Revenue Challenges Across All Sectors

Revenue Challenges Across All Sectors By Dr Kenny Odugbemi

Oil revenue cannot grow our GDP, it is just a working capital considered as lubricant for import dependency,despite the fact that, we are not paying any subsidy, we can not see any dollar savings hence we are still under recovery mode

Cost of revenue collection by agencies
Nigeria Custom Service-N9.5bn
Federal inland revenue services- N55.24bn
Nigeria’s upstream petroleum regulatory commission-N8.54bn

Revenue challenges

We have.chronic revenue challenges due to endemic and systemic corruption of varying degrees but worse in PMB administration, hitting threshold of over N33trn based on a recent CBN financial report heralding forensic investigation led by Mr Obazi, who unofficially declared that he has recovered N12trn

We are very much in unexplainable debt now at N87.7trn, local and external debt

We have now resorted to borrowing using future earnings on our crude oil and dividend of gas now standing at $3.3bn through Afriexem bank

We have received sum of $2.5bn, which have now spread across all sectors to pay foreign investors revenue trapped here in Nigeria

This capital injection has not made a meaningful impact as our economy remains repulsive and reactionary,we are still in deficit of our $7bn
Multinationals such as P&G, GlaxoSmithkline and others have further deflated our economy by $4.5b

CBN intervention

Total disbursement to Foreign airline $136.73m
Net balance $700m

CBN has been try all thier best but price stability remains elusive
Current open windows N1500)$1
June 30 ,2024
Investor/exporter IE window N1,482/$1
Parallel market anchor $1460/$1
Loss of N133.95 at loss of 9.94%

Federal government financial structure

Net deficit between 2014-2023 stands at 861% now at over N10trn
Annual revenue- N9.96bn- N1.2trn based on savings from oil subsidies
Debt service of 98% leaving 2% for recurrent and capital expenditures, that account why we need to borrow to fulfill all our obligation

Revenue collection remedies

EFCC. has recovered N60bn between 2023-2024

PBAT has directed CBN to collect all accrued oil sales of crude oil instead of NNPC rot and fraudulent establishment, with financial wrecklessness that NNPC did not remit to federation account through 2022 paying fraudulent oil subsidy, whilst they do crude oil swap

NNPC and Ministry of Petroleum have wasted $21bn on fraudulent turn around without a drop of oil and this impunity still continues till 2024 expending $1.5bn on near end 60 years old refineries now under Mechanical testing what a colossal waste of our common patrimony

Way forward
Federal government need to review the current diversification that has for now remain cost centre cutting across
Blue economy and Marine
Solid minerals
Creative and art
Tourism
And other fragmented unproductive Ministries and agencies

Conclusion
Federal government need to curb insecurity, our major dismeanor, a major financial conduit waste across all Security interface

We have spent over N12TRN across security architecture but killings still persist in North central, terrorism in the North West and North east
Southwest is now feeling the hit where 3Monarchs were unceremoniously murdered in Ekiti state, without any immediate consequence action

We are already in a deep recession with galloping inflation 28.9%

To override hoarding by Commercial bank, CBN recommend retainership of 20%

Federal government need to recalibrate all MDA’s and restructure to pave the way for community policing under the current police division across various states to curb insecurity.

We need to curb excessive importation with ban on what we can produce to reduce pressure on our forex

Federal executives and other arms of government must control this financially wreckless expenditure in non-productive sectors