.

CBN governor
Minister of finance
Minister of labour and productivity

Sack these people look for someone else either from southern or northern just make sure they qualify.

Another negative record for the disaster of a president

Just rephrase it, Nigeria is now officially the poorest country in the world.

We're in deep sh*t.
Nigerians contribute money and send anyone with the brightest potentials out of this hell hole, once $1=#1,000 you'll be grateful you did

There is money in the country, only that leaders need to channel productivity towards what we need.

mrvitalis:

Which school did you go to ?

Good morning Prof., what Is GDP and why is It used in measuring economic strength of Nations (The wealth of Nations)?

International Organizations will come up with different advice on National policies without considering the impact on the populace and you stand here asking me....


The write up is not even talking about bad shape of the GDP (1st in Africa) but that the GDP is skewed to petroleum. It takes a good leader to rejig the skew towards producing what is consumed in Nigeria, to reduce imports, save foreign Exchange, reduce borrowings, improve exportations and reduce inflation.

Most multinationals came to Nigeria without investing in its infrastructure, without setting up production plants or refineries. At times they pay little or no Taxes to Nigerian Governments (Thanks to strong Accounting Team which local SMEs may not have). Guess what today they are pulling their traveling bags out of Nigeria leaving us worse than they met us, taking along the best brains we have (calling them migrants and not expatriate in their destination).

These migrants are well paid, well treated abroad, we even beg them for Monies. We call it Diasporal Remittances. So no blames! Am going soon.

It's time our leaders think beyond their political gains and face the economy.

You can keep quoting

Tinubuadvocate:
The people that destroying Buhari government and he need to take decisive action against them.

CBN governor
Minister of finance
Minister of labour and productivity

Sack these people look for someone else either from southern or northern just make sure they qualify.

I thought osibanjo would handle economy and buhari handles security?

omowolewa:
The most important thing is for the GDP,

Which school did you go to ?

Truth is them no born north well to increase this ratio ... because the only way to do it is by taxing the population and that's the fastest way to break Nigeria

South would pay tax you would use to fund 44 LGA in Kano ? No body would accept that

A clear case of lootocracy regime.

Those who fight Nnamdi Kanu and Sunday Igboho are the biggest foo.ls in the world.

If only you know how successive regimes in Nigeria have looted away your destiny.

I don't welcome stupid question direct your ridiculous question to your colleagues.

mrvitalis:

I thought osibanjo would handle economy and buhari handles security?

We will rise
When the true people are in leadership position and this ganjaweed govt is off the sit,and a United are restructured Nigeria is born,joy and smile will be in our faces
Peace drop ,mic

Our disable finance minster is aware of this and the government she's part of is still borrowing money. Who builds a dilapidated economy by borrowing and more borrowing?

If sabbatical leave is possible in government, our government officials really need it.

sulaak:
Yet despite very low revenue, they are adding more debt...

This is an indication that Nigerians don't pay tax but want govt to provide paradise and utopia out of thin air. Smaller African countries in terms of GDP and population raise revenue of over $100bn out of their economy to use for public works, education and healthcare investment.

But Nigeria raise mere $30bn and ignorant Nigerians want to have world class everything out of that. Funds that cannot give a country like USA adequate fire fighting services.

South Africa will invest our entire budget on education and still have another $100bn left for other things. Yet they still have hungry looters and poorly educated people.

We are doing ourselves bad if we don't create a working tax system, age of excess oil funds is over

omowolewa:
There is money in the country, only that leaders need to channel productivity towards what we need.


Good morning

A country with 200 million people and less than 500 billion dollars GDP

I shake my head .. again which school bid u go to

Tinubuadvocate:
The people that destroying Buhari government and he need to take decisive action against them.

CBN governor
Minister of finance
Minister of labour and productivity

Sack these people look for someone else either from southern or northern just make sure they qualify.

You're not yet awake.

Very soon APC stalwarts and their equally moronic BMC members will come out to say Nigeria is having problems with GDP because it sounds like PDP.

NIGERIA HAS NEVER AND IS NOT ADDRESSING PROBLEMS OF PRODUCTIVITY, PRICING AND PROFITS.

NIGERIA BUDGET IS FOR WANTS NOT FOR VALUES. FOR BUYING NOT FOR MARKETING, FOR APPLICATION NOT FOR FUNDING.

NIGERIA GOVERNMENT NEEDS A LESSON IN JUDICIOUS DECISION BUDGETING.

Tinubuadvocate:
The people that destroying Buhari government and he need to take decisive action against them.

CBN governor
Minister of finance
Minister of labour and productivity

Sack these people look for someone else either from southern or northern just make sure they qualify.

Buhari is the one destroying his own government.

orisa37:
NIGERIA GOVERNMENT NEEDS A LESSON IN JUDICIOUS DECISION BUDGETING.

Revenue comes mainly from taxes. Nigeria government needs to spread the tax net and plug all holes.

Now, Nigeria can boast of internally generated revenue, IGR, from non-oil sectors such as :
1. Mass kidnapping of School Children
2. BANDITRY
3. Herdsmen
4. Boko Haram
5. Corruption.

I LIKE THAT.

Now, Nigeria can boast of internally generated revenue, IGR, from non-oil sectors such as :
1. Mass kidnapping of School Children
2. BANDITRY
3. Herdsmen
4. Boko Haram
5. Corruption.

I LIKE THAT.


THE SUPLIMENTARY BUDGET SIGNED ON THE 25/7/21 IS FOR HEALTHCARE ISSUES AND MR. PRESIDENT TRAVELLED OUT FOR MEDICAL CHECK UP ON THE 26/7/21.