Federal Government is expected to raise N5,066,761,33,984 from non-oil revenue in 2017, against the N5,720,342,282,942 for the year ending 2016.
The sum of N2,243,094,105,085 is to be expended on capital projects against N1,830,747,122,031 approved for year 2016.
According to a document titled: ‘Revised scenario 2017 – 2019 Medium Term Fiscal Framework,’ seen by BusinessDay, the sum of N1,393,080,272,009 is expected from corporate tax, N311,256,872,369 from NLNG tax, N16,965,00,355 from Stamp Duties and N20,745,570,302 from capital gains tax, totalling N1,742,047,715,035.
Others include: N1.8 trillion from Value Added Tax (VAT); N717,143,618,950 from Customs; N807.570 billion from special levies (Federation Account), while total of N235,666,949,142 is from Signature bonus.
Breakdown of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) shows the Gross Domestic Products (GDP) is expected to grow at 3.02 percent in 2017; crude oil benchmark pegged a $42.5 per barrel and 2.2mbpd oil production; foreign exchange pegged at N305/$1, while fiscal deficit was pegged at 3 percent.
On the proposed N7,298,507,709,937 expenditure for the year 2017, the sum of N115 billion is for National Assembly; N61,364,607,953 is for Transfer (15% NDDC); N100 billion for National Judicial Council; N92,456,040,046 for Universal Basic Education (2% of CRF); N45 billion for Independent National Electoral Commission; N4 billion for Public Complaint Commission; N65 billion for Presidential Amnesty Programme; N177,460,296,707 for Sinking Fund to retire maturing bond to local contractors.
The sum of N1,488,002,436,547 to service domestic debt and N175,882,993,952 to service foreign debt, while the fiscal deficit was put at N2,356,275,761,805 with the GDP estimated at N107,958,331,860,000.
From the total of N2,321,275,761,805 new borrowing plan, the Federal Government is expected to raise N1,253,775,761,805 at the domestic loan and N1,067,500,000,000 foreign loan.
Meanwhile, some members of the House of Representatives during the debate on the 2017-2019 MTEF/FSP expressed pessimism over Federal Government’s ability to realise the 2.2mbpd of crude oil production, $42.5 crude oil benchmark and N305/$1 foreign exchange estimations submitted by President Muhammadu Buhari for further legislative consideration.
According to a memo issued from the office of the deputy speaker, the capital expenditure for 2016 increased to N635.77 billion, adding that the revenue target of N4.169 trillion (against N3.856trn in 2016) and total expenditure of N6.687 trillion are audacious to lead the country out of recession but are achievable with effective combination of strong fiscal and monetary tools by government.
The deputy speaker, Yussuf Lasun also emphasised the need to increase the tax base, curtail militancy in the Niger Delta, inject back looted funds, diversify the country’s revenue sources and ensure strong anti-leakage and anti-corruption drives.
Lasun also expressed optimism that “with current price level of $50 per barrel and Nigeria’s current output of 1.9mbpd, the estimates are conservative enough, especially with OPEC output freeze last week.”
While reacting to the inflation rate, the deputy speaker observed, “inflation has consistently been on the increase in 2016, rising to 18.3 percent (an 11-year high) in October 2016. This was attributed to increase in food items and transportation. In addition, the depreciation of the naira and stringent foreign exchange policies impacted on the cost of importation.
“Even though the assumption to the MTEF suggest inflation will moderate to 12.92 percent, the MPR at 14 percent and cash reserve ratio of 20 percent are expected to increase money supply and boost economic activities. Consequently, inflation will remain high.”
On the forex challenge, he observed, “the CBN continued to face challenges defending the rate as the foreign exchange reserve dropped to an 11-year low of $24.12 billion at the beginning of November. Exchange rate issues and inability of airlines to repatriate funds are forcing major international carriers to leave Nigeria.”
Speaking earlier, some of the opposition members including: Leo Ogor, minority leader, Linus Okorie, Dennis Amadi, Jones Onyereri, Kayode Oladele, who spoke on the projections, argued that the 2.2mbpd crude production and revenue were threatened by the activities of the Niger Delta militants.
Specifically, Dennis Amadi urged the Federal Government to initiate policies and programmes that would impact on peasant farmers and businesses while stressing the need to halt various policies that could further frustrate Nigerians and foreign direct investment.
KEHINDE AKINTOLA, Abuja
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