Will Nigeria achieve 100% revenue target in 2024?

Nigeria's draft Accelerated Stabilization and Advancement Plan has raised concerns about the country's ability to achieve its revenue target in 2024. The document highlights a possible 27 per cent revenue shortfall due to reduced crude oil production, heavy reliance on oil receipts, and increasing expenses. Nnamdi Nwizu, Co-Managing Partner at Comercio Partners, spoke with CNBC Africa to discuss the impact on revenue drive, the government's borrowing plans, and debt management. Nwizu expressed surprise at the revenue shortfall, attributing the discrepancy to a significant currency depreciation and an increase in receipts despite lower oil production levels. However, he acknowledged the mounting expenses, including fuel subsidies and a pending wage bill increase, contributing to a higher budget deficit. In response to these challenges, the government is considering a supplementary budget of 6.6 trillion to bolster revenue streams. Despite efforts to increase taxes and explore asset sales, Nwizu highlighted the need for sustainable solutions like widening the tax base, improving productivity, and attracting foreign direct investment (FDI). He suggested that selling government assets, as Egypt successfully did, could generate substantial revenue, provided the right investment climate is established. Nwizu underscored the importance of stabilizing the currency and offering incentives to attract long-term FDI. While cautious about the inflation outlook amid global uncertainties, Nwizu emphasized the need for a balanced approach to revenue generation to avoid economic slowdown and inflationary pressures. With the intricate interplay between fiscal and monetary policies, Nigeria faces a complex challenge in balancing revenue drive with economic stability in the pursuit of fiscal sustainability.