The Minister of Finance, Mr Wale Edun, has revealed that the Federation Account has experienced a significant increase in revenue since the removal of subsidy, soaring from an average of N650 million monthly to over N1 trillion in the last four months.
Speaking in Asaba at the commencement of a four-day retreat organized for members of the Federation Account Allocation Committee (FAAC), the minister highlighted the remarkable surge in revenue inflow.
Represented by the Permanent Secretary of Finance, Special Duties, Mr Okokon Udo, Edun emphasized that the government had long acknowledged the unsustainability of petroleum subsidy, noting that it had been draining revenues that could have been utilized for essential expenditures crucial to the welfare of the populace.
“The present administration is keenly aware of the needs and welfare of Nigerians,” he said. “We are committed to 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, as part of our cardinal objectives. However, we understand the necessity of minimizing the burden on taxpayers by avoiding the introduction of numerous new taxes.”
Edun further affirmed, “The focus is on broadening the tax base and simplifying and streamlining tax administration for enhanced collection efficiency.” He also highlighted the formation of a Presidential Committee of Fiscal Policy and Tax Reforms, which has submitted a promising interim report following the government’s assumption of office.
Addressing the challenge of hardship faced by Nigerians post subsidy removal and exchange rate harmonization, the minister assured that the government is unwavering in its commitment to rejuvenating the economy and ensuring inclusive economic growth and development.
“The administration has implemented well-structured palliative measures to alleviate the economic impact of the ongoing reforms,” Edun added.
