Nigeria to increase government revenue by 60% this year

President Bola Tinubu's administration aims to increase government revenues by 60 per cent this year, maintaining debt at manageable levels and easing widespread economic distress.

Government Revenues in Nigeria increased to N1693.02 billion in the third quarter of 2023 from N1510.09 billion in the second quarter of 2023. 

Wale Edun, Nigeria's minister of finance

Government revenues in Nigeria averaged N970.91 billion from 2010 until 2023, reaching an all time high of N1837.52 billion in the third quarter of 2022 and a record low of N498.54 billion in the second quarter of 2015.

Mr. Wale Edun, minister of finance, disclosed this at the ongoing World Economic Summit in Washington D.C.

Edun described the target as "a significant challenge," essential for reducing Nigeria's fiscal deficit from approximately 6.1 per cent of GDP to 3.8 per cent.

The minister emphasised that Nigeria, as Africa's largest economy, must adopt rigorous financial strategies to achieve this goal.

He highlighted an initiative to boost oil production to a minimum of tow million barrels per day (bpd), up from 1.47 million bpd in 2023, which fell short of the targeted 1.69 million bpd.

Edun said increasing oil output is the most direct approach to augment Nigeria's revenues. The goal of reaching two million bpd includes exploiting condensates which is the oil derived from natural gas, not subject to OPEC's production limits.

Additionally, he said the government plans to enhance revenue through improved tax, fees, and charges collection efficiency.

Edun further disclosed that the government is deploying digital technologies to streamline tax collection processes, aiming for more excellent fiscal health and economic stability.

This will, in turn, guarantee a conducive environment for investment.