The 2015 Budget of the Federal Government of Nigeria (FGN) was presented to the National Assembly on 17 December 2014. Described as “A Transition Budget”, the focus will be on “managing the revenue challenge in a manner that protects the most vulnerable while safely transiting to a broader based non-oil driven economy”.
Our analyses show that the 2015 Budget is aimed at boosting the non-oil sectors of the economy and also to raise tax revenues. The introduction of a luxury tax regime buttresses the fact that oil revenue is expected to play a less significant role in 2015 and perhaps going forward. We hope that government will implement the National Tax Policy and be consistent in its fiscal and monetary policies designed to diversify the economy and increase the country’s tax base.
We also advocate for more efforts towards reversing the trend of poor budget implementation, noting the critical role of the legislature in ensuring a speedy passage of the Budget proposal.
This publication presents key highlights of the budget and our insights on the tax and economic implications.