A report from the Budget Office of the Federation has revealed that between January and May 2021, the Federal Government recorded a revenue shortfall to the tune of N1.4tn,

An analysis of the Medium Term expenditure framework and Fiscal Strategy paper for 2022-2024 further indicated this.

According to the report the Federal Government’s projected revenue for the 2021 fiscal year is N7.9tn, of which N3.2tn was earmarked as pro rata target for the period under review. However, as of May 2021, the government had only generated N1.8tn, or 56.25 per cent of the pro rata estimate, translating into a revenue gap of N1.4tn. During the review period, the aggregate revenue of N1.8tn comprised of oil revenue of N423bn, non-oil revenue of N618.76bn and N762.7bn from other revenue sources including independent revenue of N487.01bn. The report read, “As at May 2021, FGN’s retained revenue was N1.84tn, 67 per cent of prorata target. FGN share of oil revenues was N423bn (which represents 50 per cent performance), while non-oil tax revenues totalled N618.76bn (99.7 per cent of prorata). Companies Income Tax and Value Added Tax collections were ahead of the budget targets with N290.90bn and N123.85bn, representing 102 per cent and 125 per cent respectively of the prorata targets for the period.