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Difficulty: MediumSources of Government Revenue

During a financial review, a government reported the following public revenue figures for the quarter:

Revenue SourceAmount (₦\text{₦})
Company Income Tax350 billion350\text{ billion}
Customs Import Duties210 billion210\text{ billion}
Mining Royalties90 billion90\text{ billion}
Passport and License Fees30 billion30\text{ billion}
Regulatory Fines20 billion20\text{ billion}

What is the total non-tax revenue earned by the government in billions of Naira?

Answer: 140 billion Naira

Answer

The total non-tax revenue earned by the government is 140 billion Naira.
Non-tax revenue includes all income generated by public authorities from sources other than taxes, such as commercial receipts, administrative fees, fines, and natural resource royalties. Summing Mining Royalties (₦90 billion), Passport and License Fees (₦30 billion), and Regulatory Fines (₦20 billion) gives 140 billion Naira.

Step-by-Step Solution

1
Classify each revenue item as either tax revenue or non-tax revenue.
Company Income Tax (₦350 billion) and Customs Import Duties (₦210 billion) are tax revenues. Mining Royalties (₦90 billion), Passport and License Fees (₦30 billion), and Regulatory Fines (₦20 billion) are non-tax revenues.
Taxes are compulsory levies imposed by government authority, whereas non-tax revenues consist of income from administrative fees, penalties, and state concessions/assets.
2
Sum the values of all non-tax revenue items.
90 + 30 + 20 = 140 billion Naira.
Combining the non-tax receipts yields the total non-tax revenue earned.

Key Concept

Classification of Government Revenue (Tax vs. Non-Tax Revenue)
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Topics

Sources of Government Revenue

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