The Minister of Finance, Mr. Wale Edun, has revealed that the Federation Account has experienced a notable increase in revenue, rising from an average of N650 million monthly to over N1 trillion in the past four months following the removal of the subsidy.
Edun made this announcement on Monday during the opening ceremony of a four-day retreat for members of the Federation Account Allocation Committee (FAAC) in Asaba. Represented by the Permanent Secretary, Finance, Special Duties, Mr. Okokon Udo, the minister emphasized the government’s recognition that the petroleum subsidy was not a sustainable practice.
Highlighting the negative impact of the subsidy regime, Edun stated that it had depleted revenues that could have otherwise been allocated to essential expenditures crucial for the well-being of the populace. The minister affirmed the present administration’s commitment to addressing the needs and welfare of Nigerians, assuring that policies oriented towards the people would continue to be implemented. This shift away from the subsidy reflects a strategic move to enhance financial sustainability and allocate resources for the benefit of the citizenry.
“’We all know that achieving tax revenue to Gross Domestic Product (GDP) target of 22 per cent and tax to GDP of 18 per cent by 2026 are parts of the cardinal objectives of this administration. [b]”However, in doing that we appreciate the needs not to overburden the tax payers by introducing so many new taxes. What is necessary to be done is to broaden the tax base, simplify and streamline tax administration for ease of collection,” he said.
Edun added “Among the prior activities of this government after coming into office, was the constitution of a Presidential Committee of Fiscal Policy and Tax Reforns. The committee has submitted an interim report which is full of optimism’’.
The minister also noted that the present administration was not oblivious of the untold hardship faced by Nigerians, following the removal of fuel subsidy, and harmonisation of exchange rates.
He reassured that all the sacrifices made by people would never be in vain.
”Government is bent on ensuring that the economy bounces back to normal as we continue to consolidate on recovery efforts with focusing on achieving inclusive economic growth and development,” he added. Edun said that President Bola Tinubu-led administration has so far put in place a well-structured palliative measures to cushion the economic consequences of the ongoing reforms.
On the theme of theme of the Retreat, ”Creating a Resilient Economic through Diversification of the Nation’s Revenue”, the minister commended the choice, stressing that it was suitabl. Edun also noted that retreat clearly outlined the urgent need to diversify the nation’s economy.