Fidelity bank banner Bayelsa State banner
Why Nigeria’s debt service to revenue ratio is high: FG

By News Express on 02/05/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 541

•Budget and National Planning Minister, Udo Udoma.
•Budget and National Planning Minister, Udo Udoma.

Budget and National Planning Minister, Senator Udoma Udo Udoma, has explained that Nigeria’s debt service/revenue ratio appears high because the county is currently facing a revenue challenge. He however pointed out that as revenues improve, the ratio will consequently reduce.

The Minister, who was speaking at a Stakeholders’ Dialogue on the Implementation of the Economic Recovery and Growth Plan (ERGP) in Abuja on Tuesday, said to address this situation, a coherent and clear approach has already been set out in the ERGP to increase non-oil revenues and optimise government spending.

He pointed out that the Plan indicates that to achieve sustained growth the country will continue its current initiatives aimed at driving fiscal stimulus through a package of spending to stimulate private consumption and investments by businesses.  “This is why our 2017 Budget proposal has dedicated 30% of the Budget to capital expenditure. We intend to achieve a minimum capital expenditure allocation of 30% in subsequent Budgets throughout the life of the Plan,” he said.

To achieve this government must improve its revenue base so that we do not continue to rely on borrowing to fund our capital budgets.  “As we improve our revenues we will be able to bring down our debt service to revenue ratio, which rose sharply when our (oil) revenues dipped, he explained,” Udoma said.

According to him, concerted efforts are in place to broaden Nigeria’s non-oil revenues, leveraging the significant progress already made by the non-oil collecting agencies to strengthen and improve non-oil tax revenues.

“As the ERGP indicates, our revenue mobilisation efforts will involve, amongst other things, introducing measures to increase our independent revenues from our revenue generating agencies, as well as, cutting out waste by intensifying our current efforts to plug revenue leakages and inefficiencies in government spending.

“In the ERGP the government has also committed itself to exploring options to generate additional revenues by the restructuring and privatisation of carefully selected public enterprises. But, most importantly, the ERGP states that we will be taking measures to expand our tax to GDP ratio from the current 6% of GDP to at least 15% of GDP.  We are already working on these tax review initiatives.  The immediate focus of this Government is therefore on revenue enhancement.  For the ERGP to achieve its intended results we must be able to mobilise substantial increases in government revenues over the life of the Plan. Revenue mobilisation is therefore our number one priority,” the Minister added.

Source News Express

Posted 02/05/2017 9:35:33 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Police foils kidnap of Indian national in Lagos,...

Half of abducted Yobe schoolgirls reportedly taken outside...

South African businesses hoarding cash, expanding abroad

2019: Party members take “deadly oath” to be...

UK Audit Mission in Abuja to assess Nigeria’s...

Niger flags off distribution of N2B loan to...

Ebola ruining our business, Oyo State bush meat...

Innoson, a trail blazer in automotive industry —...

Sen. Andy Ubah beats Ernest Ndukwe at election...

El-Rufai mourns Al-Bashir, says he left a big...

Senate spits fire, summons AGF over forgery allegation...

RIGHTSView: 2013 – WHAT A YEAR FOR NTA!...

 

Latest News Late winner revives Germany World Cup hopes Certificate forgery: Pro-Democracy activists drag Buhari to court •Allege impeachable offences Why Abaribe was arrested — Counsel APC changes slogan from ‘Change’ to ‘Progress’ Lawmakers, Bishop kick against FG plan to establish cattle ranches Anambra Police apologises as Inspector kills 38 years old woman •Blames accidental discharge Army wipes out 20 armed bandits in Zamfara, arrests 3 New political party targets recruitment of 10,000 members monthly 2019: Obasanjo visits Bode George, other Yoruba leaders Monarch’s death: Enugu Govt. sets up judicial panel of inquiry INEC rules out electronic voting in 2019 Benue killings: NAF deploys 1,000 troops, 300 Special Forces

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (352,970 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (352,795 views) Shameless Genevieve Nnaji exposes breasts in public (280,900 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (230,551 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (209,391 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (209,317 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (182,192 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (164,383 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (154,109 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (148,981 views) Lagos plane crash: Journalist releases victims’ names (144,151 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (135,880 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (50) Business & Economy (3,266) Business Verdict (44) Columnists (871) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (507) Features (607) Global Business Monitor (284) International (2,052) Interview (155) Live Commentary (28) Love Matters (124) News (36,446) Opinion (1,005) Pidgin (10) Politics (5,329) Religion (772) Sports (1,562) Stock Watch (30) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Nigeria vs Iceland 2-0 All Goals & Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement