Agbakoba writes Buhari over huge N7trn 2021 budget deficit

A former President of the Nigerian Bar Association (NBA), Dr Olisa Agbakoba (SAN), yesterday advised the presidency to look beyond oil and explore other sources of revenue that has the potential to add almost N100 trillion revenue to the country’s coffers.

He gave the advice in view of the challenge of raising revenue to fill a budget deficit of about N7 trillion in the 2021 fiscal year.

In a letter addressed to the President, Federal Republic of Nigeria, Mohammadu Buhari, and made available to Tribune Online, Agbakoba said one area of great interest that can generate revenue is the maritime sector and more specifically, Apapa port city.

A recent report by a Dutch consultancy firm, Dynanmar shows that Nigeria loses N20 billion daily at the ports, which is N7.2 trillion yearly he cited.

“The second area that can also generate substantial income has to do with trade facilitation.
Trade is Nigeria’s second-largest contributor to Gross Domestic Product (GDP) but it is shocking that Nigeria lacks the critical and essential tools of trade facilitation which are vessels and airlines.

“So legislation is proposed to introduce the Nigerian National Shipping Line (NNSL) and Air Nigeria. If our local content policy and laws are implemented in terms of trade facilitation, Nigeria can generate over N20 trillion and 10 million jobs in 5 years.

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“The third area concerns land administration. A recent study shows that the housing inventory of Nigerian property probably exceeds $ 7 trillion but most of this is dead capital that cannot be used as collateral for financial transactions because they are not properly titled.

“Creating an efficient titling system by introducing a Land Use Administration Act will release a lot of revenue into the system. If it is properly done, estimates suggest it can generate N30 trillion over 5 years,” the letter read in part.
Looking at all these areas and without any serious study, Agbakoba said it shows that the country’ is almost at N100 trillion.

“But with concerted deep study, it is possible to hit the N100 trillion mark. The government should explore new sources of revenue to close the budget deficit and grow the economy by enacting the Strategic Revenue Growth and Recovery Act,” he stated.

According to the legal expert, there are many opportunities to realize enormous revenue and Jobs from the services sector otherwise known as the soft economy.

This is the basis of the upcoming National webinar which our firm, Olisa Agbakoba Legal is hosting with BusinessDay on the 22nd and 23rd of October 2020 to be opened by the Vice President, Prof. Yemi Osinbajo and Chaired by Chairman of Fidelity Bank, Mr Mustapha Chike-Obi.

He disclosed that the theme of the webinar is: “How Law can be a tool for Revenue Generation and Jobs Creation”.

Although he applauded the executive for the early release of budget 2021 as it signals concern to reflate the economy, noting that fiscal and monetary policy is broadly harmonized, Agbakoba wished that fiscal policy was more expansionary.

Agbakoba also commended the idea behind 5 critical elements of the government’s target initiative namely: Revenue Generation, Job Creation, Economic Growth, Ease of Process and Reducing Cost of Governance and Leakages.

He agreed that this is necessary as Nigeria is faced with an unprecedented revenue challenge exacerbated by the Covid-19 pandemic and the crash in oil price.

“I understand the SRGI is targeted at the Department of Petroleum Resources, the Nigerian National Petroleum Corporation, Office of the Accountant General of the Federation, Federal Inland Revenue Service, Nigerian Customs Service and Nigerian Ports Authority,” the former NBA president stated.

NIGERIAN TRIBUNE