Nigeria is Africa’s most populous country, with an estimated population of 190.9 million; it also has the largest economy, estimated at $376 billion in 2017 (World Bank, 2017). The economy hinges critically on the service sector, while oil is relied upon as the main source of foreign earnings. Despite its huge potential, Nigeria has failed to translate its resource endowment and strategic economic and demographic positions into sustained economic development. In fact, the country’s performance is abysmally low with regard to key development indicators. A portion (46 per cent) of its huge population is poor by World Bank definitions, and socioeconomic outcomes remain among the worst globally (World Bank, 2017). Specifically, Nigeria has the highest number of out-of-school children in the world (13 million in 2018), coupled with high rates of infant and maternal mortality (figure 1). Furthermore, the country suffers from inadequate and dilapidated infrastructure across the energy, housing and transport sectors. This is in relation to about $30 billion in budgeted spending for the 2018 fiscal year by the federal government, which reflects the enormous development financing challenges (Federal Ministry of Budget and National Planning, 2018). Despite these poor development indicators, the country has made modest progress in improving revenue streams, with recent developments in sectors other than oil such as the agriculture and mineral sectors.
Tax Collected: Tax revenue which has relatively maintained an upward trend, fell considerably in 2015 and dipped significantly in early 2016 on the account of economic downturn, as many businesses sev
Crude Oil Price: Crude oil price attained a historical low of $30.7 in January 2016 largely due to excess global oil supply. Crude Oil Production and Export: Oil production has continued to fall in