Economic Recovery Growth Plan (ERGP) 2017-2020

contracts and the enforcement of regulatory frameworks – to empower the private sector to effectively
partner with Government to drive economic recovery and growth.
2.4 FISCAL POLICY
Fiscal policy is at the heart of the Federal Government’s macroeconomic management. The current
recession is largely a result of fiscal challenges affecting public finances at the Federal, State and Local
Government levels. A coherent, clear approach is required to increase revenues, optimize public
expenditure and manage public debt.
Consolidated Federal Government revenues declined from N3,362 billion in 2013 to N3,199 billion in
2015 (Table 2.5). The sharp decline in oil prices and up to 60 per cent fall in crude oil exports due to
sabotage and attacks on oil export terminals and pipelines have reduced overall revenues. Non-oil
revenues increased from N1, 357 billion in 2013 to N1, 967 billion in 2015, but this remains low as a share
of GDP when compared to other emerging economies: Nigeria’s peers raise an average 16 per cent of GDP
from non-resource taxes; Nigeria raises just 3 per cent (2015).
Historically, Federal Government expenditures have remained relatively high, although they are small as
a share of GDP. Expenditures increased slightly from N4, 064 billion in 2012 to N4, 550 billion in 2015.
State and Local Governments were seriously affected by these fiscal challenges and most were unable to
meet their recurrent expenditure obligations, notably payment of salaries, pensions and overhead costs.
Table 2.5: Federal Government Fiscal Operations (N billion), 2010-2015
2010 2011 2012 2013 2014 2015
Total revenues 2,670 3,304 3,019 3,362 2,631 3,199
Oil revenues 1,216 2,191 1,637 2,005 1,486 1,232
Non-oil revenues 1,454 1,113 1,382 1,357 1,145 1,967
Total expenditures 4,064 4,299 4,131 4,516 4,123 4,550
Recurrent expenditures –
personnel
Recurrent expenditures –
other
1,380 1,854 1,811 1,861 1,652 1,869
1,157 673 590 526 561 681
Debt service 416 527 679 828 942 1,060
Other 210 326 307 388 381 556
Capital expenditures 900 919 744 913 588 384
Fiscal deficit (1,393) (995) (1,112) (1,153) (1,492) (1,351)
FGN total debt 5,323 6,494 7,552 8,489 9,536 10,949
Foreign debt (N) 772 871 1,014 1,370 1,632 2,112
Foreign debt (USD billion) 4,534 5,666 6,527 8,821 9,711 10,718
Domestic debt 4,552 5,623 6,538 7,119 7,904 8,837
Source: MBNP, DMO, OAGF
The Federal Government has improved its budgeting process through a series of medium-term sector
strategies (MTSS) that link annual budgets for individual MDAs to common objectives. It periodically
publishes budget implementation reports to monitor progress on project execution and improve
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