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Investor Presentaiton

Fiscal Discipline and Ongoing Initiatives to Improve Revenues Prudent Fiscal Policy Holds Budget Deficit Below 3% of GDP Budget Deficit as % of GDP 2013 2014 -0.99 -1.32 2015 2016 2017 2018E Efficiencies -1.62 -1.92 Reforms Supporting Increased Revenue Generation NBn, % of GDP 14.3% 13.8% 63.2 67.2 69.0 9.0 9.3 -1.73 -2.41 -3.00 8.8% 7.8% 10.5% 6.1 67.9 5.3 68.5 7.2 2013 2014 GDP 2015 Revenue (Oil+ Non-Oil) 2016 2017 Revenue GDP Sources: Ministry of Finance, Budget Office of the Federation, Ministry of Budget and National Planning. 17 Fiscal Performance, Reforms and Debt Management Treasury Single Account implementation • Integrated Payroll Personnel System (IPPIS) implemented across MDAs to enhance efficiency and eliminate unjustified payroll entries Financial Sustainability Improving Non-Oil Revenues Improving Tax Revenues • Establishment of Efficiency Unit to cut costs and block leakages Adoption of a 22-point Fiscal Sustainability Plan with the States as one of the measures to tackle the 2015- 2016 fiscal crisis at the sub-national level following the decline in revenue • Presidential Initiative on Continuous Audit . Tighter performance management framework for SOES Improving Value Added Tax (VAT) collection - 85% allocated to state and local governments Introduction of a Policy on Tax on select luxury items • Increase in Excise Taxes on alcohol and tobacco • Reforms of pioneer tax incentive regimes • Broaden tax base and improve revenues (Federal and State Governments) • Resulted in the number of taxpayers rising from 13 million to 19 million . Time-limited opportunity for tax payers to regularise tax status (VAIDS)
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