- Nigeria to Generate 80% Revenue from Non-Oil -Fowler
Federal Government efforts at increasing revenue generation and diversifying the economy may start yielding results earlier than expected as the Federal Inland Revenue Service (FIRS) has projected that 80 percent of its revenues will come from the non-oil sector in the next three years.
Mr. Tunde Fowler, the Chairman of the Federal Inland Revenue, made the statement in Abuja during the Nigeria-Canada Investment Summit.
According to the Chairman, the non-oil sector contribution to the nation’s economy rose from 54 percent in December 2018 to 60 percent in November 2019. Therefore, he said the attention should be on the non-oil sector of the economy, especially with the uncertainty surrounding the global oil market.
He estimated that Value Added Tax (VAT) from the Cable TV sector alone would be N5.1 billion in the next three years.
The Chairman added that the deduction of VAT and Withholding Tax from the state governments’ contract has helped the service generated an additional N13 billion in revenue.
This, he attributed to the new online initiative launched by the FIRS to facilitate communication, ease of doing business and efficiency with stakeholders.
Speaking on tax incentives, Fowler said the number of reliefs given to taxpayers in Nigeria was higher when compared to other nations.
“Sometimes when I look at these tax incentives and reliefs, I feel that Nigeria is the Father Christmas. But that is necessary for the growth of the economy because they attract investors,” the FIRS boss said.
