Nigeria - Public finance





The federal government is responsible for collecting taxes on income, profits, and property, as well as import and export taxes and excise duties. It also runs the national transportation system. The petroleum sector provides over 83% of budgetary revenues. A large share of these revenues is redistributed to state governments. The budget is consistently in deficit. In 1998, debt financing amounted to $4.4 billion, but the 1999 budget provided for only $1.7 billion.

Public investment flourished during the oil boom years of the 1970s. When the oil market prices collapsed in the 1980s however, the Nigerian government maintained its high level of spending, thus acquiring substantial foreign debt. Although privatization efforts began in 1986, increased government spending outside the official budget since 1990 has damaged public finance reform. As a result, the federal deficit increased from 2.8% of GDP in 1990 to 9% in 1998. Privatization has picked up considerably in recent years, however; the government sold all state-owned banks, fuel distribution companies, and cement plants in 2000. Nigeria is still looking to unload the troubled Nigerian Airways and the state telephone company NITEL.

Nigeria's official foreign debt is about $32 billion, about three-fourths of which is owed to Paris Club countries. Nigeria reached a one year debt rescheduling agreement in August 2000, but after a year had passed the country was still unable to meet some of the requirements. The IMF agreed to give Nigeria a few more months to meet the conditions, but as of September 2001, it did not appear that even that deadline would be met.

The US Central Intelligence Agency (CIA) estimates that in 2000 Nigeria's central government took in revenues of approximately $3.4 billion and had expenditures of $3.6 billion. Overall, the government registered a deficit of approximately $200 million.

User Contributions:

Onya Ocholi
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Nov 9, 2007 @ 3:03 am
I love this article.It has added to my knowledge on public finance, which will aid my having an 'A 'in the course as a student of Accounting.Keep it up.
albert joshua
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Feb 20, 2009 @ 2:02 am
This article has increased my understanding on the budget deficit of the country and how Nigeria government conceived the debt.It is imperical to find ways to the impediment of this economy constraint of the nation.With this enlightment on the pulic finance Nigeria I'm sure of coming out with a flying colour in my field of studies(Economics).
Henry orumgbe
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Sep 12, 2009 @ 8:08 am
This particular article is interesting to know exactly how our national resources is being expended and also how the debts hanging on the nations neck originatged. This has broading my knowledge on the subject matter.
Therefore I recommend and praise your effort.
I wish you contact donor agencies for more support to enable you to reach out more people. my field of study is Business Administration and management (BAM)
Thanks
adeniran niyi suraju
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Nov 25, 2009 @ 2:02 am
This particular article is interesting,It has added to my knowledge on public finance I'm sure of coming out with a flying colour in my field of studies(business studies)mapoly abeokuta chapter
Aderibigbe Mayode
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Dec 22, 2009 @ 3:15 pm
It's really good to have more knowledge of the subject matter as it's importance cannot be over emphasized.For this i say thank to those behind the scene.
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Mar 6, 2010 @ 3:03 am
Dis article has really helped me in writing my project.
Gabriel Olamide
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Jan 6, 2011 @ 1:13 pm
Thank you for this article i have learnt a new thing about public finance and budget deficit in Nigeria and this will help me in my studies (banking&finance).
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Nov 8, 2011 @ 1:01 am
Kudos to the writer of the article,the article as improve my knowledge of Public Finance as a student and as an indigene of the great country Nigeria.more of it we expect.
Adegboyega temitope
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Jun 21, 2012 @ 4:04 am
Infact this is an article that has contributed positively to the assignment given to me. More strength
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Feb 14, 2013 @ 12:00 am
this answer has made me got 'A's in economic all pple must come 2 dis site,cos it gives more point and makes u get more maks is can be d only way pple can knw hw much nigerians has spent in the year 2000

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