Finance Minister Wale Edun has disclosed a remarkable increase in revenue influx into the federation account following the removal of subsidies, skyrocketing from an average of N650 million monthly to over N1 trillion over the last four months.
Speaking on Monday at the commencement of a four-day retreat organized for members of the Federation Account Allocation Committee (FAAC) in Asaba, Mr. Edun highlighted the substantial enhancement in revenue since the subsidy removal.
Represented by Okokon Udo, the Permanent Secretary of Finance, Special Duties, Edun emphasized the government’s acknowledgment of the unsustainability of petroleum subsidies. He pointed out that these subsidies previously depleted revenues crucial for funding essential public expenditures, impacting the well-being of the populace.
Edun stressed the administration’s objectives of achieving a tax revenue to Gross Domestic Product (GDP) target of 22 per cent and a tax to GDP ratio of 18 per cent by 2026. He underlined the need for an expanded tax base, simplified tax administration, and streamlined collection processes to avoid overburdening taxpayers with numerous new taxes.
Highlighting the positive strides, Edun mentioned the Presidential Committee of Fiscal Policy and Tax Reforms, which submitted an interim report filled with optimism.
Acknowledging the challenges faced by Nigerians post-subsidy removal and exchange rate harmonization, Edun assured the government’s commitment to steering the economy towards recovery while concentrating on achieving inclusive economic growth and development.
Governor Sheriff Oborevwori of Delta, represented by Deputy Governor Monday Onyeme, emphasized the necessity for the federal government to exhibit political will by establishing requisite policies and institutional frameworks to diversify the nation’s economy. The governor commended the FAAC committee for enhancing revenue accruals into the federation account.
The retreat, attended by Accountant Generals from the thirty-six states, the FCT, customs officials, and other stakeholders, aims to deliberate on strategies to sustain and maximize revenue generation for the federation account.
