Report from Emily Muyaa, IBFD Senior Research Associate
Details of the Budget for 2016 (see Nigeria-1, News 22 December 2015 for earlier reporting) have become available.
The government proposes to reduce reliance on oil revenues (which are expected to amount to NGN 820 billion) in 2016. Non-oil revenues, comprising company income tax (CIT), value added tax (VAT), customs and excise duties, and Federation Account levies will contribute NGN 1.45 trillion.
Some of the proposed measures include:
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increasing the collection of taxes (CIT and VAT), implying enhanced compliance enforcement; and
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addressing the unemployment situation in the country through:
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a reduction in tax rates for smaller businesses; and
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subsidized funding for priority sectors such as agriculture and solid minerals.