CURRENT REVENUE

Total Federally Collected Revenue increased from N14.60 billion in 1985 toN192.77 billion in 1993, the latter figure being only slightly higher than the 1992 collections. Oil revenues dominated the receipts pictures, although they fell to a low of 66 percent of total revenues in 1986 essentially because of world oil market developments, as discussed earlier, and exchange rate developments, attained a high of 86 percent in 1992, then dropped by some two percent to 1992. Abstracting from the sharp decline from 1985 to 1986, in terms of increases, the largest increases in oil revenue wereN10.92 billion in 1987, N19.30 billion in 1989, N32.76 billion in 1990 and N81.41 billion in 1992, corresponding to 134.69 percent, 97.31 percent, 83.71 percent and 98.48 percent increment, respectively.

Correspondingly, the proportion of non-oil revenue attained a period maximum of 34 percent in 1986 and declined sharply from 1988 with relative weakness thereafter and a minimum of 14 percent in 1992. The major items of non-oil revenue were mainly Customs and Excise Duty, Company Tax and the Federal Government’s independent Revenue. However, as earlier noted, the Federal Government introduced the National Economic Recovery Fund (NERF) in October 1985 and collected N930.3 million and N889.2 million in 1986 and 1987, respectively. Revenue from Customs and Excise, traditionally, the largest single source of non-oil revenue fell in 1993. The reasons for the fall include the abolition of excise tax, the granting of duty-free exemptions to importers of good destined for public sector use, and the continued application of concessional duty rate of a wide range of imports, as discussed earlier (see also section on SAP Ameliorants). Government‘s plan to boost non-oil revenue through the introduction of a broad-based Value Added Tax, which had been studied and programmed from 1988, was shifted from 1993 to 1994, thereby contributing to the overall shortfall in revenue. However, there was significant increase in the 1993 company income tax receipts, which increased by 4.14 billion from N3.42 billion in 1992. It should be noted that the Education Tax of 2% of adjusted company profit was introduced in 1993.