Nigeria Records Revenue Shortfall
Reports from thewhistler.ng which was reported to be from the Budget Office of the Federation has shown that Nigeria recorded a shortfall in revenue of about N1.01tn in the first quarter of 2020. According to them, this is due to the ongoing coronavirus pandemic which has resulted in reduced economic activity across the country.
So far, the pandemic has affected global oil prices. Also, all states in the country have been subjected to the lockdown and this has also paralysed economic activities. The N10.01tn loss in revenue accounts for about 52% of expected revenue.
Also for the revenue from oil, the actual revenue for the first quarter recorded a loss of about 30% from the prorated revenue.
“Similar, the impact of the pandemic was also felt in revenue sources such as Nigeria Liquefied Natural Gas with a revenue target of N31.07bn, signature bonus/renewals (N234.83bn), domestic recoveries (N59.25bn), grants and donor funding (9.1bn), mining and mineral revenue (N470m).”
Nigeria Records Revenue Shortfall in First Quarter of 2020
As it stands, the Federal Government is struggling to diversify the sources of revenue. The income from tax was also afftected by the coronavirus pandemic and the resulting tax.
The revenue shortfall was experienced in the area of Companies Income Tax where revenue dipped by N80.1bn from the target of N209.83bn to N129.72bn while Value Added Tax dropped by N30.92bn from N73.14bn to N42.23bn.
Nigeria Records Revenue Shortfall in First Quarter of 2020