What will replace Nigeria's declining oil revenue?
Nigeria's declining oil revenue

Change is inevitable, but many of us are opposed to it.

When things change, how long do we wait and hope for things to get back to normal? At what point do we come to terms with the fact that we've wasted our time and need to let go?

This dilemma is probably what the Nigerian government is facing today. For a long time, oil revenue has been the primary source of financing the budget; and it has worked. But in recent years, oil money has not been as consistent and reliable as before. So, the government has attempted to reduce its reliance on oil and look for other ways to earn money.

If you want to know how successful this has been, the annual budget has some answers.
 

Some takeaways:
 
  • Historically, oil revenue has been a primary source of funding the Nigerian budget, but the money gotten from oil has been inconsistent. 

  • It's difficult to see the effect of low oil prices and production below optimum capacity because the exchange rate devaluation makes oil prices look stable in naira, even when they're low in dollars. 

  • The government has taken steps to increase its non-oil revenue. These steps are great, but they come at the wrong time.

 

A quick budget financing primer

Every year, the Federal Ministry of Finance draws up its budget for the upcoming year detailing how much the Federal Government

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Gbemisola Alonge

Gbemisola Alonge

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