2022 Budget: FG says 65% of projected N10.74 trillion revenue to come from non-oil sources

The Federal Government has announced that it expects up to 65% of its projected aggregate revenue to fund the 2022 budget to be sourced from non-oil means of taxation

This was disclosed by the Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, during the public presentation and breakdown of the 2022 budget held in Abuja, on Wednesday.

The Minister also revealed a projected annual aggregate revenue of N10.74 trillion for the year.

What the Minister is saying

The Minister said the projected aggregate revenue available to fund the  2022 budget of N10.74 trillion (inclusive of GOEs ) is 2% higher than the 2021 projection of N8.12 trillion.

“To promote fiscal transparency, accountability & comprehensiveness, allocations toTETFUND and the budgets of 63 GOEs are integrated in the FGN’s 2022 Budget proposal,” she added.

She also revealed that in aggregate, 35% of projected revenues is to come from oil-related sources while 65% is to be earned from non-oil sources.

What you should know

• Recall Nairametrics reported in November 2021 that Nigeria’s non-oil revenue has risen 15.7% above the Federal Government’s targets to N1.15 trillion.
• Nigeria’s non-oil sector grew by 5.44% in real terms during the reference quarter (Q3 2021). The growth recorded in the non-oil sector was mainly driven by trade, Information and Communication (Telecommunication).
• Other drivers include Financial and Insurance (Financial Institutions); Manufacturing (Food, Beverage & Tobacco); Agriculture (Crop Production); and Transportation and Storage (Road Transport).
• In real terms, the non-Oil sector contributed 92.51% to the nation’s GDP in third quarter 2021, higher from the share recorded in the third quarter of 2020 which was 91.27% and lower than the second quarter of 2021 recorded as 92.58%.