FG Records N1.45trn Revenue Shortfall In 2020

The Federal Government’s generated the sum of N3.94trn in the 2020 fiscal year.

The Minister of Finance, Budget and National Planning, Zainab Ahmed gave the figure on Tuesday in Abuja during the public presentation of the 2021 approved budget.

Ahmed during the virtual presentation said the N3.94trn generated during the period represents about 73 per cent of the target for the 2020 fiscal period.

This means that out of the projected revenue target of N5.39trn for 2020, the government could only achieve the sum of N3.94trn thus leaving a revenue shortfall of N1.45trn.

The minister said while oil revenue outperformed its target, the non-oil revenue performance was not too impressive.

Giving a breakdown of the revenue performance, the Finance Minister said that the Federal Government earned N1.52trn from oil revenue representing an over performance of 157 per cent, while non oil tax revenue was N1.28trn which is about 79 per cent of target.

She said Companies Income Tax and Value Added Tax collections were N673.22bn and N192.66bn, representing 82 per cent and 68 per cent respectively of the pro-rata revised targets for the period.

Ahmed put the Customs revenue at N410.21bn which is about 79 per cent of revenue performance, adding that other revenues also contributed N993.73bn to revenue generation.

The minister blamed the revenue underperformance on the negative impact of the coronavirus pandemic, adding that Customs revenue was affected by trade slow down caused by Covid-19.