As fallout of the dwindling revenue from declining oil prices, the federal government has set a revenue target of N480 billion on luxury goods within the next three years. The luxury goods being targeted for taxation, according to Ngozi Okonjo-Iweala, minister of finance and coordinating minister for the economy, include private jets, yachts, expensive vehicles and alcoholic beverages like champagne.

The minister had on November 16 announced austerity measures following the persistent drop in the price of crude oil in the international market. Speaking at the fourth edition of the Capital Market Committee, CMC, retreat in Abuja, Okonjo-Iweala listed the areas where the amount would be generated to include taxes on luxury items as well as stoppage of abuses of investment incentives, such as exemptions and waivers.

The minister also said the federal government would support the Nigerian Customs Service to block existing leakages and loopholes in order to generate more revenue.