Financial Derivatives Company Limited (FDC) has predicted
that Nigeria’s federally collected revenue is likely to decline further
by about 25% this quarter.
Bismarck Rewane, the chief executive officer, said the declining revenue will serve as a wake-up call for Nigeria.
He stated this at a breakfast meeting on e-filing organised by SystemSpecs Limited for stakeholders held in Lagos recently.
Rewane
said that oil and gas constitute over 60% of Nigeria’s fiscal revenue,
oil accounts for 94% of Nigeria’s export and approximately 67% of
current account receipts in the country. He noted that a
58% drop in oil prices coincided with an approximately
18% decline in government revenue in the fourth quarter of 2014.
A decline in prices of other commodities is unlikely to cushion the effect of lower oil exports on the balance of trade.
According
to him, whenever revenue declines, people tend to be more efficient,
and efficiency is most prominent in the payment and settlement system.
Rewane
explained that the more efficient payment services are, the more the
number of transactions, and the more the society gets out of it.
He said:
“The external and internal balances of an economy would depend almost entirely on the efficiency of its payment system”.
The
Systemspecs Managing Director, John Obaro announced that e-filing,
which is driven by the Remitta platform, would help boost the
government’s revenue.
Remitta, developed by Systemspecs, was adopted by the Central Bank of Nigeria for the payment and collection of funds.
Obaro said:
“With
Remitta, you can automatically submit matching schedules when you pay
pensions to PFAs. For example, tax authorities or operatives. All these
are done electronically. People can make payments to another party using
their credit or debit cards.It is a single platform which allows you
make payments to various people and at the same time on the same
platform, you empower people who want to make payment to you to pay
through any channel that is convenient for them”.
John Obaro also added:
“Remitta
is connected to all core banking applications of all the banks in
Nigeria today. You can define approval limits for people who want to
make payments with designated officers who you can define you rules
to.With Remitta you can make all your payments from the same platform,
for each payment you have, you get a comprehensive proof of payment
delivered to the beneficiary and you can easily track all payments
irrespective of the funding banks.”
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Title : Why Federal Government May Loose 25% of Revenue
Description : Financial Derivatives Company Limited (FDC) has predicted that Nigeria’s federally collected revenue is likely to decline further by about...
