83% debt service to revenue threat to economy – Minister 

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, yesterday, lamented that the 83 per cent debt service to revenue is   posing a serious threat to the economy. To this end, the Federal Government said it is striving to reduce it at 50 per cent over the medium-term period and ultimately take it down to 30 per cent. Speaking in Abuja during the presentation of 2023 Budget, the minister said government was taking steps to shore up its revenue base. Such steps include to grant tax rebate, make provisions for free registration etc. “As at August 31, Nigeria’s debt service to revenue ratio was at 83 per cent and that is why I said that what we have is a revenue challenge and we have to do everything we can to increase our revenue.  Our policy target is to keep it at no more than 50 per cent over the medium-term period and ultimately reduce it down to 30 per cent but we are currently over 50 per cent debt service to revenue” he said. On how to shore up revenue, the minister explained that tax rebate should be granted with free registration at Corporate Affairs Commission (CAC) is ongoing.

Punch